Proxima Payment terms with multiple due dates

MikePeck · ‎July 05, 2022

I have a vendor whose payment terms are:

For an example invoice dated 7/01/2022, with a total due of 1,200.00, the payments are due:

1st Payment due on 9/25/2022 for one-third of the total or 300.00

2nd Payment due on 10/25/2022 for one-third of the total or 300.00

3rd Payment due on 11/25/2022 for the final third of the total or 300.00

I have encountered these terms, in other applications called Multi Term PROX. The terms include a number of months to add tot he Invoice Date, then the day of the month Due.

PROX 2, 25 would indicate any shipment in July would be payable on the 25th of the 2nd Proximate month, on the 25th day.

Multiple PROX would take the Invoice Total divided by the number of Payments and assign due dates to each partial payment, as follows:

PO Amount $1,200.00 shipped on 7/1/2022 under Multiple (in this example) 3 PROX Payment Terms of 2, 25; 3, 25; 4, 25 would become due:

$ 400.00 on 9/25

$400.00 on 10/25

and $400 on 11/25.

I have also encountered functionality called Payment Schedules which provide equivalent functionality.

I haven't encountered a way to set up Multi Payment PROX Terms, Payment Schedules or anything functionally similar in Quickbooks.

Please let me know if they do exist and where I would find instructions for setup.

CharleneMaeF · ‎July 05, 2022

I know how this functionality would be beneficial for your business, MikePeck.

Currently, QuickBooks Desktop only uses one due date for each vendor payment. You'll want to create three separate transactions instead. You can also search for a third-party application that offers this feature.

Here's how:

Go to the QuickBooks Desktop Apps website.
In the Find Applications field, search for a keyword.
Choose an app that suits your needs.

Also, I'd recommend sending a feature request directly to our Product Development team. This helps us improve your experience in the program. I'll show you.

Go to the Help menu and then select Send Feedback Online.
Choose Product Suggestion.
Add the type of feedback.
Type in your feature suggestion.
Once done, click Send Feedback.

Additionally, I've added this article that'll help you learn more about accurately tracking your vendor transactions: Accounts Payable.

Please let me know how if you need help in managing your QuickBooks transactions. I'll get right back to this thread. Have a great day!

MikePeck · ‎July 06, 2022

I'm not sure I understand the recommended solution:

After creating a Purchase Order and recording a receiving transaction, I would then apply a Bill from the vendor to the receipt transaction.

I don't believe I can record the bill as three separate bills for 1/3 of the total PO amount but would have to alter the invoice amount, such as adding a 1 or a to the single bill number provided by the vendor.

The Vendor is expecting three payments that reference the single Bill document number and will reject any bill that does not 'match' their expected partial payments, each with a separate due date.

Can you suggest a way of meeting all of those requirements?

SarahannC · ‎July 06, 2022

Hello there, MikePeck. Thanks for getting back to us.

In QuickBooks Desktop, you would have to create a full bill and create partial payments for that particular bill.

I see how you want QuickBooks works based on your needs, and we understand how that functionality is relevant to your business. Still, I recommend the following suggestion shared by my colleague above. Sending a feature request directly to our Product Development team will help us improve your experience with the program.

You'll want to check these articles for additional information about handling vendor transactions:

We're all right here if you have more concerns with QuickBooks, MikePeck.

MikePeck · ‎July 25, 2022

In that situation, should I set the due date to the due date of the first installment or the last?

AileneA · ‎July 25, 2022

Hello, MikePeck.

The due date depends if you want to have a payment due within a specific number of days. Or choose Date Driven if you want to use the day of the month.

You can check this article for more details about payment terms.

In addition, here are two articles that can provide information about the customer transaction workflow and receiving payment in your QBDT account:

Fill me in if you have additional questions or concerns about payment terms in QuickBooks. I'm always here to help. Take care always.

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Proxima Payment terms with multiple due dates