Using Special Payment Terms
This section discusses how to set up special payment terms and amend special payment terms.
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
CA_TERMS_PNL |
Set up special payment terms by adding optional payment term details, such as bonus or penalty amounts and early out options, to the contract. |
Use the Special Payment Terms page (CA_TERMS_PNL) to set up special payment terms by adding optional payment term details, such as bonus or penalty amounts and early out options, to the contract.
Navigation:
This example illustrates the fields and controls on the Special Payment Terms page. You can find definitions for the fields and controls later on this page.
Field or Control |
Description |
|---|---|
Amendment |
Displays the current amendment number and date of the amendment if this contract is amended through amendment processing. |
Early Out Options
Early out options specify the clauses under which a customer can terminate a contract before its completion. You can enter multiple early out options for each contract. For example, you might include a clause that gives customers a 30 days acceptance period in which they can terminate the contract for any reason, and also include a clause that runs for the lifetime of the contract in which customers can terminate the contract in case of bankruptcy.
Field or Control |
Description |
|---|---|
Early Out Code |
Select an early out code from the list of early out options that you define on the Define Early Out Options page. |
Reason |
If you select an early out code, the reason that you define for that code on the Define Early Out Options page appears. |
Early Out Status |
Select Active or Inactive. |
Notification Days |
Specify the number of days before the end date to flag an early out option that is near expiration. |
Select values for the Start Date and End Date fields to designate the time frame in which a customer may exercise the early out option. If the system date does not fall within the specified start and end dates, the specified early out option code does not apply.
Field or Control |
Description |
|---|---|
Penalty Type |
Select Amount or Percent. |
Penalty Percent |
If you selected a penalty type of Percent, you must enter a penalty percent. The system penalty is then calculated based on the total contract value. If you selected a penalty type of Amount, this field is unavailable for entry. |
Penalty Amount |
If you selected a penalty type of Amount, you must enter a penalty amount. The penalty is the amount that you specify here. If you select a penalty type of Percent, this field is unavailable for entry. |
Early Out Option Notes |
Click to create an internal note about the early out options. |
Bonus and Penalty Options
Field or Control |
Description |
|---|---|
Incentive ID |
Enter the ID for this bonus or penalty. |
Approved |
Select if the incentive is approved. |
Date of Approval |
Enter the date that this incentive is approved. |
Incentive Status |
Select Active or Inactive. |
Incentive Type |
Select an incentive type. Values are: Bonus: Incentive rewards the customer with a credit amount. Penalty: Incentive punishes the customer with a fee. |
Bonus Penalty Notes |
Click to create an internal note about the bonus or penalty. |
Computation Basis
Field or Control |
Description |
|---|---|
Amount |
Enter an amount if the incentive is a fixed amount. |
Percentage |
Enter a percentage if the incentive is for a percentage of the contract gross amount. |
After you save a contract to a contract status that is mapped to an Active processing status, any changes or updates that you make to the contract's special payment terms must be made as part of an amendment. Use the amendment processing functionality to amend special payment terms.