Vendor Payment Schedule in Microsoft Dynamics 365 Finance and Operations

Wish you All Happy New Year!!!

In this blog we will see how we can create payment schedule and apply the schedule on the posted invoice. So, what is Payment schedule in Dynamics 365??? So, payment schedule is to create the number of instalments for a given invoice.

For example, company has agreement with vendor that company will pay the invoice amount in 10 different instalments based on some method it can be equal amount, percentage, distributed etc…but invoice will be posted only once.

So, to achieve this we can use payment schedule to achieve this scenario. Now payment schedule can be applied on invoice in two different ways:

1. Automatic

We can map created payment schedule on Terms of payment, or we can map payment schedule on vendor master, or we can specify payment schedule on purchase order. With this setup after posting invoice system will create the payment schedule transactions automatically.

2. Manual

If user has forgot to do above setup, then user can navigate to posted invoice and apply the schedule.

In this blog, we will see the “Manual” Approach. So, let’s start:

Setup:

Navigate to Accounts Payable > Setup > Payments > Payment Schedule

Apply Payment Schedule:

Navigate to, Accounts payable > Vendor > Invoice > Settle Transactions > Select Transaction > Click on Appy Payment Schedule

Select Payment Schedule > Ok

View Payment Schedule, this shows the number of transactions generated using payment schedule with respective due dates for payments.

Note: These transactions can be generated if we map payment schedule on invoice/vendor/payment term.

That is it for this blog, hope this will help you in your implementation.

Thank You!!! Keep reading and sharing!!!