Deferred/Installment Billing Setup

Purpose: Before you can used deferred or installment billing pay plans in your company, you must perform the necessary setup. Information requiring creation and setup includes:

• system control values

• secured features

• authorization service settings, including response codes and currency codes

• general ledger numbers for pay types used on pay plan orders

• order hold reason codes

• source codes that point to specific pay plans

• items that would be exempt from pay plans

Set up pay plans: Additionally, you must set up the pay plans themselves using the Work with Flexible Payment Option Screen.

In this topic:

• System Control Values

• Secured Features

• Authorization Service Settings

• General Ledger Numbers

• Order Hold Reason Codes

• Additional and Recommended Setup

System Control Values

System Control Value	Description
Deferred and Installment Billing (F51)	Set this field to Y to be able to apply pay plans to orders. If this field is set to N or is blank, you will not be able to apply pay plans in order entry or order maintenance.
Number of Times Flexible Payment Option is Used (F52)	Enter the number of times the same credit card number can be applied against a pay plan order before being evaluated for PV hold. This system control value works together with the Number of Days Flexible Payment Option is Used (F53) field, below.
Number of Days Flexible Payment Option is Used (F53)	Enter the number of days the system should use for evaluating a credit card against the Number of Times Flexible Payment Option is Used (F52) field, above. If the same credit card number appears on orders more than the specified number of times within this number of days, the order goes on PV hold. Example: You set the Number of Times Flexible Payment Option is Used (F52) field to 5, and the Number of Days Flexible Payment Option is Used (F53) field to 14. If the same credit card number appears on pay plan orders more than 5 times in 14 days, the sixth and subsequent orders for the credit card go on PV hold.
Dollar Threshold for Sold To Customer Orders with Flexible Payments (F54)	Enter the total dollar amount a customer can have in pay plan orders before the system puts new orders on $P hold. Example: You set this field to 500.00. If a customer has 3 pay plan orders for a total of $450.00, and you take a new pay plan order for $75.00, the new order goes on $P hold.
Net Credit Card Credits for Deferred and Installment Billing (F55)	Set this field to Y to have credit invoices netted against debit invoices for deposits on pay plan orders. If this field is set to N or is blank, credit and debit deposits will be processed separately.

Note: You must also create the Order Hold Reason Codes.

Each of these fields is available at the Edit Deferred/Installment Billing screen.

Secured Features

Secured Feature	Description
Override Deferred and Installment Billing Options (A81)	Controls the ability to select a pay plan other than the primary, system-selected plan in order entry
Change Invoice Payment Information (A82)	Controls the ability to change information on an invoice once the order has been billed but before the invoice amount is fully deposited. The Change Invoice Pay Method Screen allows you to change the deposit release date, credit card information, the number of remaining installments; apply a cash payment; or writeoff, resubmit, or delete the deposit. This screen is available in order inquiry and Submit Rejected Deposits.

Authorization Service Settings

Paymentech (authorization service code = PMT) supports deferred or installment billing for credit card transactions in CWDirect. When you are setting up this authorization service, please note the following additional required settings:

• Primary authorization service: set to PMT

• Industry code: enter your DBA number

• Deferred merchant ID

• Installment merchant ID

• Exclude from FPO: set to N

• Paytype cross reference (option 8 at the Work with Authorization Services Screen): Create a cross-reference for each pay type code you will allow on pay plan orders, using the vendor pay code information supplied by Paymentech.

• Currency cross reference (option 12 at the Work with Authorization Services Screen): Create a cross-reference for each currency code you will use on pay plan orders, using the vendor currency code information supplied by Paymentech.

• Vendor responses (option 9 at the Work with Authorization Services Screen): Optionally, you can set the Force deposit for FPO field to Y.

You can also set up merchant ID overrides by entity.

Pay types: Each pay type eligible for deferred or installment billing should have Paymentech set up as its authorization and deposit service.

More information: See Accounts Payable Working with Currency (WCUR) for more information on setting up pay types or currency codes. See Paymentech Processing for more information about Paymentech.

General Ledger Numbers

Optionally, you can set up the following additional general ledger numbers for each pay type that might be used for a pay plan order:

• Sale/deferred

• Sale/installment

• Return/deferred

• Return/installment

If you do not assign separate general ledger numbers for deferred and installment orders, the system uses the default sale and return general ledger numbers for the pay type.

Pay type general ledger numbers are available by typing 8 next to a pay type in Working with Pay Types (WPAY).

Order Hold Reason Codes

The order hold reason codes you should set up in Establishing Order Hold Reason Codes (WOHR) as part of credit checking pay plan orders are described in this table:

Hold Reason Code	Used When...
P$	You enter an order that makes the sold to customer's total undeposited pay plan orders exceeds the amount specified in the Dollar Threshold for Sold To Customer Orders with Flexible Payments (F54) system control value; see System Control Values for an example.
PV	You enter an order that makes the sold to customer's total pay plan orders exceed the limit specified in the Number of Times Flexible Payment Option is Used (F52) system control value, for the period specified in the Number of Days Flexible Payment Option is Used (F53) system control value; see System Control Values for an example.
SB	Any open orders for the same sold to customer are put on hold because a deposit for this customer was rejected at the Auto Deposit Screen (Send or Receive Deposits).
CB	Any open orders for the same credit card number are put on hold because a deposit for this credit card number was rejected at the Auto Deposit Screen (Send or Receive Deposits).

Additional and Recommended Setup

Optionally, you can set up the fields described below for use in deferred or installment pay plans.

Source code: You can use the following fields to control how pay plans apply in order entry if this source code is on the order header:

• Flex pay code: If you enter a pay plan code, it gives the pay plan priority in the evaluation hierarchy the system uses when selecting the plans that apply to an order.

• Exclude FPO: If you set this field to Y, orders for this source code are excluded from pay plans.

See Marketing Working with Source Codes (WSRC) for more information on setting up source codes.

Item: Set the Exclude FPO field to Y to exclude any order containing the item from pay plans.

See Merchandising Performing Initial Item Entry (MITM) for more information on setting up items.

Consolidate invoice: Setting the Consolidated Invoice (B49) system control value to Y if you use deferred or installment billing will simplify pay plan management considerably by limiting the number of invoices for an order.

Pay plan settings: Using the following settings for each pay plan you create will simplify pay plan management:

• Auto apply: Set this field alike for all pay plans that might apply to an order to simplify the pay plan selection hierarchy in order entry.

• Ship complete: Set this field to Y to simplify pay plan management by limiting the number of invoices for an order.

See Working with Flexible Payment Options (WFPO).