1. Order Management
  2. Billing and Invoices
  3. Invoices
  4. Invoicing Billable Customers
  5. Creating Installments

Creating Installments

You can create installments for your customers who pay for items over time using installment-based payments. The Installments feature is part of the term record. When the Installment box on the term record is checked, installment-specific fields appear. Fields that are not installments-specific appear, but are not available for editing.

Before using the Installments feature, enable it by going to Setup > Company > Enable Features . Select the Accounting subtab, and check the Installments box.

To create an installment term

  1. Access the term record by going to Setup > Accounting > Accounting Lists > New > Term.

  2. On the term record, check the Installment box.

    screenshot of Installments Term record
    Note:

    After you check the Installment box, new fields appear. Any non-installment fields are unavailable.

  3. In the Terms field, enter the installment terms. For example, Three Month Term.

  4. In the Days Till Net Due field, enter the number of days after the invoice date that the payment is due. For payments due upon receipt, enter 0.

  5. From the list, select a recurrence frequency. Options are:

    • Annually

    • Daily

    • Monthly

    • Weekly

  6. in the Recurrence Count field, enter the number of recurring payments. For example, 3.

  7. To split the payments into equal amounts, check the Split Evenly box. If you do not want the payments split evenly, clear the box. A list of installment lines appears that enables you to enter the amount of payment for each installment.

  8. To include the total tax amount with the first installment, check the Pay Tax Upfront box.

    Note:

    If the Pay Tax Upfront box is checked, any shipping fees are split across the installments. However, the total of any shipping taxes is included in the first installment.

  9. Click Save.

Any fields that are not supported by installments are unavailable after the Installment box is checked. Specifically, discounts are not supported.

After saving the installment term, you can add it to a sales order. On a sales order, installment details are available for viewing only. Installments cannot be edited on a sales order. Any editing must be done on the invoice.

To add an installment term to a sales order, click the Billing subtab, and then select your term from the Terms list. When the sales order is fulfilled and then billed, the installment terms appear on an invoice.

To see installment information, click the Billing subtab on the invoice. If creating a standalone invoice, select a term from the Terms list.

screenshot of Billing subtab on the invoice

You have the option to override the installments. To make changes, check the Override Installments box to make changes. If you override any installments, you must ensure that the total adds up to the total amount of the invoice.

On the invoice, the header-level due date always indicates the next installment due date. In edit mode, the header-level due date cannot be changed. However, when in edit more, unpaid installments can be changed on the invoice. Paid installments cannot be edited. On the sales order, installments are only shown in view mode and cannot be edited.

When you accept payments, the status of the payment changes. If a customer pays more than the amount due for an installment, the overage amount is applied to the next installment. When the overage amount does not completely cover the amount due for an installment, the status for that installment is partially paid. The same is true for the aging balance. The aging balance shows a late installment as past due, not the entire balance.

When an installment is unpaid after the due date, only the late installment is marked as past due, not the entire invoice.

Setting the Tax Allocation for a Subsidiary

If you have a OneWorld account, you can set the tax allocation method for each subsidiary by going to the Invoice Preferences page. When you set the tax allocation method for a subsidiary, all invoices with an installment term use the same method. Each subsidiary can only use one method. When you click the Installments subtab, your available subsidiaries appear in the Upfront Tax Allocation list and the Split Tax Allocation list. Select the subsidiaries that you want to use for one of the two allocation methods.

To set the tax allocation method for a subsidiary:

  1. Go to Setup > Accounting > Preferences > Invoicing Preferences

  2. Click the Installments subtab.

  3. From the Split Tax Allocation list or the Upfront tax allocation list, select the subsidiaries you want to associate with a tax allocation method.

    Note:

    You can select more that one subsidiary for each method. Each subsidiary can only have one tax allocation method.

  4. Click Save.

If you need to change the tax allocation method for a subsidiary, you can do so from the Invoicing Preferences page. The change is applied from that date forward.

Related Topics

General Notices