Payment Structure

Set type used to define the periods and one-time inflows and outflows for lease amounts.

You use the Payment Structure (CRM_PROD_FS007) set type to define the periods and one-time inflows and outflows for lease amounts. From a financial mathematics point of view, the payment structure has the character of a condition, and is the basis for determining the payment schedule in the business transaction. You use the payment structure to define the financial mathematics conditions (such as type and number of periods, payment frequency, as well as validity period) according to which payments are made in a leasing deal. You can configure the payment structure to meet the specific requirements of the lessee.

You can use the following functions within the payment structure:

Payment structures with annuities
Installment repayment structures
Deferral of repayments and interest in the payment structure
Broken periods with settings for pro-rated calculations
Different payment frequencies for interest payments and repayments
Weekly payments in the payment schedule
Up to three concurrent fees in the payment schedule
Working day shift based on financial mathematics

Note Note

You have defined external flow categories, assigned these to internal transaction types, and defined condition functions for the flow categories.
For more information, see Customizing for Financial Services under Leasing Financial Mathematics Settings Define Flow Categories .

You have defined the possible payment frequencies and payment methods.

For more information, see Customizing for Financial Services under Leasing Financial Mathematics Settings Settings for FIMA Conditions Edit Payment Frequency .

End of the note.

When you enter a financial service product (FS product), you make the following settings for the payment structure:

Flow Category: Controls the process flows within the financial mathematics algorithms. You must define at least one flow category for each payment structure.
Date Rule From; Date Rule To; Number of Periods:
- Date Rule From: The system uses this date rule to calculate the start date of the payment step. It interprets the date rule in the business transaction.
- Date Rule To: The system uses this date rule to calculate the end date of the payment step. It does not interpret the date rule until the business transaction.
- Number of Periods: Specifies the timeline of a periodic condition.
  
  Note
  You enter this information for periodic conditions only, not for one-time flows.
  
  End of the note.
  Note
  You must ensure that the chronological framework of the periodic conditions can be clearly determined. To do this, you must enter the following information for a periodic condition:
  Option 1: Enter Date Rule From and Date Rule To (for broken periods, for example).
  
  Option 2: Enter Date Rule From and the number of periods (for regular periods, for example).
  
  Option 3: Enter the number of periods without a Date Rule From and Date Rule To. However, this is possible only if you have entered a previous periodic condition (from the same FIMA condition group) (in the case of step payments, for example).
  End of the note.

Date Rule for Due Date: The system uses this date rule to calculate the due date of the payment step. The system interprets the date rule in the business transaction. You must enter the date rule for the due date for one-time flows. The system automatically calculates the due date and the calculation date in the business transaction for periodic conditions. In this case, you do not have to enter the date rule for the due date.
Payment Frequency: Consists of the time unit (month, quarter, year) and the form of payment (in advance, mid-period, in arrears). You enter the payment frequency for periodic conditions only.
Default: Indicates that the system transfers the step of the payment structure to the business transaction. You can change the settings in the business transaction in the standard system. When you use the FS product in a business transaction, note the following: The system adopts all entries for the payment structure that you have selected as standard. You can make further entries, and multiple assignments are possible.

The system uses the payment structure, date set, and pricing conditions to calculate the current data. You can changes these settings in the business transaction.

Example

Example 1: Annuity lease with a term of 24 months (in arrears) and a broken period at the start (for NEWL, for example)

Flow Category	Number of Periods	Payment Frequency	Default	Date Rule From	Date Rule To	Date Rule Due Date
Loan Amount			X			Contract Start Date
Residual Value			X			Contract End Date
Payment: Installment		Monthly in Arrears		Contract Start Date	Billing Plan Start Date
Payment: Installment	24	Monthly in Arrears

Example 2: Annuity lease with a term of 12 months (in advance) (for NEWL, for example)

Flow Category	Number of Periods	Payment Frequency	Default	Date Rule From	Date Rule Due Date
Loan Amount			X		Contract Start Date
Residual Value			X		Contract End Date
Payment: Installment	12	Monthly in Advance	X	Contract Start Date

Example 3: Constant repayment lease with a term of 12 months (in advance) (for NEWL)

Flow Category	Number of Periods	Payment Frequency	Default	Date Rule From	Date Rule Due Date
Loan Amount			X		Contract Start Date
Residual Value			X		Contract End Date
Payment: Interest	12	Monthly in Advance	X	Contract Start Date
Payment: Installment	12	Monthly in Advance	X	Contract Start Date

Example 4: One-time fee only (for terminating change processes, for example)

Flow Category	Number of Periods	Payment Frequency	Default	Date Rule From	Date Rule To	Date Rule Due Date
One-Time Fee (Fixed Amount)			X			Contract Start Date