Apply a payment schedule to the invoice journal

Important

Some or all of the functionality noted in this article is available as part of a preview release. The content and the functionality are subject to change. For more information about preview releases, see Service update availability.

In Microsoft Dynamics 365 Finance release 10.0.25, a payment schedule is now supported on the Vendor invoice journal.

To use this functionality, you must enable the Apply payment schedule to invoice journal feature in Feature management.

After the feature is enabled, a new Payment schedule field is added to the Invoice journal page. When you create an invoice journal line, if payment terms are maintained on the vendor, and the payment terms are selected on the payment schedule, the Payment schedule field is updated on the Invoice journal page.

You can change the payment schedule that is used, according to your business requirement. During posting of the vendor invoice journal, vendor open transactions will be created according to the payment schedule.

• To review multiple vendor open transactions that were generated from the payment schedule, go to Accounts payable > Invoices > Open vendor invoices, and enter the invoice number or the vendor account.
• To review or configure the payment schedule, go to Accounts payable > Payment Setup > Payment schedule.
• To configure the payment terms and assign a payment schedule, go to Accounts payable > Payment setup > Terms of payment.
• To maintain the payment terms on a vendor, go to Accounts payable > All vendors, select the vendor account, and then, on the Payment tab, set the Terms of payment field.

The payment schedule feature is also available in the Vendor invoice register process. If a payment schedule is selected on the invoice register journal, multiple vendor payment lines will not be generated when the invoice register is posted. The vendor payment lines will be generated when the invoice is approved.

Limitation

For a pending vendor invoice, if the payment schedule is on the invoice header, there is an advanced page that lets users edit the payment lines. (For example, users can edit the due date and value for each payment line.) Payment lines that are generated from the invoice journal will have the value from the payment schedule.

This functionality will be available for the Vendor invoice journal and Pending invoices in a future release.

Merge a payment schedule

As of Finance release 10.0.42, open transactions that are split from the same payment schedule can be merged again by using the Merge payment schedule button.

The Merge payment schedule for customer transactions or vendor transactions feature in Feature management introduces this functionality. When that feature is on, follow these steps to merge a payment schedule.

1. Go to All vendors (or All customer) > Transactions > Settle transactions.
2. Select Payment schedule and then Merge payment schedule.
3. Mark open transactions that were split by applying the payment schedule.
4. Select Mark as primary payment to select the main payment.
5. Select Merge payment schedule to combine all the marked transactions into one payment that has the same due date as the primary payment.