Scheduled Payments in Microsoft Dynamics GP

The Payables Scheduled Payments provide us to divide a large invoice into small ones, depending on the number of payments we want to make. When we post scheduled payments, the scheduled invoices will be created and we need to post these using Post Payables Scheduled Payment window.

In Scheduled payments we can choose the interest rate, interest type, payment frequency, posting accounts and some other information. We can create scheduled payments for any open documents and also can edit any information on unposted payment schedules, as well as the interest and number of payments for posted payment schedules.

The following chart shows what accounts to use and how they are debited and credited.

Account Debit Credit
Accounts Payable posting account Debited with the scheduled payment amount, including principal and interest, when an individual payment is posted using the Post Payables Scheduled Payments window. Credited with the total schedule amount, not including interest, when the payment schedule is posted using the Payables Scheduled Payments Entry window.
Payables Offset posting account Debited with the total schedule amount, not including interest, when the payment schedule is posted using the Payables Scheduled Payments Entry window. Credited with the scheduled payment amount, not including interest, when an individual payment is posted using the Post Payables Scheduled Payments window.
Interest Expense posting account Debited when you post a payment schedule. Credited with the interest portion of the scheduled payment amount when an individual payment is posted using the Post Payables Scheduled Payments window.

Example:

We need to create a scheduled payment for the invoice amount of $1,200.00 with using 10% of simple interest and split it into 12 monthly payments. Based on this scenario, the amount due for each month is $110.00. To achieve this requirement follow below steps.

1. Create a invoice for the amount of $1,200.0 in Payables Transaction Entry window(Transaction–>Purchasing–>AP Transacation Entry).

Note: When we post the invoice, the below accounts are updated.

Account Debit Amount Credit Amount
Accounts Payable $0.00  $1,200.00
Purchase $1,200.00  $0.00

2. Go to: Scheduled Payments Entry window (Transactions –> Purchasing –> Scheduled Payments).

3. Choose the posted document which we have created in step 1.

4. Now the scheduled payment amount $1,200.00 automatically fill in the field Schedule Amount.

5. Choose the Interest Type as simple, enter the Interest Rate 10% and Number of Payment 12.

6. Choose the Payment Frequency as monthly and click the Calculate button.

7. After clicked the calculated button, due amount $110.00 for each month value will populated into the field Payment Calculated Amount.

8. Click Amortization button to verify each month payments.

9. After verification completed, post the payment schedule.

10. When we post the payment schedule, the below accounts will be updated.

Account Debit Amount Credit Amount
Accounts Payable $1,200.00  $0.00
Payables Offset $0.00 $1,200.00

11. Go to: Post Payables Scheduled Payments window (Microsoft Dynamics GP menu –> Tools –> Routines –> Purchasing –> Post Scheduled Payments).

12. Post one of the 12 individual payments for the amount $110.00.

Note: After posted payables scheduled payment, the below accounts will be updated.

Account Debit Amount Credit Amount
Accounts Payable  $0.00 $110.00
Payables Offset $100.00  $0.00
Interest Expense $10.00  $0.00

13. Go to: Payables Manual Payment Entry window (Transactions –> Purchasing –> Manual Payments) to create a manual payment to pay the amount $110.00 to vendor.

Note: After posted manual payment, the below accounts will be updated.

Account Debit Amount Credit Amount
Accounts Payable $110.00 $0.00
Cash  $0.00 $110.00

14. Continue the process for each monthly payment schedules.

Hope this helps!!!

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2 comments

  1. We implemented scheduled payments but are receiving an error. Our schedule document date is in August but we balanced AP for August and closed the month. In September we are attempting to post a scheduled payment and receive the following error: “The fiscal period that contains the document date is closed”. I also set up a loan amortization schedule that continues for 20 years. Since we close periods how is this ever going to work for us if a credit memo needs to offset the original document dated in August?

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