Installment Payment

[Former Member]

Hi,

Can any one provide me the confirguation document for Installment payment plan.

Yogesh

ISU - FICA

[Former Member]

For configuring Installment Plans Please read following points

Path for config from point 1-7

SPRO-> Contract Account Receivable and Payable -> Business Transactions -> Deferral and Installment Plan.

You will get documentation as well there.

1. You need to define Installment Category in transaction FQZQ.This can be any generic name.

2. Define Installment Plan type: ( Steps a-l )

a) Name your own Installment Plan Type.

b) Assign Installment Category to it which you will create in Step 1.

c) Assign Interval Type whether you want to have installment due date interval in weeks , days or months

d) Specify Interval Length:That is how many weeks, months days gap needs to be there in due dates of 2 installments.This depends on interval type u have selected.

If interval type is in month then interval length of 1 will mean due date for each installment will be with a gap of one month.

e) No of installments in a installment plan type

f) You can also maintain an alternative sub transaction for installment plan but you need to do necessary config for that sub trans udner installemnt main trans.

g) Rounding Amount: The individual installment amounts are rounded to a multiple of this amount. Residual amounts that result from the rounding process are added to the first, last, or to a new installment

h) Installment amount: here you can actually fix the installment amount.This is the amount of the individual installments. The installment amount can be entered as an alternative to the rounding amount and to the number of installments.

i) Charge amount: This is if the company wishes to charge something for setting customer on installment plan.

j) Currency:

k) Remaining or Residual amount to:

Controls the distribution of the residual amount when you create an installment plan.

When you calculate the amount of the individual installments of an installment plan, there may be a residual amount. You can distribute this as follows:

Add it to the first installment

Add it to the last installment

Create a separate installment

If you do not enter a value here, the residual amount is automatically added to the last installment

l) Distribute Check box: Distribute Interest/Charges to all Installments.Determines for an installment plan whether installment interest or charges are to be distributed across all installments.

3. Define Default Values for Installment Plan Charge:

here you define FICA document type for charges or fees to be posted to customer's account for putting him on installments plan for receivables.

4. Define Default Values for Interest on Installment Plans:

Here you define a document type and a interest key for the interest calculation on installment plans. You are provided with these default values when calculating the interest on an installment plan. When calculating the interest, the interest is calculated from the starting date to the due date of the individual installment payment.

Note: If you dont want to charge interest on Installment plan but on original items ( FICA documents ) included in installment plan.You need to check the check box for Calculation of interest on the original items for cleared installment plan items using path:

:Business Transactions -> Interest Calculation -> Item Interest Calculation -> Activate Additional Functions for Interest Calculation.Here there is

5. Define Deactiavtion Reasons for Installment plans: Here the deactiavtion reason for installment paln is defined.For eg: There can be manual deactivation of plan or plan can be deactivated automatically through dunning run.Maintain at least one deactivation reason for manual deactivation and one additional deactivation reason for deactivation of the dunning run.

You can charge interest or not chanrge interest on creadit memo of installment plan depending on deactivation reason.

6. You can also put charges on source items in installment plan using the config:Charge on Source Item in Installment Plan under deferral and installment plan header in SPRO.

7. You can set Default Values for Installment Plan: ( a-d )

a) Default doc type for installment plan

b) Default Deactivation reason

c) Default Print Type: Immediate , No print etc.

d) Display Dialog Box for Print Range when Saving

This has the effect that every time you create an installment plan, a dialog box appears in which you can define the details for printing letters and payment forms for installment plans.

Must for Installment Plan to work:

For making all the above things working one needs to do:

1. Complete Central setting for posting for Installment Plan in ---:

SPRO-> Contract Account Receivable and Payable -> Basic Functions -> Posting and Document -> Basic Settings -> Maintain Central settings for posting.here you need to select Installment Plans used and Documents with Repetitions are possible

2. In the Customizing settings for transactions, you must set the installment plan transactions, the allocation to internal transactions, assignment of the statistical

transactions for installment plan charges, and account determination.

Do let me know if you have any queries

Reward points if useful

Edited by: Pratyasha Shishodia on Mar 26, 2008 9:52 AM

[Former Member]

Thanks a lot

Yogesh

[Former Member]

Hi Pratyasha,

Please, can you describe briefly the use/business scenario for this Deferrals & Installment Plan functionality?

I am trying to find a work around for installment payment term with fixed amount instead of % (txns OBB8 and OBB9)

any feedback would be highly appreciated,

thanks