Order header-based installments

Order header-based installments 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 invoice on a first invoiced, first settled basis. Using this procedure, all lines of a sales order must have the same tax code.

Installment master data and procedure

To specify, maintain, and view installments:

  1. Select the Installments Implemented check box and specify the installment parameters on the Installments tab of the Sales Order Parameters (tdsls0100s400) session.
  2. Enter a sales order and specify Direct Settlement or Indirect Settlement in the Installments field of the Sales Order (tdsls4100m900) session.
  3. Add the sales order lines and click Installments on the appropriate menu of the Sales Order (tdsls4100m900) session.
  4. In the Sales Order - Installments (tdsls4600m100) session, specify an installment schedule for the sales order.
  5. After the goods are delivered and all nonguarantee installments are invoiced, close installments in the Sales Order - Installments (tdsls4600m100) session. Next, invoices can be created for guarantee installments.
  6. Process installments in the Process Delivered Sales Orders (tdsls4223m000) session.
Note
Installment settlements

Invoiced installments are settled (subtracted from the goods amount) if the goods are delivered and the goods invoice is printed. Settled amounts indicate the amount of the goods invoice that is covered by the installment.

Settlement types

The following types of settlement exist:

  • Direct Settlement
    Delivered goods can be invoiced although 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 visible in Invoicing after the sales order installment is closed.
    • Turnover of the goods is 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 specified 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, the settlements for the invoiced installments are displayed in this session.

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.
Installment corrections

Settled amounts, which indicate the amount of the goods invoice that is covered by the installment, are the basis for calculating 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.

A correction installment is created only 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 Invoice, Correction - Advance Payment Request, Correction - Normal, or Correction - Guarantee is created.

Correction advance installments or Correction - Normal installments can be specified only after the original installments are composed or invoiced. In this way, Invoicing can always retrieve the correct currency information. Correction - Guarantee installments can be specified 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. 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 specified correction installments are settled against the goods invoice.

Example
LineInstallment typeInstallment amounts
1Normal200
2Normal400
3Normal-50
4Guarantee300
Total sales order installment850

 

LineSales order amounts
1150
2500
380
4-10
Total sales order720

 

Direct settlement is applicable.

The correction process:

  1. Installment line one is invoiced. Invoice amount = 200.
  2. Installment line two is invoiced. Invoice amount = 400.
  3. Sales order line one is invoiced. The goods amount of 150 is settled against the invoiced installment line one.
    • Remaining goods amount to be settled = 150 - (150) = 0.
    • Invoice amount = 0.
  4. Installment line three is invoiced. Invoice amount = -50.
  5. 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.
  6. The correction installment is invoiced. Invoice amount = -130.
  7. Correction installment line five is manually created for the guarantee installment. Correction amount = -300.
  8. Correction installment line six is manually created and is of the normal installment type. Correction amount = 170.
  9. Installment line four is invoiced. Invoice amount = 300.
  10. Sales order line two is invoiced. The goods amount of 500 is settled against the invoiced installments as follows:
    1. Against installment line three for an amount of -50. Remaining goods amount to be settled = 500 - (-50) = 550.
    2. Against installment line five for an amount of -300. Remaining goods amount to be settled = 550 - (-300) = 850.
    3. Against installment line one for an amount of 50. Remaining goods amount to be settled = 850 - (50) = 800.
    4. Against installment line two for an amount of 400. Remaining goods amount to be settled = 800 - (400) = 400.
    5. Against installment line four for an amount of 300. Remaining goods amount to be settled = 400 - (300) = 100.
    6. Against installment line six for an amount of 100. Remaining goods amount to be settled = 100 - (100) = 0.
    Invoice amount = 0.
  11. Sales order line three is invoiced. The goods amount of 80 is settled against the manually inserted installment line six.
    • Remaining goods amount to be settled = 80 - (70) = 10.
    • Invoice amount = 10.
  12. Sales order line four is invoiced. All installments are settled. Invoice amount = -10 + 10 = 0.

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