| | InstallmentsInstallment invoicing is used to generate invoices for partial amounts or percentages of
the total net amount before or after the ordered goods are delivered for a
sales order. To create the installments, installment lines are linked to the
sales order. Installment types The installment type determines when an installment line is added to an invoice. Advance invoice installment An Advance Invoice must be paid for by the sold-to business
partner before goods can be delivered. The invoice is a legal document. Advance payment request installment An Advance Payment Request is a request to a sold-to
business partner to pay a certain amount or percentage in advance before goods
can be delivered. No tax is calculated and the invoice is not a legal document.
This type of installment can be used only for order header-based
installments. Normal installments Normal installments are invoiced before or at the delivery of goods. Guarantee installments Guarantee installments can only be invoiced after all goods are delivered and the
nonguarantee installments are invoiced.
Installment procedures In LN,
these installment procedures are supported: Order header-based installments Installments that are created and invoiced without a link to
the sales order lines. When order lines are invoiced, the settlement process is
used to link the order line invoices to the already invoiced installment on a
first invoiced, first settled basis. If you use this procedure, all lines of a
sales order must have the same tax code. Prorate-based installments Installments that are generated based on an installment plan. When an installment is transferred to Invoicing, the installment
is prorated across the order lines by creating multiple billable lines. These
billable lines are handled together and result in one invoice for the customer.
If you use this procedure, the lines of a sales order can include different tax
codes.
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