20 Payments Tab

The Payments Tab is used to configure the payment schedule for each provider performing work. This payment schedule drives the Cash Flow report on the Reports Tab. The payment schedule can be used in conjunction with the Cash Flow Chart report to determine the cash flow characteristics of the payment plan.

Payments are defined as percentage values representing the portion of the total fees that will be paid or received at the completion of each milestone. If some of the fees will be paid on a recurring schedule and not based on a milestone achievement, you can specify these by clicking the “Edit Recurring Payments” button.

Creating a Milestone Payment Schedule

If payments will be paid in response to events or conditions not currently defined, you may add milestones. Defining the frequency as “Milestone” indicates that the fees associated with that item are included in payments made in response to the occurrence of one or more milestones.

Specifying Recurring Payment Items

The Payments Tab allows you to specify terms for recurring payments, tasks, that are not based on milestone achievements. For information on how to edit these payments, see Editing Payment Schedules.

Setting Payment Terms

The Payments Tab allows you to set payment terms for each provider in your study. The Payment Terms screen provides options for each provider to specify the number of days from invoice to payment expected.

To set payment terms:

Navigate to the Payments Tab.
Click the Set Payment Terms button to display the Payment Terms dialog box, which allows you to specify the payment terms negotiated between the sponsor and each provider performing work.
For each provider, choose the closest available option to define the number of days from the time an invoice is received to the time the payment should be received, with the drop-down menu. These terms are considered when plotting the cash flow characteristics of the payment schedule. The terms identified are only applied to the provider listed in the provider column.
Click OK.

Editing Payment Schedules

Recurring payments can be edited with the Recurring Payments button, which allows you to specify which items' fees are paid at regular intervals instead of as per the milestone payment schedule. For each item whose fees are to be paid on a recurring basis, you may define the frequency at which these payments will be made or received. You may also indicate whether payments are expected in advance of the period for which the fees apply or only after the period has ended.

To edit recurring payments:

Navigate to the Payments Tab.
Click the Edit Recurring Payments button to display the Recurring Payments dialog box. This screen lists all of the major tasks, or specially marked pass-through costs, that can be configured as a recurring milestone or payment. To configure them, define the frequency of payments for each item with the drop-down menus.

Adding Milestones

The Provider Tab allows you to add user-defined milestones with the Add Milestone button. User-defined Milestones are listed on the Provider Tab in the Milestone column and can have their payment schedules adjusted.

To add user-defined milestones:

Navigate to the Payments Tab.
Click the Add Milestone button to display the Create Milestone dialog box.
Enter a name for the milestone. Next, select the system-defined milestone before or after which this milestone is expected to occur from the drop-down menu. The calculated date for this milestone will be the number of days specified prior or subsequent to the system-defined milestone selected.

In the Code field, enter a short 3-6 character abbreviation for this milestone. This value is used to display the milestone on reports where the full name will not fit or display properly. The Description field allows you to enter any additional information to help describe this milestone or its purpose for this plan.
Click OK.

Deleting User-Defined Milestones

To delete user-defined milestones:

Navigate to the Payments Tab.
Select the user-defined milestone to be deleted and click the Delete Milestone button to remove the milestone from the list.

Note:
Only user-defined milestones can be removed. If you do not intend to make a payment at a system-defined milestone, define the percentage as zero.
Click OK.

Editing User-Defined Milestones

To edit user-defined milestones:

Navigate to the Payments Tab.
Select the user-defined milestone to be edited and select the Edit Milestone button to display the Edit Milestone dialog box. You can edit a previously added milestone to change its name and/or the properties which determine when it is expected to occur.
Click OK.