Create Payment Plan for Customer

This instruction explains how you create a customer payment plan, either based on existing invoices or some kind of agreement.

Outcome

A payment plan is created, defining how and when payment should be made, whether fees should be applied and whether interest should be calculated for the payment.

Use the plan as a basis for creating customer invoices automatically in 'Customer Invoice. Create fr Payment Plan' (ARS380).

You can also print the plan in 'Payment Plan. Print' (ARS570).

Accounts receivable and the general ledger are updated.

For payment plans based on agreements, account entries are created for accounts receivable (customer claims).

For plans based on invoices, the original invoice is still open for payment. However, it has received block code 9, that is, it is blocked from being included in the reminder, interest invoicing and collection routines.

Before you start

Define at least one interest ID in 'Interest ID. Open' (ARS007). This ID is a set of values that control how interest is calculated automatically when processing the payment plan in (ARS390).
For type 2 payment plans, there must be open invoices in accounts receivable.

Follow these steps

Select Type of Payment Plan

Select one of these alternatives:
- To base the payment plan on an existing invoice, go to step 2
- To create a payment plan that is not based on an existing invoice, go to step 5.
Start Registering Payment Plan Based on Invoice
Select 'Accounts Receivable. Display' (ARS200).
Select 'Open' for the invoice that you can split into several payments.
On 'Customer Invoice. Change' (ARS201/E), press F16='Payment plan' to start 'Payment Plan. Open' (ARS390/E). Go to step 9.

Start Registering Payment Plan Based on Agreement
Start 'Payment Plan. Open' (ARS390/B).
Set the panel sequence.

This instruction is based on sequence EF1.
Select one of the two sorting orders:
- 1 = Per year, payment plan ID, payer, payment plan type, and status
- 2 = Per payer, year, payment plan ID, type, and status.
Specify the values corresponding to the sorting order selected, with the exception of status, and click New.

Define Basic Data for the Plan
In (ARS390/E), review the data retrieved either from the original invoice or the customer file.
Enter or adjust the following required values: Payment terms, total amount; exchange rate type, invoice rate, currency, voucher text, the name of the contact person at the company, description of the plan (this description is then printed on each invoice created from the plan), and payment method.
Enter or adjust the following optional values: Cash discount terms; abbreviated name; VAT code.
Select one of these alternatives:
- To distribute the separate payments automatically, go to step 13
- To distribute each payment manually, go either to step 14 or to step 15.
Automatically Distribute Payments
To distribute the separate payments automatically, specify these values: Start date, finish date, number of payments into which the total amount should be split, payment frequency between start date and finish date, payment day(s) within each period, monthly or weekly interval, and biweekly interval. Press Enter.

Refer to the Parameters to set section for information on required combinations.

Define Administration Costs and Interest
On (ARS390/F), specify any of these optional values: Interest ID, administration fee and arrangement fee, together with VAT codes. Press Enter.

Register/Adjust Payment Records
On 'Payment Plan. Open Details' (ARS391/B) (ARS391/B), select one of these alternatives:
- To register a new payment, specify a payment date and click New
- To adjust an existing record, select option 'Open' for it.
On (ARS391/E), specify payment amount (required) and adjust the proposed payment method, if needed. Press Enter to return to the B panel.

On (ARS391/E), specify payment amount (required) and adjust the proposed payment method, if needed. Press Enter to return to the B panel.
Repeat the two previous steps until the total amount is distributed completely. Press F3 to end.

Parameters to set


Program ID/Panel	Field	The field indicates …
(ARS390/B)	Sorting order	... how the information is displayed on the panel. Valid Alternatives 1 = Year, payment plan ID, payer, payment plan type 2 = Payer, year, payment plan ID, payment plan type.
(ARS390/B)	Year	… the year of the payment plan. If the plan is not based on an agreement (type 1), this field denotes the year in which the plan was created. If the plan is based on an existing invoice (type 2), the field denotes the accounting year in which that invoice was recorded.
(ARS390/B)	Payment plan type	… the basis for the payment plan. Valid Alternatives 1 = Not based on a previously recorded invoice 2 = Based on an existing, recorded invoice. For information on difference in outcome, see the Results section.
(ARS390/B)	Payment plan – header status	… how the payment plan is processed. Valid Alternatives 0 = The plan is open 1 = One or several payments scheduled for certain dates are in progress or finished 9 = All the payments are closed.
Values for Automatic Distribution of Payments
(ARS390/E)	Start date	… the date which is used as the start date for calculating how payments should be distributed automatically.
(ARS390/E)	Finish date	… the last day a payment can be made using the automatic distribution.
(ARS390/E)	Number of payments	… the number of separate payments into which the total amount of the payment plan will be split.
(ARS390/E)	Payment frequency	… the payment frequency between the start date and the finish date. Valid Alternatives 01 = Daily; 02 = Weekly; 03 = Monthly; 04 = Twice a week; 05 = Twice a month. Comments If you select alternative 01, you must enter the number of payments. Payment starts on either the payment date (when set), or on the start date. If you select alternative 02, you must enter the number of payments, the payment date, and a monthly/weekly interval. For example: The start date is July 1, the payment date 03, and the monthly/weekly interval 01. The first payment is then made on July 3, the second is made seven days later on July 10, and so on. If you select alternative 03, you must enter the number of payments, payment date, and monthly interval. If you select alternative 04, you must enter the number of payments, payment date, and twice weekly interval. Example: The start date is July 1, the payment date 03, and the twice weekly interval 3. The first payment is then made on July 3, the second payment on July 6 (in the same week). Payments the following week are made on July 10 (July 3 + 7 days) and July 13 (July 10 + 3 days), and so on. If you select alternative 05, the number of payments, payment date, and payment date 2 must be set. Note that if the actual date for payment is not a bank day, it is automatically adjusted to the nearest bank day according to the system calendar.
(ARS390/E)	Payment day	… on which date in a period the payment will be made.
(ARS390/E)	Payment day 2	… the second payment date in a period. When you use frequency Twice a month, you have to enter 'Payment day' and 'Payment day 2' as the two days in one month.
(ARS390/E)	Monthly/Weekly interval	… either the monthly interval or the weekly interval between each payment (depending on frequency type). The valid alternatives are 1-99: 1 = One month or one week 2 = Two months or two weeks 3 = Three months or three weeks. Etc.
(ARS390/E)	Biweekly interval	… the number of days between the first and second payment date. This field is used if you have selected frequency Twice a week.
Fees
(ARS390/F)	Interest ID	… a set of values that control how interest is calculated when using a payment plan in (ARS390).
(ARS390/F)	Administrative fee	…an extra charge added to each invoice based on the payment plan to cover administrative costs.
(ARS390/F)	Arrangement fee	… an initial fee for creating the payment plan that is added to the first invoice created, based on the plan.
Payment Status
(ARS390/B)	Recurring payment – line status	… the status of a payment record in the plan. Valid Alternatives 0 = Payment not made 1 = Payment in progress 9 = Payment is made.