Prorate-based installments

Prorate-based installments 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 into one invoice for the customer. Using this procedure, the lines of a sales order can include different tax codes.

Installment master data and procedure

  1. Select the Installments Implemented check box and specify these parameters on the Installments tab in the Sales Order Parameters (tdsls0100s400) session:
    • Goods Acceptance Date Mandatory for Guarantee Installments
    • Include Additional Costs in Installments
  2. Specify installment plans in the Installment Plan (tcmcs2645m000) session.
  3. Link an installment plan in the Installment Plan field of the Invoice-to Business Partners (tccom4512m000) session.
  4. Specify a sales order and lines in the Sales Order (tdsls4100m900) session and specify these fields:
    • Select Installment Plan in the Invoicing by Installments field.
    • Specify an installment plan in the Plan field.
  5. Save the sales order, which initiates the generation of installments based on the installment plan in the Installments (cisli8620m000) session. To start this session click Installments on the appropriate menu in the Sales Order (tdsls4100m900) session.
  6. Approve the sales order. Consequently, the linked installment lines are also approved.
  7. Transfer the installment lines to Invoicing in the Installments (cisli8620m000) session. Consequently, billable installment lines are created and the installments are prorated across the sales order lines.
  8. Invoice the installments in Invoicing.
  9. Release the sales order lines to Warehousing in the Release Sales Orders to Warehousing (tdsls4246m000) session. The advance installments must be paid to release a sales order line to Warehousing.
  10. Release the sales order lines to Invoicing in the Release Sales Orders/Schedules to Invoicing (tdsls4247m000) session. Except for Guarantee installments, the prorate installments must be invoiced to release a sales order line to Invoicing.
  11. Process the sales order in the Process Delivered Sales Orders (tdsls4223m000) session. The installments must be closed to process a sales order.
Note: 
  • Installments are invoiced, settled, and corrected in Invoicing.
  • Guarantee installments can be transferred to Invoicing in the Installments (cisli8620m000) session, only after the sales order lines are delivered and invoiced.
  • If a sales order line is modified, the linked billable installment lines must also be updated. However, the lines cannot be updated if they are too far in the process. Settlement and correction installments are used to handle the differences.
  • The settlement of the advance installment invoice with the goods invoice is also prorated to each order line.
  • If the installment invoice cannot be completely settled with the goods invoice, correction installments are generated when the installments are closed.

Settlement example

  Line Item Quantity Price Amount Tax
SO line 1 I1 600 1 600 10%
SO line 2 I2 200 2 400 10%

An Advance Invoice installment is created for 20% of the order amount (1000*20% = EUR 200):

  Line Item Quantity Price Amount Tax Total Settlements Amount Due
Advance 1 (20%) 1       200 20     220

Sales order lines 1 and 2 are both shipped and invoiced.

Settlements:

  Line Item Quantity Price Amount Tax Total Settlements Amount Due
Settlement Invoice 1 ( SO line 1) 1 I1 600 1 600 60 660 132 528
Settlement Invoice 2 ( SO line 2) 1 I2 200 2 400 40 440 88 352

Correction example

Invoiced Installment Sales order line changes Corrections in billable installment
Seq. Amount Seq. Amount User Action Seq. Amount Action
1 100 1 100 Canceled 1 -100 Credit
2 200 2 250 Changed 2 50 Debit
    3 200 Added 3 - No action
    3 200 Canceled 3 - No action
    4 50 Added 4 50 Debit
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