Installments

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.

For more information, refer to:

• Order header-based installments
• Prorate-based installments