An example of scheduled payments

Dr Debtor 117.5

Cr   Sales 100

Cr Tax   17.5  

(generated via automatic tax)

In applying Scheduled Payments, the number of splits necessary, the percentages of those splits, and the due dates to assign to those split transaction lines is determined.

For this example, we assume a split of 4 equal amounts of 25%, with the default options for Rounding Amounts (set to Last instalment) and Tax Treatment (Apply Against All to split equally). We also assume 2 decimal places is used for the currency.

The split debtor amounts are calculated as follows:

Instalment for Due Date 1: 29.38

Instalment for Due Date 2: 29.38

Instalment for Due Date 3: 29.38

Instalment for Due Date 4: 29.36

(accounting for the rounding adjustment on the final value)

At this point, additional ledger lines have been generated, but not posted. Before posting, Payment Terms are applied to each of the individual split lines, to generate additional dates such as document dates, discount dates and interest start dates, which may be governed by the due date, now generated for each line.