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  Deferrals and Installment Plans


This component enables you to defer payment or arrange payment by installments for business partners who cannot keep up their payment obligations. If a deferral has been agreed, a deferral date is noted in the open item in addition to the due date. The deferral date has the effect that no dunning notices are sent and no payments are collected during the agreed deferral period. Once the deferral date has passed without payment being made, the open item is dunned and bank collection is executed again. If payment by installments has been agreed, you create an installment plan for the amount of the original receivable. The individual installments and their due dates are specified in the installment plan. You can levy charges for the facility of offering an installment plan. To avoid having due dates fall at the weekend or on public holidays, you can refer to the factory calendar when determining these dates. The individual installment, rather than the original receivable, is included in dunning and in the payment run.


If you are using the Item Interest Calculation component, you can calculate interest on the installment plan.


You can delete installments that have not yet been paid, and change the amount of an installment (repayment and interest) or the due date. You can add installments to an active installment plan. The sum of the installments in an installment plan must always be equal to the sum of the original receivables entered in the installment plan. Provided the installment plan is active, in the account balance display and the installment plan, you can call up the receivables in an installment. The document number of the installment plan is recorded in the original receivables, which ensures there is a link between original receivable and the installment plan. When an installment is paid, the payment is automatically spread over the source receivables. When the final installment of an installment plan is paid, both the installment plan and the original receivable are cleared by the payment program when the incoming payment is posted. Installments can be partially paid. If the agreement for payment in installments is canceled, you can deactivate the installment plan manually. This means that the original receivable becomes active again and the link between the original receivable and the installment plan is deleted. A deactivated installment plan cannot be reactivated, and no further payments can be assigned to the installment plan.

With appropriate Customizing settings for the insallment plan categories, when you create an installment plan, you can update the creditworthiness of the business partner concerned. With appropriate Customizing settings for the deactivation reasons, you can reverse the creditworthiness entries.

Industry ComponentUtilities(IS-U)

An installment plan can be deactivated automatically by the dunning run when a certain dunning level is reached. You define the forms for correspondence with business partners who have arranged to pay in installments with the Print Workbench component.