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 Creating Installment Plans

Use

You create an installment plan when both of the following apply:

  • There are one or more open items on the contract account of a business partner.

  • The business partner is unable to meet his/her payment obligations in accordance with the usual payment rules.

Prerequisites

To be able to prioritize the clearing of original items when payments are received, you set the Clrg Priority (clearing priority) indicator. You do so in Customizing for Contract Accounts Payable and Receivable under Start of the navigation path Business Transactions Next navigation step Deferral and Installment Plan, Next navigation step Activate Additional Installment Plan Enhancement End of the navigation path .

Features

When you calculate interest, the system creates an interest document automatically. When you enter a charge amount, the system posts a document for the installment plan charges. During posting, interest and charges documents are automatically transferred to the installment plan for the original receivables (see Charging Interest and Surcharges for Installment Plans ).

Note Note

When you create an installment plan, the system copies the company code, contract, business area, and business place from the original item (in the standard system), as long as these fields have the same value in all original items selected. If you do not want to fill these fields in the installment plan, or want to enter other values, you can do this by defining event 3000 accordingly (see the documentation of the sample function module FKK_SAMPLE_3000).

End of the note.

The system can calculate the first installment as a percentage of the total amount of the installment plan. Enter the percentage in Customizing for Contract Accounts Receivable and Payable under Start of the navigation path Business Transactions Next navigation step Deferral and Installment Plans Next navigation step Define Categories for Installment Plan. End of the navigation path Activate the enhancement under Start of the navigation path Business Transactions Next navigation step Deferral and Installment Plans Next navigation step Activate Installment Plan Enhancement for Charges/Interest End of the navigation path .

When you use a suitable installment plan category, the system calculates the first installment as a percentage.

Activities

  1. Choose one of the following paths:

    • Role Start of the navigation path Process Outstanding Payments(SAP_FI_CA_OUTSTANDING_PAYMENTS) Next navigation step Create Installment Plan End of the navigation path

    • SAP Easy Access screen Start of the navigation path Account Next navigation step Installment Plan Next navigation step Create End of the navigation path

  2. Enter the selection criteria for open items and posting parameters.

  3. Choose Continue.

  4. Enter the installment plan parameters. You can either copy default values to the initial screen using the Installment Plan Type or enter the installment plan parameters manually. You must enter the installment interval and the interval type; you also have the option of entering an amount for the installment plan charges and the installment plan category, and a value for the Remaining Amount field.

    The system creates an installment plan proposal based on the parameters set. There are two ways to create an installment plan proposal.

    • Enter an amount in the Installment Amount field. The installment amount and the total sum of the source items determine the number of installments.

      You can also add partial amounts to the installment plan.

    • Enter values in the fields Rounding Amount and No. of Installments . The installment amount is calculated from the total sum of the original receivables, the rounding amount, and the number of installments. If you enter a rounding amount, the system automatically checks whether this amount complies with the rounding rules defined in Customizing.

      Regardless of whether you have the system create an installment plan proposal by entering the installment amount or by entering the rounding amount and number of installments, there may be a remaining amount when the individual installments are calculated. This is because the total of the individual installments must always equal the total of the original receivable (installment amount * number of installments + remaining amount = total of original receivable). In the Remaining Amount field, specify whether this remaining amount is to be included in the first or last installment, or in a new installment.

      If you set the Distribute indicator, the interest and charges are distributed over all of the due dates.

      A list of selected items appears.

  5. Select the open items that you want to include in the installment plan. The start date defines the due date of the first installment.

    You can assign numerical key figures in the Prio column. This enables you to influence the clearing priority of the selected original items when payments are received.

  6. Choose Continue. An Installment Plan Proposal appears, in which you can make the following changes:

    • Add installments

    • Delete installments

    • Calculate or delete interest

    • Create or delete an installment plan surcharge and/or an inflation surchargeThe prerequisite in this case is that you activated the enhancement in Customizing under Start of the navigation path Business Transactions Next navigation step Deferral and Installment Plans Next navigation step Activate Installment Plan Enhancement for Charges/Interest End of the navigation path .

      In the bottom right hand corner of the screen, a table appears with the most important account balances (such as open amount, due amount, installment plan, credit). If you select a balance, the account balance display appears and you can see the corresponding items.

  7. Save the installment plan.