Products/Purchases/Instalment Plans

To Create an Installment Plan

1. From the Purchase Type page, select the Installment Plan option. The Installment Plan area will appear showing additional fields and information.
2. Select the required Product Category from the drop list.
3. Select the required Product from the drop list. The product price will display in the Base Price field.
4. Tick the Use Product Ledger Code tick box to assign the sale to the product ledger code set up in the product details.
5. If you wish to assign the sale to another ledger code, un-tick the Use Product Ledger Code check box. The Custom Ledger Code drop list will be enabled. Select the required ledger code from the drop list.
6. In the Installment Plan Configuration section, select the Installment Offcycle Payment Handling method required in the drop list. This option controls how the system processes customer payments that are made outside of the regular billing cycle.

   The options include:

   • Auto Prorata - the payment amount is automatically pro-rated resulting in the installment payment amounts being reduced.
   • Reduce Payments - the number of payments may be reduced but the installment payment amount will remain the same.
   • No Off Cycle Payments - off cycle payments are not permitted.
   • Off Cycle payment acts as credit off cycle - payments are treated as payment in advance and appear as a credit on the customer's account

7. Select the Invoicing Method required for the first installment from the drop list.

   The options include:

   • Create Invoice - a pending invoice will be created containing the first installment once the installment plan purchase is confirmed
   • Next Invoice - a pending cardline will be created for the first installment to be processed at the next bill run

8. If the product has been provided to the customer:
   1. Tick the Product supplied, payment to begin immediately check box. The Serial / Product Instance Code, Product Instance Description and First Installment Date fields will be enabled for entry
   2. Enter the product's serial number or other unique ID (e.g. IMIE etc) in the Serial / Product Instance Code field.
   3. Enter the description in the Product Instance Description field.
   4. Enter the date the first installment of the plan is due in the First Installment Date field. A calendar tool will appear to allow you to select the required date.

   Note : The installment plan processing will not commence until the product has been provided to the customer. You can use the View / Manage Installment Plan function to update the details after the instalment plan has been saved.

9. Select a pricing method to apply to the product from the Installment Pricing Method option radio buttons. The system provides a variety of methods to calculate the final product total and installment payment amounts based on a several attributes as follows:

   • Specify markup percentage, total amount of installments, and the installment period length
   • Specify markup percentage, amount per installment, and the installment period length
   • Specify total cost, total amount of installments, and the installment period length
   • Specify total cost, amount per installment, and the installment period length.

10. Depending on the Installment Pricing Method option selected, the system will enable or disable the Installment Details fields. The product Base Price will display showing the original base price, which cannot be modified.

    • For the Specify markup percentage, total amount of installments, and the installment period length and Specify markup percentage, amount per installment and the installment period length pricing methods, enter the markup percentage in the Markup field. For no markup, you can leave the value as zero (0).
    • For the Specify markup percentage, total amount of installments, and the installment period length and the Specify total cost, total amount of installments, and the installment period length pricing methods, enter the number of installments for the plan in the Total Installments field. The system will automatically create the specified number of payment installments on the subsequent customer's invoices until the installment plan is complete.
    • For the Specify markup percentage, amount per installment and the installment period length and the Specify total cost, amount per installment, and the installment period length pricing methods, enter the amount of each installment payment in the Charge per Installment field. The system will automatically create the payment installments of the entered amount on the subsequent customer's invoices.
    • For the Specify total cost, total amount of installments, and the installment period length and the Specify total cost, amount per installment, and the installment period length pricing methods, enter the total cost for the product including any additional fees or charges in the Final Cost for Installment Plan field. The system will use this figure to calculate each payment installment amount.

11. Select the frequency of the installment payments from the Installment Period Length drop list. Options include 1, 3, 6, 9, 12, 18, 24 and 36 months.
12. Click the Continue button. The Purchase page will display showing all details of the installment plan entered.
13. Review the information to confirm it is correct.
14. Click the Create Installment Purchase button. A message will display at the top of the screen showing "Installment Plan created".
15. To return to the Installment Plan page to make changes, click the Modify button.

See also

• Outright Purchase
• Product Purchase
• Products
• Product Pricing