Paying Vendor Bills in Installments
Record a bill payment by doing one of the following:
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To pay a single vendor, click Pay Single Vendor.
For more information, see Paying Bills to a Single Vendor.
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To pay bills for several vendors, click Pay Bills.
For more information, see Paying Bills to Multiple Vendors.
When paying a bill in installments, each installment is treated as a separate bill and has its own reference number.
When you make a payment, the status of the bill changes. If you pay more than the amount due for an installment, the overage amount is applied to the next installment. If the overage amount does not completely cover the amount due for an installment, the status for that installment is Partially Paid. Similarly, if an installment payment is late, the aging balance shows the installment payment amount as Past Due, not the entire balance.
When the status of an installment is Unpaid after the due date, only the late installment is marked as Past Due, not the entire bill.
Note that when paying installments, taxes are always added to the first installment.
The A/P Aging report details aging for individual installments. Each installment is considered based on its own due date.
Installments and Discounts
When making vendor payments, some vendor bills have discounts applied. Vendor bill discounts work with installments as described below.
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When paying a single vendor bill – If the payment amount is greater than the amount due, the payment amount is recalculated as follows:
Payment amount = amount due - discount
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When paying multiple vendor bills – The discount defaults to show zero. A discount is not allowed on when using terms.