Certain business use cases require staged payment plans for invoices. To this end, JustOn allows for setting up installments, which represent models for intended payment plans.
Installments split an open invoice amount into smaller parts and spread the payments due over a larger period.
Applying staged payment plan with installments
- If, for example, at the time of a dunning run only the first installment of a payment plan is overdue, only this part will be subject to the produced reminder.
- If at the time of exporting SEPA Direct Debit orders only one installment of a payment plan is due, only this part will be subject to a corresponding bank transfer order.
Installments use the
Payment Due Date of the invoice as the base for the payment plan. With each installment payment, JustOn adjusts the
Next Payment Due Date.
When exporting SEPA-compliant bank transfer orders, the
Next Payment Due Date of the invoice is relevant: It must be in the past or within the next 14 days from today. For invoices whose
Next Payment Due Date is in the past, JustOn corrects the SEPA order payment date to
TODAY + 2.
Installments and Received Payments
Installments keep track of received payments. When assigning a payment balance to an invoice, JustOn saves the corresponding amount to the
Received Payment Amount field. Be aware of the following behavior:
- If the value of
Received Payment Amountis equal to the installment's
Amount, then JustOn sets the
Payment Statusfield to
Received Payment Amountis larger than the installment amount, JustOn distributes the amount over the subsequent installments, sorted by date.
Received Payment Amountis smaller than the installment amount, the
Open Payment Amountfield will show the remaining amount to be paid. The
Payment Statusfield is set
Openin this case.
Generally, installments ignore overpayments and do not track the overpaid amount.
Generally, there are several use cases that rely on installments:
Fixed payment plans
You can calculate the payment plan based on a configurable number of installment payments and a configurable interval. Optionally, you can set fixed amounts or rates, otherwise JustOn distributes the amount equally to the installments. Once defined and set, this invariable model is applied to all accordingly produced invoices.
Service period-based payment plans
You may need to create installments that correspond to the service periods of invoice line items. So instead of configuring a model to be applied, you directly relate the payment plan to the service period months (or quarters). The resulting installment amounts for each invoice line item are evenly distributed across their respective service period fractions spanned by its total service period (as defined by the Invoice Line Item fields
Service Period Startand
Service Period End).
This provides for easily modeling recurring billing with "permanent" invoices.
For both fixed and service period-based payment plans, you can use the custom setting Installment.
Variable payment plans
You may have to cover individually negotiated conditions, like, for example, account-specific initial amounts. In this case, you also define a calculation model to be applied but allow for variable data (as individually retrieved from specific fields) as the input.
To support such scenarios, you apply custom installments using a JSON configuration.
The support for variable installment configurations is available as of JustOn 2.68.1.
The support for service period-based installments is available as of JustOn 2.70.
If this feature is enabled, you can configure an installment for a subscription. When executing an invoice run, JustOn consequently produces an invoice with the payment plan (installments) set up.
Depending on your business requirements, you can also make the installment settings available for use with accounts or objects based on which you create invoices using the generic invoice run. When defining an installment on the account or the accordingly configured source object, JustOn copies it to the invoice when creating an invoice for this account or from this object.
In addition, you can apply installments manually to draft or open invoices. This allows, for example, to help customers who have failed to pay an invoice: You retroactively provide a payment plan for an invoice that has already produced a dunning reminder.
Staged payment plans (installments) do not imply revenue deferral. If not specifically set otherwise, JustOn consequently applies the
Default revenue recognition rule when generating bookkeeping data for invoices with installments.