Enter Installment Plan

Explanation

Use this activity to enter an installment plan. A plan consists of a number of installments connected to a payment term. Each installment number has fields that define payment date, percentage of the total amount, and payment method. 

Note: A payment term requires at least one installment. If there is only one installment, you should enter 100 in the Net Amount Percentage field. Each installment can have multiple payment term detail lines. The net percentage for each detail line will be the same as net percentage for the installment. Each installment can cover up to a total of 31 days, and you can divide those days among the installment's detail lines, but the days covered by each detail line cannot overlap the days covered by another detail line in the same installment.

The following table shows an example of two installments that have multiple payment term detail lines.

Installment Number Day From Day To Net Percentage

1

 1 10 20

1

 11 20 20

1

 21 31 20

2

 1 15 80

2

 16 31 80

You can define the number of days to the due date or last day of a month, depending on the defined value in the Number of Free Delivery Months field: 0 = no free delivery month, 1 = current month is free (switch to the last date of the current month), 2 = current and next months are free (switch to the last day of the next month).

The following priority order is followed when calculating the due date/discount date of the invoice.

  1. Number Of Free Delivery Months
  2. Days To Due Date
  3. End Of Month
  4. Specific Due Date

Examples of due dates considering different configurations, the Use Commercial Year check box is not selected:

  Invoice Date Number of Free Delivery Months Days to Due Date End of Month Special Due Day 1 Special Due Day 2 Special Due Day 3
Settings: 2003-01-01 0 10        
Result:     2003-01-11        
Settings: 2003-01-01 0 10

X

      
Result:     2003-01-11 2003-01-31      
Settings: 2003-01-01 0 20

X

 5    
Result:     2003-01-21 2003-01-31 2003-02-05    
Settings: 2003-01-01 0 20

X

 10 20 30
Result:     2003-01-21 2003-01-31     2003-01-30
Settings: 2003-01-01 0 40

 

 10    
Result:     2003-02-11   2003-02-10    

Prerequisites

This activity has the following prerequisites: 

System Effects

As a result of this activity:

Window

Payment Term

Related Window Descriptions

Payment Term

Procedure

To perform this activity, follow these steps:

  1. Open the Payment Terms window and find the existing payment terms.
  2. Select a payment term, right-click and then click Payment Term. You can also reach the Payment Term window directly from the navigator.
  3. Click the table and select New.
  4. Enter a number for the installment. It is the successive number of each installment. The rows are sorted by the Installment Number field.
  5. Enter the day of the month from which the installment becomes valid in the Day From field. If you are entering the first payment term detail line for a specific installment the value here should be 1.
  6. Enter the day of the month to which the installment will be valid in the Day To field. This value should always cover values up to 31 for a same installment number.
  7. Enter the data you want to base the due date on. See the table above for examples. The Days to Due Date field is mandatory.
  8. Enter a percentage for each installment in the Net Amount Percentage field. The total amount for all installments must be 100.
  9. Select a payment method, using the List of Values, if you want to connect one to the installment.
  10. Note that the Discount Specified check box is automatically updated if there is a discount for the payment term details entered in the current row.

If you want to create several installments automatically, right-click in the header and then click Automatic Installment Plan. The net amount percentage value will be the same for all installments with a total sum of 100. The data can be edited after this is done. This has to be completed before any installments are created.