Deferred and Installment Billing (F51)

Purpose: Use this screen to set up information related to deferred and installment payment plans, such as:

• whether you wish to use deferred and installment billing

• the number of times a payment plan can be used before an order is placed on hold

• the number of days a credit card can be used before an order containing a payment plan is placed on hold

• the dollar threshold for a payment plan

• whether you wish to net credits with debits for orders containing a deferred or installment payment plan

Use Deferred and Installment Billing (F51)

Purpose: Select this field if you want the ability to assign a deferred or installment payment plan to an order.

When this system control value is selected, the:

• Pay plan field displays on the Enter Payment Method screen, Work with Order Recap screen, and Enter Credit Card pop-up window to allow an operator to assign a payment plan to the order.

• the Pay Plan Summary displays on the Enter Payment Method screen which advances you to the Display Payment Plan Summary screen

Leave this field unselected if you do not want the ability to assign a deferred or installment payment plan to an order.

The Pay plan field and Pay Plan Summary do not display in order entry or order maintenance.

Number of Times Flexible Payment Option is Used (F52)

Purpose: Enter a number in this field to define the number of times a credit card can be used before an order containing a deferred or installment payment plan is placed on PV (Pay Plan Velocity) hold.

For example, if you enter 2 in this field, the system will place an order on PV hold if the credit card has been used on more than 2 orders containing a deferred or installment payment plan.

If the credit card exceeds the number defined in this system control value, the system will then look at the value defined in the Number of Days Flexible Payment Option is Used (F53) system control value to determine whether an order should be placed on PV hold.

Enter 0 or leave this field blank if you do not want the system to place an order containing a deferred or installment payment plan on PV hold.

Number of Days Flexible Payment Option is Used (F53)

Purpose: Enter a number in this field to define the number of days a credit card can be used before an order containing a deferred or installment payment plan is placed on PV (Pay Plan Velocity) hold.

The system only determines the number of days a credit card can be used before its next use on an order containing a deferred or installment payment plan if the credit card exceeded the value defined in the Number of Times Flexible Payment Option is Used (F52) system control value.

For example, if you entered 2 in the Number of Times Flexible Payment Option is Used system control value and the credit card was used on more than 2 orders containing a deferred or installment payment plan, the system would then determine the last day the credit card was used. If you entered 5 in the Number of Days Flexible Payment Option is Used system control value, the system would place the order on PV hold if the credit card was used on more than 2 orders containing a deferred or installment payment plan and the credit card was used less than 5 days ago.

Leave this field blank if you do not want the system to place an order containing a deferred or installment payment plan on PV hold based on the number of days between each use of the credit card. The system will still place an order containing a payment plan on PV hold if the order meets the number defined in the Number of Times Flexible Payment Option is Used (F52) system control value.

Dollar Threshold for Sold To Customer Orders with Flexible Payments (F54)

Enter the dollar amount you wish to system to use to determine whether an order containing a deferred or installment payment plan should be placed on hold. If the total dollar amount outstanding for a sold to customer exceeds the amount defined, the system places all future orders for the customer sold to on P$ (Pay Plan Dollar Threshold) hold.

The system uses the following calculation to determine the total dollar amount outstanding for a sold to customer for orders containing a deferred or installment payment plan:

 

balance open amount + open invoice amount = total outstanding dollar amount

 

Leave this field blank if you do not want the system to place orders containing a payment plan on hold when the total dollar amount for the sold to customer exceeds the dollar threshold.

Net Credit Card Credits for Deferred and Installment Billing (F55)

Purpose: Select this field if you wish to net credit invoices with debit invoices before a deposit is sent to the service bureau for an invoice associated with a deferred or installment payment plan.

Netting Credit Card Credits for Deferred Billing:

When you net credit card credits for deferred billing, the system subtracts the credit invoice from the debit invoice and only sends the debit invoice to the service bureau for deposit.

Example:

Debit invoice = 69.00   Credit invoice = 31.50   The system subtracts the credit invoice from the debit invoice to determine the remaining amount to deposit: 69.00 - 31.50 = 37.50 (this is the new amount to deposit).   When you send the debit invoice of 37.50 to the service bureau for deposit, the system: updates the deposit release date for both the debit invoice and the credit invoice with the date the debit invoice was deposited updates the amount remaining to deposit for the credit invoice to 0.00 updates the amount deposited for the debit invoice to 37.50 writes a deposit history record for the debit invoice only

Netting Credit Card Credits for Installment Billing:

When you net credit card credits for installment billing, the system subtracts the credit invoice amount from the debit invoice amount. The system then divides the remaining amount to deposit for the debit invoice by the number of remaining installments to determine the amount due for each installment.

Example:

Debit invoice = 69.00 Number of installments = 3 Installment amount = 23.00 Credit invoice = 31.50 The system subtracts the credit invoice from the debit invoice to determine the remaining amount to deposit: 69.00 - 31.50 = 37.50 (this is the new amount to deposit). The system then divides the remaining amount to deposit by the number of installments remaining to determine the installment amount: 37.50 / 3 = 12.50 (this is the amount for each installment)

When you send an installment amount to the service bureau for deposit, the system: • updates the deposit release date for both the debit invoice and the credit invoice with the date of the next installment • updates the amount remaining for the credit invoice to 0.00 • updates the amount deposited for the debit invoice to 12.50 (the amount of the first installment) • updates the amount remaining to deposit for the debit invoice to 25.00 (37.50 - 12.50) • updates the installment amount for the installments remaining to deposit to 12.50 writes a deposit history record for the debit invoice only

The following table explains the updates the system performs for invoices associated with a deferred or installment payment plan when you net credits and when you do not net credits.

Type of Pay Plan	Net Credits?	Result
deferred	N	The credit has a deposit release date that is the same date as the debit. The credit deposit is eligible for processing after the purchase deposit is processed. Example: • Ship an order on 8/1 for $100 with a deposit release date of 9/1 • Process return on 8/15 for $60: credit is for $60 and has a deposit release date of 9/1 • Process Deposits processes the credit of $60 after the debit of $100 is deposited
deferred	Y	The credit has a deposit release date that is the same date as the debit. When you process deposits, the net amount of the deposit only is processed. Example: • Ship an order on 8/1 for $100 with a deposit release date of 9/1 • Process return on 8/15 for $60: credit is for $60 and has a deposit release date of 9/1 • Process Deposits processes a deposit of $40 ($100 - $60)
installment	N	The credit has a deposit release date that is the same as the date you created it; however, the credit deposit is eligible for processing after the total debit deposits meet or exceed the credit invoice amount. Example: • Ship an order on 8/1 for $100 with 4 installments of $25, deposit release dates of 9/1, 10/1, 11/1, and 12/1 • Process first installment deposit on 9/1 for $25 • Process second installment deposit on 10/1 (total amount deposited now $50) • Process third installment deposit on 11/1 (total amount deposited now $75) • Process Deposits processes the credit of $60
installment	Y	The credit has a deposit release date that is the same as the date you created it. When you process deposits, the remaining installment amounts are reduced by the total credit amount. Example: • Ship an order on 8/1 for $100 with 4 installments of $25, deposit release dates of 9/1, 10/1, 11/1, and 12/1 • Process first installment deposit on 9/1 for $25 • Process return on 9/15 for $60: credit is for $60 and has a deposit release date of 9/15 • When you next process deposits, the amount of each remaining installment is reduced by $5 ($75 remaining installments - $60 credit = $15 / 3 installments = $5)

Leave this field unselected if you do not wish to net credit invoices with debit invoices before a deposit is sent to the service bureau for an invoice associated with a deferred or installment payment plan.

For invoices associated with a deferred payment plan, the system processes the credit invoice after the debit invoice has been deposited to ensure the customer does not receive a credit before the credit card has been charged.

For invoices associated with an installment payment plan, the system processes the credit invoice once the debit invoice amount deposited is equal to or greater than the credit invoice amount.

For more information:

• Establishing Order Hold Reason Codes (WOHR) for more information on order hold reason codes.

• Deferred/Installment Billing Overview for more information on payment plans.

• Processing Auto Deposits (SDEP) for more information on deposits.