Payment Schedules and Payments

Accepting multiple payments in relation to the same obligation on a payment schedule can be accomplished using two different methods that yield different results. It is recommended that your organization choose and enforce one method for its employees to follow to maintain consistency. The two methods are described below.

Entering Individual Payments

An individual is scheduled to make payments of $5 every week. The individual comes into your office with $20 and would like to make four payments at once. You enter four separate payments of $5 each. This method will postpone the next due date for a payment by the number of weekly payments made. For example, today is the 1st of the month, and it is the actual payment due date for the week. By making four payments at once, the individual is making payments toward the 1st, 8th, 15th, and 22nd of the month. The individual's next payment due date will be on the 29th, assuming the obligation has not been paid in full yet.

Entering a Lump Sum Payment

An individual is scheduled to make payments of $5 every week. The individual comes into your office with $20 and would like to make four payments at once. You enter one lump sum payment of $20. This will not postpone the next due date for a payment. However, it will change the final payment date by the number of weekly payments made. For example, today is the 1st of the month, and it is the actual payment due date for the week. The individual's next payment due date will be on the 8th. However, instead of the individual's last payment due date being on the 27th of the following month, it has been moved up three weeks to the 6th.