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Instalment Payments

The Instalment Payments extension for Microsoft Dynamics 365 Business Central provides comprehensive functionality to pay transactions through manageable and flexible instalments. This extension allows you to assign instalment plans to invoices both before and after posting, giving you the flexibility to handle various business scenarios:

  • Planned Instalments: Configure instalment schedules for invoices that were always intended to be settled through multiple payments
  • Renegotiated Terms: Convert existing posted invoices to instalment payments when renegotiating payment terms with customers

How It Works​

When an invoice is configured for instalment payments, the accounts receivable is updated by posting the necessary entries between accounts receivable and payments due. This approach ensures that customer statements only display what is due, providing clarity for your business and customers.

The app also supports GST deferral for organisations that settle GST on a payments basis, ensuring compliance with tax requirements while maintaining flexible payment terms.

Key Features​

  • Flexible Setup: Use preconfigured templates or create custom instalment plans
  • Before & After Posting: Apply instalment schedules to new invoices or convert existing posted transactions
  • GST Compliance: Handle GST deferral for organisations that settle GST on a payments basis
  • Cash Flow Management: Improve cash flow reporting by tracking when instalments are due
  • Customer Clarity: Customer statements show only current due amounts, reducing confusion

Supported Documents​

Instalments can be created for the following sales documents and also from Customer Ledger Entries:

  • Sales Orders
  • Sales Invoices  
  • Sales Credit Memos
  • Sales Return Orders

How Instalments Are Created​

Instalments are created for sales documents based on either an Instalment Schedule Code or a Payment Method Code being specified:

  • Instalment Schedule Code: Uses predefined templates with specific percentages and timing
  • Payment Method Code: Must be configured as an 'Instalment Payment Type' in the Payment Methods setup
Important

If neither option is specified, or if the Payment Method Code is not configured as an 'Instalment Payment Type', the document will post using standard Business Central functionality without creating instalments.

Getting Started​

  • Setup - Configure instalment schedules and payment methods
  • Processing - Create and manage instalment payments
  • Pricing - Subscription and licensing information