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Generating Installments
Generating Installments
You can create invoices with an installment plan by generating multiple due dates on the open items. An installment plan is a series of payments created to pay the gross amount of an invoice over time. The plan is based on an agreement between the company and the vendor.
Both Accounts Payable and Accounts Receivable generate invoices with installments and support payment application on installment documents. All of the installment information is carried through on the financial reports, and on the invoices created in the Order Processing module. An installment is treated exactly the same as any other open item in the financial system, including payment processing.
You can define whether installments are used for a particular open item through the credit terms code assigned to the item's invoice. The installment information for each credit terms code is stored on the Reference File (categories 223 and 247) but maintained through a new Credit Terms Maintenance conversation. (Entering this information through a new conversation rather than Reference File Maintenance allows additional validation for the information.)
For each credit term, you must define the number of installments that will be used to pay any invoice that uses the credit terms. You may specify no installments by entering 0 for the number of installments.
Once you have specified the number of installments for the credit terms code, you define the following additional information:
· The number of days between each installment, and an optional installment shift value used to shift the due date to a specific day of the month. These two options give you the flexibility to stagger the time between each installment due date.
· The amount of each installment. You specify the amount as a percentage of the total amount due on the item.
Please note that installments can only be generated through Accounts Payable when you create an invoice. The Purchasing module does not create installments
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