Establishing a Non-Interest Payment Plan
Home > Accounts Receivable > Establishing a Non-Interest Payment Plan
Process
This job aid describes steps for Establishing a Non-Interest Payment Plan and Verifying Payment Plan Print Status.
There are circumstances when installment billings for accounts receivable are appropriate; for example, an agreement with the customer to allow payments over time. When a customer requests and is approved to make installment payments on an outstanding receivable, the outstanding receivable is converted to a payment plan utilizing CORE Payment Plan Functionality.
To utilize CORE Payment Plan functionality, there must be no interest charged on the payment plans in the installment agreement. If interest charges need to be applied to the payment plan, an offline amortization schedule must be created to facilitate recording the payments inclusive of interest charges. In these installment billing cases, the CORE Payment Plan feature is not used.
Establishing a Non-Interest Payment Plan
When a customer is approved to extend payments of an outstanding receivable, a Payment Plan is established on the Payment Plan (PSCHD) page. The steps in this section assume that the Receivable (RE) document being referenced has been processed and submitted to a ‘Final’ Phase in CORE. Also, be sure to have the RE document’s Doc Dept (e.g., AAHA) and Doc ID (e.g., 0115140085) available before beginning these steps.
1. Enter PSCHD in the Global Search field
Select Payment Plan
2. Select Create.
3. Under the Payment Plan tab, enter
Transaction Code
Transaction Dept
Transaction ID
4. Select Create Method. The three methods are:
By Duration - Requires you to specify the Frequency with which payments will be made and the length of the payment plan.
By Amount - Allows you to specify the Payment Amount the customer will pay towards their outstanding debt, the Frequency, and a Start Date to indicate when the payments will begin.
Manual - Allows you to manually insert payment amounts and due dates.
5. Depending on the Create Method you have selected, complete the remaining fields:
Start Date, Number of Periods, Frequency, Payment Amount, First Due Date.
6. Select Save.
7. Once successfully Saved, click Create Schedule in the bottom left of the screen.
Here is an example of a created payment plan (Payment Plan tab) and the corresponding Schedule (Schedule tab). Note the Schedule tab indicates the number of scheduled payments, i.e. Schedule (2)
8. Click on the Schedule tab. The number of payments, their amounts, and respective due dates are based on your entries provided in the Payment Plan fields.
Verify each row in the details area for accuracy. Edit the values as necessary.
9. To activate the Payment Plan:
Change the Status from Pending to Active on the Payment Plan tab.
Select Save.
10. To verify the suppression of Receivable Fees:
Select the Transaction link from the grid.
11. Select the Vendor section.
Click the cog wheel on the left side and select the following fields and click OK:
Suppress Auto Finance Charge
Suppress Invoice Billing
12. Select the Billing / Collection Status subtab.
13. View the details and verify:
Payment Plan shows a Yes.
Suppress Invoice Billing field indicates Yes.
Suppress Auto Fin Charge field indicates Yes.
Verifying Payment Plan Status
1. Enter PPPT in the Global Search field
Select Payment Plan Print
2. Enter search criteria (e.g. Transaction ID) and select Apply.
3. Verify the Print Status for the record is Original Pending.
