You can enter invoices that will be paid by a series of payments, or installments. For example, you can allow your customer to make six payments over a certain period to pay a single invoice.
To allow an invoice to be paid in installments, you assign a terms code that includes a multiple payment schedule that specifies the required number of payments and a series of due dates spread over the desired period (such as six monthly payments).
Multiple payment schedules help you to track the payments for each invoice, and they let you charge interest on scheduled payments that are overdue, rather than on the invoice total.
Based on the information entered for the terms code, Accounts Receivable creates a payment schedule that divides the invoice total into the specified number of payments, each with its own due date, payment amount, and discount period.
When you receive a scheduled payment from the customer, you use the A/R Receipt Entry screen to apply the receipt to the particular payment for the invoice.
You can print payment schedules on batch listings by selecting the Show Schedules option on the A/R Batch Listing screen.