Multiple Payment Terms

General Overview

Some business scenarios require that the payment term for an invoice is split into different due dates. For example:

• 40% paid in 10 days
• 30% paid in 30 days
• 30% paid in 60 days

This setup can be configured for both sales and purchase processes.

Steps to Set Up Multiple Payment Terms

1. Open the Payment Terms Page

   • Navigate to the Payment Terms page in Dynamics 365 Business Central.

2. Create a New Payment Term

   • Create a new payment term with the code 10D30D60D.
   • Set the description to 40% paid in 10 Days, 30% paid in 30 Days, 30% paid in 60 Days.

3. Specify Due Date Calculation

   • On the payment term line, specify the Due Date Calculation as 10D (10 days).

4. Define Due Date Lines

   • Open the Payment Terms menu and choose the Due Date Lines action.
   • Fill in the lines as follows:
     • Line 1: 30%, specify the Due Date Calculation as 30D (30 days)
     • Line 2: 30%, specify the Due Date Calculation as 60D (60 days)

5. Verify Payment Term Splitting

   • After closing the Due Date Lines page, you should see 3 in the Payment No. field, indicating that the payment term is now split into three parts.

Using Multiple Payment Terms in Sales Invoices

1. Create a Sales Invoice

   • Create a sales invoice and select the Payment Terms Code 10D30D60D.

2. Release the Invoice

   • Release the invoice.

3. View Payment Lines

   • On the Invoice menu, select Payment Lines. You will see the calculated payment terms for this invoice. You can adjust the lines manually if needed.

4. Post the Invoice

   • Post the invoice. On the posted document, you can also check the payment lines under the Invoice menu.

5. Verify Customer Ledger Entries

   • Use the Find Entries action to see that three customer ledger entries have been created, representing the three payment terms.

Compliance

Standard reminder processes and customer aging reports are fully compliant with the Multiple Payment Terms functionality.