Understanding Payment Schedules

You can issue payment for a contract directly to the contracting entity, or you can issue payments to one or multiple payees. For example, you could issue payments for a contract to a manager, grower, and a bank (on behalf of the grower). Additionally, you can assign each payee a different payment term and schedule. The system stores payee information in the following tables:

• Contract Payee (F43C20)

• Payee Date Schedule (F43C25)

For example, assume that the first payee record on a payment schedule has a due date rule of DEL 30 and is attached to a payment term code with multiple installments. The rule specifies a delivery percent of 30. The first payee record has a distribution percent of 20. The estimated harvest yield for the contract is 100 tons at 500 USD per ton (50,000 USD total).

According to the due date rule, the payee cannot receive payment until at least 30 tons of product have been received. At that time, the payee would receive 10,000 USD (20 percent of 50,000 USD).