How to add Payment Schedule as Journal Entry

A payment schedule is the agreed timings of payments from one party to another, for example, to a contractor, investor or creditor. This outlines the dates and amounts of payments that are due for a particular expense or liability.

Accounting Example:

Below is an example of a single payment where the revenue is recognized on the income statement and the balance in the Unearned Revenue account is reduced. At the end of the agreed time period, the Unearned Revenue account will be zero, and the full amount will have been recognized as revenue on the income statement.

Parent Account	Account	Transaction / Reference	Date	Debit	Credit
Accounts Receivable	Accounts Receivable	Invoice / Invoice	Jan 1, 2022	10.00	-
Revenue	Sales	Invoice / Invoice	Jan 1, 2022	-	10.00

Leveraging Railz to use Journal Entries for Payment Schedules:

You may follow these steps to add Payment Schedules as Journal Entry:

Identify the accounts that are involved in the payment schedule. Typically, these accounts will include a cash or bank account, an accounts payable account, and possibly other accounts such as expense or inventory accounts.
Determine the dates and amounts of each payment in the schedule.
Create a journal entry for each payment in the schedule. The debit and credit accounts will depend on the specifics of the payment, but the debit account will usually be the accounts payable account and the credit account will be the cash or bank account.
Include a brief description of the payment in the journal entry. This could include the vendor name, the invoice number, and a description of the goods or services being paid for.

Payload example:

You can use our POST /journalEntries endpoint to add a $10 debit line item, for example, from the accounts receivable account and a $10 credit line item, for example, for the revenue account.

{
 "connection":
 {
   "businessName": "{{businessName}}",
   "serviceName": "{{serviceName}}"
 },
 "data":
 {
   "currency": "USD",
   "currencyRate": 1.3,
   "postedDate": "YYYY-MM-DD",
   "lines":
   [
     {
       "accountRef": "ID OF ACCOUNTS RECEIVABLE FROM ASP - SEE COA END POINT ",
       "description": "LINE ITEM DESCRIPTION",
       "amount": 10,
       "type": "debit"
     },
     {
       "accountRef": "ID OF REVENUE ACCOUNT FROM ASP - SEE COA END POINT ",
       "description": "LINE ITEM DESCRIPTION",
       "amount": 10,
       "type": "credit"
     }             
   ],
   "memo": "SOME MEMO"
 }
}

For more information: