Create a Partial Payment

You can create a partial payment for an invoice (in the AP Payment Control Detail form) when you need to split payments or when you need separate checks to pay the vendor and vendor/supplier.

Partial payments are payments of anything less than the total invoice.

A partial payment is implemented by splitting the transaction into two sequence numbers. You can create a partial payment for either the entire transaction, or at the line/sequence level.

Transactions that have retainage applied are automatically split into two sequences, one for the current amount, and one for the retainage portion, which is placed on hold. If you split a transaction that has retainage, a third sequence is created, which can also be placed on hold (non-retainage holds only).

You can also split released retainage into partial payments and put a portion of the retainage back on hold.

To create partial payments:

  1. From the main menu, select Accounts Payable > Programs > AP Payment Workfile.
  2. In the AP Payment Workfile form, select the transaction from the grid for creating a partial payment.

    If your grid does not have any transactions, enter Payment Selection Criteria in the fields at the top of the form, then select Fill Grid.

  3. Select File > Additional Pay Control Functions.
    The AP Payment Control Detail form displays.
  4. Select the Partial Payments tab.
  5. In the Partial Payments section, select the appropriate radio button.
    • Entire Transaction
    • Select Line and Sequence
  6. If you selected the Select Line and Sequence option, enter a line number and sequence number in the Line# and Seq# fields, respectively.
  7. In the Amount field, enter the partial payment amount.
    The system enables the rest of the fields on the form.
  8. If the partial payment is to be paid by a two-party check, enter the second party in the Supplier field.
  9. If you want to place the remaining amount on hold:
    1. Select the Put the original on hold checkbox.
      The system enables the Hold Code field.
    2. In the Hold Code field, enter a non-retainage hold code. Press F4 to select from a list.
      Note: You can only enter non-retainage hold codes in this field; you cannot place a retainage hold on transactions/lines using this form.
  10. If you want discount amounts distributed equally between the sequence numbers for the split transaction:
    1. Select the Distribute Discounts checkbox.
    2. Select the Distribute Tax checkbox to distribute the tax amount to each of the partial payments.
      Note: For Australian and Canadian companies only: If you released retainage, split it for payment, and plan to put a portion of it back on hold, do not select Distribute Tax. You want to keep all retainage tax on one of the sequence numbers and pay this portion first, putting the non-taxed retainage back on hold.

      If you put part of a split retainage with tax back on hold, you will most likely see an incorrect tax amount when you release the retainage in the future.

      For more information, see About Partial Payments for Split Released Retention / Holdback with Tax (AU and CA).

  11. Click Update.
The system splits the transaction into two sequence numbers. You can now pay each sequence as appropriate.
Note: If you release retainage and split it for payment, but you put the retainage back on hold without paying any of the split, the batch posting action to put the retainage back on hold will automatically remove the split.