Installments

Invoicing by installment enables you to send invoices for partial amounts or percentages of the total net amount before or after the ordered goods are delivered for a sales order. To indicate the installments, you must add installment lines to the sales order.

Installment types

It depends on the type of installment, when an installment line is placed on an invoice. The following installment types exist:

Advance
Advance payments must be invoiced and paid for by the sold-to business partner before goods can be delivered.
Normal
Normal installments are invoiced before or at the delivery of goods.
Guarantee
Guarantee installments can only be invoiced after all goods are delivered and the non-guarantee installments are invoiced.

Installment settings

Take the following steps to define, maintain, and view installments:

Specify the installment parameters on the Installments tab of the Sales Order Parameters (tdsls0100s400) session.
Enter a sales order and set the Invoicing by Installments field to Direct Settlement or Indirect Settlement in the Sales Order - Lines (tdsls4100m900) session.
After sales order lines are added, click Sales Order - Installments on the appropriate menu of the Sales Order - Lines (tdsls4100m900) session. As a result, the Sales Order - Installments (tdsls4600m100) session starts in which you can enter an installment schedule for the sales order.
Close installments in the Sales Order - Installments (tdsls4600m100) session. After all goods are delivered and all non-guarantee installments are invoiced, the installment can be closed. Next, invoices can be created for guarantee installments.
Process installments in the Process Delivered Sales Orders (tdsls4223m000) session.

Note

You can create default installment schedules in the Installment Schedule (tcmcs2640m000) session. After creation, you can use these schedules for copying them to sales order installments.
The Update Paid Amounts on Advance Installments (tdsls4200m000) session updates the paid amounts for Advance installments. When all advance installments for a sales order are fully paid for, the sales order procedure can continue.

Installment settlements and corrections

Invoiced installments are settled (subtracted from the goods amount) when the goods are delivered and the goods invoice is printed. Settled amounts, which indicate the amount of the goods invoice that is covered by the installment, form the basis for calculation of the installment corrections. The correction amount, which is calculated when a sales order installment is closed, is the difference between the total invoiced installment amount and the settled goods invoice amount. It is calculated as follows:

Goods amount to be invoiced - installment amount to be settled.

Note

A correction installment is only created if the goods amount to be invoiced is less than the installment amount to be settled. In this case, the amount for which the customer is invoiced is too high and a reverse Correction - Advance, Correction - Normal, or Correction - Guarantee is created.
Correction - Advance or Correction - Normal installments can only be entered after the original installments are composed or invoiced. In this way, Invoicing can always retrieve the correct currency information. Correction - Guarantee installments can be entered before the original installment is released to Invoicing, because guarantee installments are handled after the goods are shipped and the sales order installment is closed. However, the Correction - Guarantee installment line cannot be released to Invoicing before the original Guarantee installment is released to Invoicing. In this way, when composing the invoice for the correction guarantee, the correct invoice information can be retrieved from the original guarantee.
Manually inserted correction installments are settled against the goods invoice.

The following types of settlement exist:

Direct Settlement
Delivered goods can be invoiced when not all installments are invoiced yet. When the goods are invoiced, the invoiced amounts on the installment lines are subtracted from the goods amount on the invoice.
With direct settlement, the following are immediately visible:
- Revenue from the sale of goods in Invoicing.
- Turnover of the goods in the Sales Order Actual Delivery Line History (tdsls4556m000) session.
Indirect Settlement
Delivered goods cannot be invoiced before the sales order installment is closed. When the order is closed, the invoiced amounts on the installment lines are subtracted from the goods amount on the invoice.
The following are applicable for indirect settlement:
- The revenue from the sale of goods is only visible in Invoicing after the sales order installment is closed.
- Turnover of the goods is only logged in the Sales Order Actual Delivery Line History (tdsls4556m000) session after the sales order installment is closed. If the sales order installment is not closed yet, in the Sales Order Line History (tdsls4551m000) session, turnover is temporarily booked on the Item for Advance Payment Installments, Item for Normal Installments, or Item for Guarantee Installments, as defined in the Sales Order Parameters (tdsls0100s400) session.

You can view the settlements for an installment in the Installment - Settlements (tdsls4513s000) session. After the goods invoice is printed in Invoicing, this session displays the settlements for the invoiced installments.

Note

Guarantee installments are settled before they are invoiced, because they are always invoiced after the goods invoice is sent.
When invoicing a (+) sales order line, the (-) installments are first settled up to the total installment amount.
When invoicing a (-) sales order line, the (+) installments are first settled up to the total installment amount.

Example

Line	Installment type	Installment amounts
1	Normal	200
2	Normal	400
3	Normal	-50
4	Guarantee	300
Total sales order installment		850

Line	Sales order amounts
1	150
2	500
3	80
4	-10
Total sales order	720

Direct settlement is applicable.

Flow:

Installment line 1 is invoiced. Invoice amount = 200.
Installment line 2 is invoiced. Invoice amount = 400.
Sales order line 1 is invoiced. The goods amount of 150 is settled against the invoiced installment line 1.
- Remaining goods amount to be settled = 150 - (150) = 0.
- Invoice amount = 0.
Installment line 3 is invoiced. Invoice amount = -50.
The sales order installment is closed.
- Goods amount to be invoiced = 500 + 80 - 10 = 570.
- Installment amount to be settled = 50 + 400 - 50 + 300 = 700.
- Correction amount = 570 - 700 = -130.
The correction installment is invoiced. Invoice amount = -130.
Correction installment line 5 is manually created for the guarantee installment. Correction amount = -300.
Correction installment line 6 is manually created and is of the normal installment type. Correction amount = 170.
Installment line 4 is invoiced. Invoice amount = 300.
Sales order line 2 is invoiced. The goods amount of 500 is settled against the invoiced installments as follows:
1. Against installment line 3 for an amount of -50. Remaining goods amount to be settled = 500 - (-50) = 550.
2. Against installment line 5 for an amount of -300. Remaining goods amount to be settled = 550 - (-300) = 850.
3. Against installment line 1 for an amount of 50. Remaining goods amount to be settled = 850 - (50) = 800.
4. Against installment line 2 for an amount of 400. Remaining goods amount to be settled = 800 - (400) = 400.
5. Against installment line 4 for an amount of 300. Remaining goods amount to be settled = 400 - (300) = 100.
6. Against installment line 6 for an amount of 100. Remaining goods amount to be settled = 100 - (100) = 0.
Invoice amount = 0.
Sales order line 3 is invoiced. The goods amount of 80 is settled against the manually inserted installment line 6.
- Remaining goods amount to be settled = 80 - (70) = 10.
- Invoice amount = 10.
Sales order line 4 is invoiced. All installments are settled. Invoice amount = -10 + 10 = 0.