Creating an Installment Plan

Objective

After completing this lesson, you will be able to create an installment plan

Installment Plan

The figure explains, what an installment plan is.

The installment plan is used for business partners who are willing to pay but are temporarily having payment difficulties.

The installment plan enables the distribution of one or more source items to several installment receivables that have a due date in the future. After posting an installment plan, the installment items are used for a bank collection or a dunning run instead of the original items. The number of the installment plan is saved in the original items. If interest is payable on an installment plan, the installment plan will also have an interest supplement.

The installment plan is a statistical document with multiple installment receivables, which are represented as so called "repetition items" in contract accounting: a sample business partner item (repetition group) is created and repetition items are formed for the individual due dates.

The figure lists the functions of the installment plan.

The installment plan can be created for one or more open items of the same contract account, provided they have the same currency. When selecting open items for installment plans, the priority with which original items of the plan are cleared when payments are received, can be specified.

The installment plan creation requires the number of installments within the plan and the interest key. The interest key controls the grace period, interest frequency, interest interval unit, and the interest calculation rule. You can store frequently recurring installment terms and conditions in the system as default installment plans (installment plan types).

When you create an installment plan, you can specify the percentage amount of the total amount that is to be used as the first installment. The system calculates the remaining installments as required.

When you create an installment plan, you can also specify partial amounts.

If the agreement for payment in installments is canceled, you can deactivate the installment plan manually. The original receivable is then active again. The link between the original receivables and the installment plan is deleted.

Interest is calculated for the duration of the installment plan. Interest can be recalculated and posted if customers fall behind with their payments again. For example, a customer phones and requests an installment plan with 6 installments from Jan 1 to June 1. However, on Aug 1, the customer still has an outstanding balance. It is possible to calculate and post interest on the unpaid balance that exists after June 1.

Create an Installment Plan

Business Example

You are responsible for open item management in your company.

You have to create an installment plan for your business partner.

Note

We recommend, to perform all exercises within one week in the correct sequence. If this is not possible, you should use the recordings instead.

Note

You must assign the business roles from the following table to your user. For more information about roles assignment, see the System Setup Guide.

Business Roles

Business RoleBusiness Role ID
Z_S4C_GENERIC_ROLESAP S/4HANA Cloud Generic Role
BR_APR_ACCOUNTANT_FICAContract Accounting Accountant
BR_APR_MANAGER_FICAContract Accounting Manager
BR_COLL_SPECIALIST_FICAContract Accounting Collections Specialist
BR_CONF_EXPERT_APR_FICAContract Accounting Configuration Expert
BR_ADMIN_APR_FICAContract Accounting Administrator
BR_RECONC_SPEC_APR_FICAContract Accounting Reconciliation Specialst
BR_INVOICING_ADMIN_CINVConvergent Invoicing Administrator
BR_INVOICING_SPEC_CINVConvergent Invoicing Specialist

Note

Whenever ### is used, replace it with your group number.

Note

This exercise is based on the results of the exercise: Post a Contract Accounting Document.

Exercise Options

To perform this exercise, you have two options:

  1. Watch the simulation: to start the simulation, choose Start Exercise in the figure below.
  2. Perform the steps, as described below.
ExerciseStart Exercise

To perform this exercise, use the information from the following tables:

Initial Data

Field NameValue
Business PartnerBP_DE_###
Contract AccountCA_DE_###
Company Code1010
CurrencyEUR
Posting DateToday's date
Document DateToday's date
Document Type Installment PlanYA General Document
Document Type ChargesYA General Document

Installments Data

Field NameValue
Installment Plan TypeSDE 12 Month Installment Plan in EUR
Start DateFirst day of next month
Rounding Amount1 (EUR)
Charge Amount20 (EUR)

Account Data

Field NameValue
Business PartnerBP_DE_###
List TypeALL All Items
Line LayoutYN1 Line Item Display - Basic View

Steps

  1. Log on to the SAP Fiori launchpad.

  2. Search for- and start the Maintain Installment Plan app.

    1. In the Search field, enter Maintain Installment Plan and press Return.

    2. In the result list, choose Maintain Installment Plan to start the app.

  3. Create an installment plan with 12 rates and a charge of 20 EUR for your business partner.

    1. In the Maintain Installment Plan screen, choose Create.

    2. In the Create Installment Plan: Initial screen, enter the values from the Initial Data table and choose Continue.

    3. In the Checking Reconciliation Key dialog box, choose Yes.

    4. In the Create Installment Plan: Select Items and Enter Parameters screen in the Item Selection table, the item of 480 EUR from gift card buying from exercise 9 and the 2 dunning charges of 5 EUR and 1 EUR from exercise 11 are displayed.

    5. In the Item Selection table, only select the red and overdue item of 480 EUR by clicking the box on the left. The selected item appears in light blue color. 

    6. In the Create Installment Plan: Select Items and Enter Parameters screen in the Installment Plan Parameters section, enter the values of the Installments Data table and choose Propose.

    7. In the Create Installment Plan: Define Installments screen, the installment plan projection is displayed.

    8. You will find, that the 480 EUR are split into 12 monthly installments of 40 EUR each. The charge of 20 EUR is added to the first installment, which has now an amount of 60 EUR instead of 40 EUR. The total amount is increased to 500 EUR.

    9. Choose Save, because the result is exactly as expected.

    10. The message Installment Plan and charge document posted is displayed.

  4. Choose the SAP Logo to exit the app.

  5. Search for- and start the Display Account Balance app.

    1. In the Search field, enter Display Account Balance and press Return.

    2. In the result list, choose Display Account Balance to start the app.

  6. Display the account balance for your contract account.

    1. In the Display Account Balance selection screen, enter the values from the Account Data table and choose Continue. 

    2. In the Account Display: Basic List screen, the 12 installment receivables are displayed.

  7. Choose the SAP Logo to exit the app.

Display a Business Partner's Financial Data

Business Example

You are responsible for the customer financial service in your company.

Your business partner asks for an overview of his financial data.

Note

We recommend, to perform all exercises within one week in the correct sequence. If this is not possible, you should use the recordings instead.

Note

You must assign the business roles from the following table to your user. For more information about roles assignment, see the System Setup Guide.

Business Roles

Business RoleBusiness Role ID
Z_S4C_GENERIC_ROLESAP S/4HANA Cloud Generic Role
BR_APR_ACCOUNTANT_FICAContract Accounting Accountant
BR_APR_MANAGER_FICAContract Accounting Manager
BR_COLL_SPECIALIST_FICAContract Accounting Collections Specialist
BR_CONF_EXPERT_APR_FICAContract Accounting Configuration Expert
BR_ADMIN_APR_FICAContract Accounting Administrator
BR_RECONC_SPEC_APR_FICAContract Accounting Reconciliation Specialist
BR_INVOICING_ADMIN_CINVConvergent Invoicing Administrator
BR_INVOICING_SPEC_CINVConvergent Invoicing Specialist

Note

Whenever ### is used, replace it with your group number.

Note

This exercise is based on the results from the exercises:
  • Execute Invoicing and check the Document.
  • Create a Billing Request for Invoice Correction.
  • Post a Contract Accounting Document.
  • Execute the Payment Run.
  • Execute the Dunning Run.
  • Create an Installment Plan.

Exercise Options

To perform this exercise, you have two options:

  1. Watch the simulation: to start the simulation, choose Start Exercise in the figure below.
  2. Perform the steps, as described below.
ExerciseStart Exercise

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