How to set up Terms of payment & Payment schedule in D365 Finance & operations

Time needed: 10 minutes.

Steps

1. Go to Account Receivables -> Payment Setup -> Payment schedules

   Click New and add Payment schedule name and description whatever you feel is justified

2. General Tab -> Payment schedule -> Allocation
   Select specified

   There are 4 Options
   a) Total – On total amount
   b) Fixed amount – Due divided on a specified fixed amount
   c) Fixed quantity – Due divided in specified no of installments
   d) Specified – Unproportionate amount in unproportionate no of
   interval
   

3. Select Payment per Months

   There are 3 options
   a) Days
   b) Months
   c) Years

4. Select Sales tax and Charge allocation- Proportionally

   There are 3 options
   a) Proportionally – Divided as per installment ratio
   b) First installment – Charged in the first installment
   c) Last installment – Charged in last installment

5. Create Payment Lines as per below screenshot

   Number of the period(Months in our case) to be taken after the due date and percent of the total amount specified to distribute amount with period

6. Go to Account Receivables -> Payments setup -> Terms of payment

   Create new Terms of payment with 30 days to specify to a payment schedule to follow 70% payment line (which itself has 1 Month period) due after 30 days of the invoice date – thereby creating first payment due after 2 months with 70% amount and 2nd payment line will be followed after 1month of 1st installment due date with rest 30% amount
   
   

7. Now You can create Free text invoice to verify the same

   To Illustrate the above scenario of 70% and 30% in 60/90 days, Invoice of 100 amount was created