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 Installment Plan


The installment plan allows the customer to pay in installments. With the installment plan the system creates one invoice for all installments. On the basis of this billing document you can print an invoice listing all the installments with the relevant payment dates and amounts to be paid by those dates.

The installments are calculated by the system by taking a percentage of the total invoice amount for each installment. These percentages can be defined by your system administrator. The system takes into account any rounding differences for the last payment date.

For each installment the system creates a customer line item in financial accounting.

The installments are defined by the payment terms, which are controlled by the payment terms key. Your system administrator can define the folloowing data for this key:

  • the number of installments

  • the payment dates

  • the percentage of the billling value

Example Example

A customer buys a washing machine for USD 1,000.00. The customer makes a down payment of 20% - USD 200.00 The remaining amount is paid in monthly down payments of 13,33% over six months.

Down payment :

1. February 1: USD 200

Monthly installments :

1. March 1: USD 133.33

1. April 1: USD 133.33

1. May 1: USD 133.33

1. June 1: USD 133.33

1. July 1: USD 133.33

1. August 1: USD 133,35

End of the example.

You can:

  • store the default payment terms key in the customer master record (on the Billing Sales Area screen, field: payment terms).

  • overwrite the payment terms key in the sales order header or item (menu path Header or Start of the navigation path Item Next navigation step Business data, Next navigation step field End of the navigation path Payment terms)

You can use the payment terms key to print a suitable text on the order confirmation.