NSO Installment Terms
Overview
This feature allows you to sell high-priced NSO products to your customers by letting them choose to pay in installments. This provides the following benefits:
- For your customers: Makes expensive NSO products more affordable by breaking the total cost into smaller payments.
- For you: Records the entire revenue from the NSO sale upfront.
Note: This feature is currently available in its Phase 1 iteration and accessible only via API.
Key Features
- Flexible Payment Options: Customers can opt for installment plans for high-priced NSO products. During the purchase process, customers can opt-in to an installment term mapped to the NSO product. This gives them the flexibility to choose a payment option that works best for them.
- Optional Installments: Installment terms are optional, even if NSO products are configured with installments.
- 2 Types of Installment Terms:
- Aligned with master plan instance: installment schedule (bill/notify dates, due dates) is aligned with your master plan instance (associated with NSO) bill dates and be part of MPI anniversary statement (not part of prorated statement). This type of installment will always follow the Master Plan Instance (MPI) anniversary date and statement even when the MPI bill date is moved or adjusted.
- Independent: Installment schedule has its own bill/notify dates and due dates. Customers will be notified through a new communication class (IDR – installment due reminder) of the upcoming due amount. The new communication class batch called ‘Installment Schedule Due’ needs to be enabled by Aria Customer Support for existing clients. For new clients, the batch will be enabled automatically.
- Enhanced Payment Collection and Payment Application: Payment collection logic excludes the collection of future installment dues. The payment application integrates with your existing payment setting configuration or option: First-Due-First-Out and First-In-First-Out.
- Compatibility: The Installment feature is compatible with coupons as well as various order billing options.
Process Flow
The following flowchart presents an end-to-end process flow for both aligned and independent installments:
Customer Selects Installment Plan
During the purchase process, customers will have the option to opt-in for an installment term mapped to an NSO product. This gives them the flexibility to choose a payment option that works best for them.
Customer Invoiced for Full Amount
When a customer makes a purchase, an order will be created and invoiced for the full amount of the product (depending on bill order option: immediately or in the future).
Aria Creates Installment Schedule
During the invoicing process, an installment schedule will be created. This schedule outlines the details of each installment, including the amount due, due dates, notify dates, and payment status.
Aria Sends Customer Communication
Depending on the type of installments, Aria notifies customers of the upcoming installments due via their anniversary statement (for aligned installment) or via email for a new email template class Installment Due Reminder (IDR) for an independent installment.
Aria Collects Payments
Aria collects payments based on the installment schedule, either manually or automatically (depending on the payment method configured for the billing group).
Prerequisites
- You offer customers at least one NSO in your product catalog.
- You have considered the scope of automatic payment collections via the Aria-instance-wide parameter Configuration > Billing > Invoice Settings > Auto-Collect Balance Scope for customers' electronic payment methods. The "Full Balance" value excludes installments amounts not yet due.
- You have enabled the Email Template Class Installment Due Reminder (IDR) to notify customers of installments due.
- Aria Customer Support has enabled the Installment Schedule Due if you plan to use "independent" installment terms (this only applies to Aria clients who implemented Aria before June 2024 and is already enabled for clients who implemented Aria post that date).
Define Installment Terms
In Aria's Phase 1 implementation of NSO Installment terms, you must call create_installment_terms_m to define an installment term.
There are several attributes you must consider when configuring installment terms:
- Client installment term ID: specifies client installment term ID.
- Installment term name: specifies installment term name.
- Installment types: specifies the type of installment (aligned or independent).
- Installment interval: determines how often the installment will be charged (for example: monthly).
- Installment term length: determines the length of the installment period (for example: 12 months).
- Days to start: Specifies how many days after the invoice date the installment begins and customers are notified. Applicable only for independent installment.
- Days until due: Specifies how many days after customers are notified the installment is due. Applicable only for independent installment.
Map Installment Terms to NSOs
Once you've defined installment terms, you can assign them to specific NSO products by calling the APIs create_inventory_item_m or update_inventory_item_m. You can apply installment terms to multiple NSO products as needed, allowing you to avoid product catalog proliferation.