To Use Installments

Follow the steps below to use installments in the Accounts Receivable system.  Each step is explained in more detail in this Key Concept.

1.   Set-up your payment terms through the Payment Terms Maintenance conversation.  You must define all payment terms through this conversation, including terms without installments.

2.   Set-up the appropriate payment terms codes on the following Reference File categories:  Customer Defaults (029), Accounts Receivable Defaults (300), and Customer Class Defaults (310).  Each code is used as a default value that can be overridden as follows:  the code on 029 is used when defining new customers, the code on 300 is used in A/R conversations with payment terms, the code on 310 is used on documents created for customers in a specific class.

3.   Set-up the payment term defaults for your customers through the Customer Master Maintenance conversation.  The payment terms for the customer are used as default values during invoice entry.  The payment terms will default from Reference File category 029 when you define the customers, but it can be overridden.

4.   Create an invoice through the Invoice and DR/CR Memo Entry conversation using a payment terms code with installments.  If you are using the Order Processing module, the Shipping and Billing conversation will also generate installments for invoices based on the payment terms.

5.   You can view the installments generated for an invoice by pressing F20 in the invoice entry conversation.  Each installment is identified by the invoice number and a three-digit suffix corresponding to the position of the installment in the payment plan.

Installments generated from Order Processing can only be viewed through the Accounts Receivable Inquiry conversation and cannot be maintained.

6.   Each installment is treated as a unique open item within the Accounts Receivable system.  The payment process will select and pay an installment like any other open item in the system.