Payment modalities can deviate from monthly payments and be due on a quarterly basis. Also the invoice and the payment date of the sale may not be on the same day. This article shows how to incorporate these specific features into the evaluation.
- Go to the “Sales” area and either click “Add” in the “Sales” section to create a new revenueor click on the respective Sales you would like to change.
In our example, we use the demo case “GM Tutorial EN (Wind Germany)” and select the already generated “Feed-in-Tariff” sales to change the payment modality.
- Next, select “Add Payment” in the “Methods of Payment” drop-down menu.
- Add the name of the payment. Then you can set the date for the first invoice. (Learn more about “How to work with relative date relations” in our article)
- The input field Frequency specifies the period between payments. (Example: 1 stands for monthly, 3 for quarterly and 12 for yearly payments.
- If the invoice and payment date are not in the same month you can take this into account with the input field Target. The Target equals the time between invoice receipt and payment (in months). By clicking “Create” you save the created template.
In our example, an invoice is issued every 3 months (payment frequency), but the effective payment is not made until one month later (payment target).
- The effects of the payment modality can be seen by looking at the profit & loss statement and cash flow statement. While the income is recorded in the income statement on a monthly basis, the cash flow statement reflects the effective payments received (every 3 months). This is illustrated in the following two graphs. The statement of income and cash flows can be found directly in the “Sales” section as well as in the details of the respective “Sales” objects.
The 3-month payment frequency can be seen in the cash flow statement (in the monthly view).
In the profit & loss statement the sales are booked posted, despite a 3-month payment frequency.