Apply a payment schedule to the invoice journal

To use a payment schedule on the Vendor invoice journal, you must enable the Apply payment schedule to invoice journal feature in Feature management.

After you enable the feature, a new Payment schedule field is added to the Invoice journal page. When you create an invoice journal line, if you maintain payment terms on the vendor and select the payment terms on the payment schedule, the Payment schedule field updates on the Invoice journal page.

You can change the payment schedule that you use, according to your business requirement. During posting of the vendor invoice journal, the system creates vendor open transactions according to the payment schedule.

• To review multiple vendor open transactions that the payment schedule generated, 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 are generated when the invoice is approved.

Limitation

For a pending vendor invoice, if the payment schedule is on the invoice header, there's 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 the invoice journal generates 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

Starting with Dynamics 365 Finance release 10.0.42, you can merge open transactions that you split from the same payment schedule 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 you turn on that feature, follow these steps to merge a payment schedule:

1. Go to All vendors or All customers > Transactions > Settle transactions.
2. Select Payment schedule, and then select Merge payment schedule.
3. Mark open transactions that the payment schedule splits.
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.