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.

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.

The following flowchart presents an end-to-end process flow for both aligned and independent installments:

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.

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).

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.

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 based on the installment schedule, either manually or automatically (depending on the payment method configured for the billing group).

1. You offer customers at least one NSO in your product catalog.
2. You have enabled the Email Template Class Installment Due Reminder (IDR) to notify customers of installments due for independent installment (here).
   Note: Installment Due reminders are sent only to accounts with collectible statuses (using this Email Template Class). Communications will only be sent when an installment is marked as Active. No communication will be sent if the installment status is Completed, Cancelled, or Discontinued.
3. You have contacted Aria Customer Support to add installment loops and replacement strings to account statement template to communicate installment due for aligned installment.
4. 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).

There are several attributes you must consider when configuring installment terms:

1. Client installment term ID: specifies client installment term ID.
2. Installment term name: specifies installment term name.
3. Installment types: specifies the type of installment (aligned or independent).
4. Installment interval: determines how often the installment will be charged (for example: monthly).
5. Installment term length: determines the length of the installment period (for example: 12 months).
6. Days to start: specifies how many days after the invoice date the installment begins and customers are notified. Applicable only for independent installment.
7. Days until due: specifies how many days after customers are notified the installment is due. Applicable only for independent installment.
8. 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’. 

Access additional information on creating an installment term from here.

Once you've defined installment terms, you can assign them to specific NSO products either by calling create_inventory_item_m or update_inventory_item_m or creating/updating an NSO from the Crescendo UI. You can apply installment terms to multiple NSO products as needed, allowing you to avoid product catalog proliferation.

An example of mapping an installment term to an NSO appears below:

Click here for more information on adding an inventory item with NSO installment terms to a plan.