In this video, our Senior NetSuite Consultant, Sarah Meehan, shares an update to the installment payment functionality that is coming as part of NetSuite release 2020.2. As of version 2020.1, any tax that is being charged as part of the invoice is included as a lump sum in the first installment payment and cannot be distributed across the installments. Once your system is upgraded, you will have the ability to choose whether taxes are included upfront in the first installment or are assessed evenly between all installments.
To configure the tax distribution on an installment term, navigate to Setup > Accounting > Accounting Lists > Terms > New. Once you check the Installment box, the configuration options for Recurrence Frequency, Recurrence Count, and Repeat Every X Month(s) will be displayed along with a checkbox that indicates whether the amount should be Split Evenly and the new Pay Tax Upfront field.
If the Pay Tax Upfront checkbox is checked, all tax fees will be included in the first installment. If the box is unchecked, the tax will be distributed proportionally across all of the installments.
Installment payments are available as a standard functionality of the NetSuite ERP system and the added capability to control tax distribution makes them an even more useful tool for organizations in all verticals. Do you have questions about setting up installment payments in NetSuite or need guided support from one of our NetSuite experts? Contact Concentrus today to discuss your NetSuite needs.
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