You should make a selection with open items to see whether they can be converted to an installment plan.
In Collections/Disbursements a standard logic in the dunning area and in the German insurance contract law is pursued to define the relationship to the business partner. If a payment is overdue, you must decide whether you want to create an installment plan that will keep the customer bound to the company, or if you want to make use of this inability to pay to terminate the business relationship with the business partner.
Initial premiums are never converted to installment plans.
However, subsequent premiums can ibe converted to an installment plan.
The procedure described below has been selected to implement this logic in Collections/Disbursements.
In Customizing for dunning procedures you can assign an alternative dunning procedure to every dunning procedure (see
This alternative dunning procedure is transferred to the items that are generated when an installment plan is created (event 3000 in the installment plan: Collections/Disbursements: adds additional fields to the document items in the installment plan). Items that bear a key for a dunning procedure for which no alternative dunning procedure has been defined (this would be the case with first premium dunning procedures) must not be included in an installment plan.
With the
complete dunning
you must ensure that items are suppressed when converting to an installment plan, if there is an active initial premium dunning procedure for the contract to which these items are assigned.
If an initial premium dunning procedure has been agreed in relation to an insurance contract, or if an initial premium dunning procedure is already in progress, the subsequent receivables from this contract must not be converted to an installment plan.
With
individual dunning
it is not necessary to suppress further items, as all items here are seen independently of one another.
The following procedure has been selected for
contract dunning
: As long as an initial premium procedure exists, no later items are converted to an installment plan.
This procedure ensures that only receivables from subsequent premiums - though not all receivables from subsequent premiums- can be included in an installment plan (technical conversion occurs at event 3020).
If open items should not be included in the installment plan on the basis of the above conditions, a warning message is displayed.
You should make a selection with open items to see whether they can be converted to an installment plan.