Delayed Charges with split payments

In order to defer charges and split payments over a period of time you must set up a Deferred Payment Holding general ledger account.

1. Go to: Main menu > General Ledger Module > General Ledger Menu > Chart of Accounts > Insert.
2. Set up a new General Ledger Account – Call it Deferred Payment Holding A/C.
3. Mark the account as a Current Asset type and Zero Rated for GST.

To charge a client for split payments

• Step 1: Create invoice containing purchased stock items.
• Step 2: Create multiple deferred payment invoices.

Step 1: Create invoice containing purchased stock items

1. Select the client and click Invoice.
2. Enter the product as you normally would.
3. TAB to GL A/c then enter the GL code for the Deferred Payment Holding A/C.
4. TAB through Qty to Price and enter the total value as a negative amount.
   • The Invoice should show a GST amount but no Total.
5. Click Save.

Please note, do not enter a Charge Date for this invoice.

Step 2: Create multiple deferred payment invoices

1. Select the client and click Invoice.
2. Leave Date as date of sale, but change the Charge Date to the 1st of the month that the payment instalment will be due.
3. TAB to GL A/c and enter the GL code for the Deferred Payment Holding A/C.
4. TAB to Description and enter the product name and client code.
5. TAB through Qty to enter 1.
6. TAB to Price and enter the amount due that period.
7. Click Save.
   • Repeat steps 2 to 7 above for each month of the payment split.
   • The total of the split payments should equal the total of the original invoice.

Invoice/Statement

The invoice/statement for April below displays the original invoice with the three delayed charge invoices following, with their future charge dates:

Aged Debtors

The Aged Debtors report below for April displays the delayed charges for the client as highlighted.