How LN generates contract installments

LN generates contract installments when:

  • A service contract is activated.
  • A contract change is closed.

When a contract is activated or renewed, LN generates the installments for each configuration, based on:

When an indexation or an incidental change is closed, LN either adjusts installments or generates new installments that reflect the resulting differences in the cost and sales amounts.

LN generates new installments when:

  • A new configuration is added
  • The expiry date on the configuration line is extended. LN generates installments after the previous expiry date on the configuration line.
  • A penalty amount is specified. For the penalty amount, LN creates a single installment.

In all other cases, LN adjusts the existing installments with status Free that cover the duration from the change effective date until the expiry date of the configuration. Any contract discount amount is also adjusted.

Note

If the installment status is already Accepted, the following applies:

  • If the difference results in an increase, LN creates a new installment for the same planned invoice date.
  • If the difference results in a decrease, LN creates a credit note. All Free installments that fall after the configuration expiry date are canceled.
Impact of Indexation or Incidental Changes on Installments when Contract Change is Activated.

When indexation or incidental change is activated, the indexed amount is split between the installments that meet the following criteria:

  • Installments with status Free in the Contract Installments (tsctm4100m000) session
  • Installments which have start date in the Effective Date field ( in the Contract Installments (tsctm4100m000) session) that is equal to or greater than the Change Effective Date (in the Contract Changes (tsctm3120m000) session).

The indexed amount is not split between the installments that are manually created.

There are no installments with status Free in the Contract Installments (tsctm4100m000) session, when the Indexation or Incidental change is applied. LN, generates a new installment with the indexed amount in the Contract Installments (tsctm4100m000) session on the activation of the contract change. The Planned Invoice Date for the new installment is same as the Change Effective Date in the Contract Changes (tsctm3120m000) session.

if the Indexation amount or Incidental change amount is not zero, LN adds the amount to the installment amount. Thereafter, the indexation / incidental change amount is reset to zero.

The status of the installment can be changed only when:

  • When the indexation amount or incidental change amount is zero. The status of the Installment can be changed to following:
    • Accepted
    • Canceled
  • The contract change is activated.

Related topics