Weekly Review: Receivables Scheduled Payments

Last week we looked at Payables Scheduled Payments and this week we’ll take a look at the other side of the coin, Receivables Scheduled Payments. This feature allows companies to setup payment schedules, with or without interest, for existing receivable transactions.

The screen works the same way, a schedule number and description are used to track this receipt schedule. The original document is selected along with the first payment and date. Then the schedule is setup with interest, number of payments, first invoice date and due date. Finally the AR, Receivables offset and Interest income accounts are set.

The process credits the original invoice and creates a series of smaller invoices representing the Scheduled Payments. This means that it makes sense for the Receivables offset account to be a contra account off receivables. This will also show then how much of AR has been converted to scheduled payments.

Click the Calculate button to calculate the payment and the Amortization button to view the amortization.

Posting Scheduled Payments and replacing the original invoice is controlled in Routines and the dates can be controlled so that not all scheduled payments are created at one.

The help contains specifics for situations like advanced principal payments and amortizing because of that.

Originally posted by Mark Polino at 3/22/2010 09:00:00 AM

Weekly Review: Payables Scheduled Payments

 

A relatively new feature in Dynamics GP is the option to take a payables transaction and split it into multiple payments. This is great for things like loans or leases. The entire transaction can be entered into payables and then paid in installments while accounting for interest.

To set this up, click Purchasing in the Navigation List on the left and pick Scheduled Payments. Use the lookup button to select an existing payables transaction to schedule.

Most of the rest of the screen is straightforward with the schedule date, total to pay over time, simple or compound interest, an interest rate and invoice dates.

The Calculate button at the bottom will calculate the new payment. The amortization button shows the amortization scheduled.

Then there are three accounts at the bottom. Essentially the accounting for this removes the amounts from payables and puts them in another liability account. Processing the scheduled payment move the liability back into payables and applies the interest expense. The accounts (in order) should be your normal payables account, a different liability account since these are no longer immediately payable and an interest expense account.

Click Post to create the schedule.

Use Post Scheduled Payments in Purchasing | Routines to process scheduled payments.

Originally Posted by Mark Polino at 3/15/2010 10:00:00 AM

Scheduling, Scheduling, Scheduling Payments in Dynamics GP | Dynamics GP Insights

Christina Phillips tackles Scheduling Payments in Dynamics GP.

Weekly Dynamic: Payables Scheduled Payments

A relatively new feature in Dynamics GP is the option to take a payables transaction and split it into multiple payments. This is great for things like loans or leases. The entire transaction can be entered into payables and then paid in installments while accounting for interest.

To set this up, click Purchasing in the Navigation List on the left and pick Scheduled Payments. Use the lookup button to select an existing payables transaction to schedule.

Most of the rest of the screen is straightforward with the schedule date, total to pay over time, simple or compound interest, an interest rate and invoice dates.

The Calculate button at the bottom will calculate the new payment. The amortization button shows the amortization scheduled.

Then there are three accounts at the bottom. Essentially the accounting for this removes the amounts from payables and puts them in another liability account. Processing the scheduled payment move the liability back into payables and applies the interest expense. The accounts (in order) should be your normal payables account, a different liability account since these are no longer immediately payable and an interest expense account.

Click Post to create the schedule.

Use  Post Scheduled Payments in Purchasing | Routines to process scheduled payments.