Creating and Using Scheduled Payments in Dynamics GP

 

The Scheduled Payments process in Dynamics GP is geared towards setting up payments for an amortized schedule such as a car payment, etc. In essence, this creates a “payment” on an existing invoice and then “re-enters” the invoice as several invoices while calculating principal and interest for you and posting those accordingly. Its kind of awesome!

You can set up Scheduled Payments in both Sales and Purchasing – we will focus on setting up a Purchasing Scheduled Payment in this blog.

The first step is to enter an AP invoice for the Vendor and post it, just the same as you normally would.

SETTING UP A SCHEDULED PAYMENT

At Purchasing>Transactions>Scheduled Payments

  • Allow the Schedule Number to default from the Next Schedule Number in Payables Setup.
  • Enter a great description of the Schedule for your reference. This description can be brought into any reports you create
  • In the Original Document Number, you will select the already existing invoice that you entered before setting up this schedule.
    • Tip: Use the column headers to sort by Vendor or Document Number to help find the invoice
    • The Document Type, Vendor ID and Vendor Name will default in from the Document
    • Select the Schedule Document date: Usually the date of the purchase
    • Select the Schedule Amount
      • This will default to the full invoice amount, but if you put money down on the purchase you can adjust this number to be the balance of what you owe
        • In my example below, the original invoice is for $55000.00, but I put $30,000 down so my schedule is only for $25,000
        • Select the correct currency
        • The AP Account will default in
        • The Payables Offset is usually the same account that you posted the original invoice to (I’ll include a table of what these accounts do to help explain below)
        • The Interest Expense Account should be the one to which the future invoices will post to.
        • Select the Interest Type (Compound or Simple)
        • Enter the interest rate
        • Enter the Number of Payments
        • Select the Pay Frequency, choices are:
          • Semi-Monthly
          • Monthly
          • Quarterly
          • Semi-Annual
          • Annual
          • Hit Calculate to find what the payment amount will be
          • Make sure the First Invoice Document Date and the First Invoice Due Date are correct – all other document and due dates are calculated from these

When Done Here, you can even view and print the Amortization Schedule!

As soon as you are satisfied with the results of the calculation remember to POST the scheduled payments. This will NOT place these invoices out into an Open Status for the vendor at this point – you have to MANUALLY post these.

*See Below for Tables of How the Posting Accounts Work*

USING AND PAYING SCHEDULED PAYMENTS

Posting Scheduled Payments

The first thing to do will be to Post each scheduled invoice. The place to post these is at Purchasing>Routines>Post Scheduled Payments.

Pull up the Schedule Number or Vendor ID to select the invoices to Post (you CAN post them all at once, but this is not recommended. I recommend setting an alert to post these for payment on a monthly basis).

As an alternative to pulling up the invoices by Schedule Number or Vendor ID is to enter the “Cut Off Date” you are looking for – this will bring up the invoices for ALL of your schedules to be marked and posted. (remember to hit “redisplay”)

Once you click Post, this will create an invoice for payment in your AP and post the principal and interest to your GL for the month (or period for your payment).

Paying Schedule Payments

As noted in my example, I paid a down payment, let’s assume by cashiers check so I will be entering a manual payment for that down payment. As you can see from the screenshot – the $30,000 is the remaining balance on my initial invoice.

I could then pay the scheduled payments though any other regular payment method – including select payments OR manual payments.

GL EFFECTS

 

Original Purchase of the Automobile

Account

Debit

Credit

Accounts Payable
000-2100-000

                                                     -  

                                   55,000.00

Payables Offset posting account
000-2800-000 (Note Payable)

                                   50,000.00

                                                     -  

Tax

                                         5,000.00

                                                  -  

 

Creation of Schedule Posting Effect

Account

Debit Amount

Credit Amount

Accounts Payable (Amt of Invoice Above Less Down Payment)

$25,000.00

 

Payables Offset (Amt of Invoice Above Less Down Payment) In My Example, the Note Payable Account

 

$25,000.00

 

Period Posting of Schedule Effect

Account

Debit Amount

Credit Amount

Accounts Payable

 

$466.08

Payables Offset In My Example, the Note Payable Account

$373.73

 

Interest Expense

$92.35

 

 

Process Payment of the Scheduled Invoice

Account

Debit Amount

Credit Amount

Accounts Payable

$466.08

 

Cash

 

$466.08

 

Awesome, right??