Invoice Installments

A Payables invoice consists of the following components: header, lines, distributions, and installments. The invoice header has common information, such as invoice number and invoice date. Invoice lines record details of the goods and services. Distributions have invoice accounting details, and installments consist of payment due and discount information.

 

 

 

Invoice Installments: Explained

An installment is the part of the invoice that specifies payment due dates, amounts, and other payment information. An invoice can have one or more installments.
The payment terms and terms date on an invoice are used to calculate payment due dates and amounts. For example, if an invoice has payment terms of Net 30, the due date is 30 days after the terms date.

Splitting an Installment

You can split an installment. For example, you split an installment to make payments on two different days or to use two different payment methods. When you split an installment, another installment is automatically created for half of the gross amount of the installment that you split. You can then edit the due and discount dates and amounts on the new installment.

Caution: You can't split an installment that's paid, partially paid, on hold, or selected in a payment process request.

Placing or Releasing a Hold on an Installment

You can place and release holds on installments. Installments with holds can't be paid.

Caution: You can't place a hold on an installment that's paid, already on hold, or selected in a payment process request.

 

 

Invoice Installments: How They're Recalculated

During invoice entry, installments are automatically created using payment terms and terms date information. You can configure your setup to recalculate installments during the invoice validation process.

Settings That Affect Installment Recalculation

Select the Recalculate invoice installments option on the Manage Invoice Options page to recalculate the installments.

Note: Installments are recalculated, regardless of how the recalculate option is set, when both of the following conditions occur:

• You enable the Exclude tax from calculation option on the Manage Invoice Options page.
• You manually change a tax amount.

How Invoice Installments Are Recalculated 

Installment recalculation uses the most recent applicable start date and the more favorable payment terms. To determine which is more favorable, the ranks on the payment terms are compared.

Caution: Installments aren't recalculated if you manually edit or split any of the installments.

The following table shows which start dates and payment terms are used for recalculating installments for matched and unmatched invoices. 

Matched to a Purchase Order	Start Date	Payment Terms
No	Most recent of the following: Invoice date Terms date Goods received date plus number of receipt acceptance days	Invoice payment terms
Yes	Most recent of the following: Invoice date Terms date Goods received date plus number of receipt acceptance days	More favorable of the following: Invoice payment terms Purchase order payment terms