The NetSuite Installments feature allows you to set up installment payment terms for your customers and vendors. Let’s take a look at how you would set up and use the Installments feature in NetSuite.
Setting Up the NetSuite Installments Feature
If you’re going to use the Installments feature, what all do you need to do to set this feature up?
Enable the Feature
First, you’ll need to enable this feature, which you can do under the Advanced Features section of the Accounting tab in Enable Features. Enabling Installments adds an Installment checkbox to the Term record, allowing you to create installment terms.
Create an Installment Term
To create an installment term, navigate to Setup > Accounting > Setup Tasks > Accounting Lists > New and choose Term from the list. This will take you to the Term record.
On the Term record, select the Installment checkbox to enable Installment-specific fields and to disable any irrelevant fields.
In the Terms field, you’ll name this installment term something that will describe the length of the term. For example, you could name the term something like “Six Month Term.” For that example, in the Days Till Net Due field you would write 180.
Then, you’ll set the installment parameters. For a six month term, you would set the Recurrency Frequency field to Monthly. Your other frequency options include Annually, Daily, and Weekly. The Recurrency Count field records the number of times a payment would be due. For a six month term, you would set both this field and the Repeats Every field to 6.
The checkbox Split Evenly allows you to ensure the payments that are due each month will be the same amount, and the Pay Tax Upfront checkbox lets you require tax with the first payment.
To charge different amounts at each installment payment, deselect the Split Evenly checkbox and manually enter your desired installment percentages.
Once you’ve set your installment term parameters, save the record.
Using the NetSuite Installments Feature
You can use installments on either sales orders or purchase orders. On either a new sales order or a new purchase order, navigate to the Billing subtab and select one of your installment terms from the Terms dropdown field.
The details of the terms you selected cannot be edited directly on a sales order or purchase order, but you can edit them on the invoice or vendor bill.
When a customer makes a payment on an invoice, the amount they pay will be applied to the first installment. Any overage on the first installment amount will carry over to begin paying for the second installment.
The NetSuite Installments feature gives you greater flexibility in how you manage customer and vendor payments. If you enjoyed this blog, be sure to subscribe to our newsletter below! Each week, you’ll receive our next blog right in your inbox (and we promise never to spam you). See you there!