NSC | Understanding the Amount and Quantity computation of a Billing Schedule with Initial Amount

Scenario

The user created a Billing Schedule with an Initial Amount and wanted to understand how the Amount and Quantity were calculated after generating the initial Invoice. 

Computation and Explanation

Sales Order Data

• Sales Order Total Amount = 120,000
• Item Quantity = 1
• Sales Date = 5/29/2025

Billing Schedule Data

• Initial Amount = 10,000
• Initial Payment Terms = Null
• Recurrence Frequency = Monthly
• Repeat Every = 1 month
• Recurrence Count = 12
• In Arrears = Unchecked
• Recurrence Payment Terms = Null

Below is the Schedule generated from the setup above:

Amount Computation

• First month: 10,000 (Initial Amount) + 9166.6667 (Monthly Amount) = 19,166.67
• Monthly Amount: 120,000 (total amount) - 10,000 (Initial Amount) = 110,000 / 12 (12 months) = 9166.6667
• Second until the last month = 9,166.67

Note that the last month amount will be adjusted automatically to make sure that all the Billed Amount is still equal to the Sales Order Total Amount