Creating an installment term allows you to sell high-priced non-subscription offering (NSO) products to your customers by allowing them to pay in installments. This gives customers the flexibility to choose a payment option that works best for them.
After creating an installment term, you must map that term to your NSO in order to generate an order against your account.
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.
- Lump sum: a single deposit or upfront payment that reduces the total installment amount spread over the period. It minimizes the risk of uncollectible balances. There are 2 types of lump sums, ‘Proportionally Split (tax/charge)’ and ‘Tax’.
Creating an Installment Term
Getting Here: Click Products > Installment Terms
- Press New to call up the following dialog:
- Enter/select the following:
Field Description Name (required) Enter the name of your installment term. Client Defined Identifier (required) Accept the default name of your installment term or enter an identifier that conforms to your standard naming conventions and practices. Description Enter an installment term description. Aligned Installment? (required) Select Yes to align the installment with a Master Plan Instance (MPI), billable on an anniversary date, or No to create an independent installment with a separate bill date(s). For an aligned installment:
Enter/select the following:
Field Description Term Period (required) For installments aligned with master plan instances, this is the term period of the number of anniversary statements for which this installment should be included. Lump Sum? This is a one-time amount that will reduce the total installment to be spread over the course of the installment period. For an independent installment:
Enter/select the following:
Field Description Term Period (required) Select a number of Days, Weeks or Months from the dropdown list along with a numeric value designating the period in which to generate a statement for an independent installment (the tool tip should change from Aligned installment and Term Period after selecting independent, BTW). Interval (required) Enter the interval in which to generate a customer statement based on the Term Period selection (Days, Weeks, or Months). When to notify? Enter the number of days after the invoice date to notify the customer that payment for an independent installment is due. When is installment due? Enter the number of days after notification that an independent installment payment is due. Lump Sum? This is a one-time amount that will reduce the total installment to be spread over the course of the installment period.
Mapping An Installment Term To Your NSO
Getting Here: Click Products > Non-Subscription Offerings > [choose an NSO] > Installment Terms tab
Click the checkbox as shown to select an Installment Term from the grid of available terms for your NSO. You can now associate this NSO with its associated installment terms as part of a billable order for your customer.