<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/td/onlinemanual/000069" xml:lang="en">
   <Header>
      <Title>Installments</Title>
      <Keyword type="header" order="d1e1286213">
         <Level1>Installment</Level1>
      </Keyword>
      <Keyword type="header" order="d1e1286216">
         <Level1>Installment line</Level1>
      </Keyword>
      <Keyword type="header" order="d1e1286219">
         <Level1>Settlement</Level1>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>Invoicing by installment
		enables you to send invoices for partial amounts or percentages of the total
		net amount before or after the ordered goods are actually delivered. To
		indicate the installments, you must add a number of installment lines to the
		sales order.</Paragraph>
      <List>
         <ListIntro>It depends on the type of installment, when an installment
		  line is placed on an invoice. The following types of installment lines exist:</ListIntro>
         <ListItemHead>
            <GUIRef href="/baanerp/td/domains/sls.inty#in.adv.payment" role="option">Advance</GUIRef>
         </ListItemHead>
         <ListItem>Advance payments must
		  be invoiced and paid for by the sold-to business partner before goods can be
		  delivered.</ListItem>
         <ListItemHead>
            <GUIRef href="/baanerp/td/domains/sls.inty#normal" role="option">Normal</GUIRef>
         </ListItemHead>
         <ListItem>Normal installments are
		  invoiced before or at the delivery of goods.</ListItem>
         <ListItemHead>
            <GUIRef href="/baanerp/td/domains/sls.inty#guarantee" role="option">Guarantee</GUIRef>
         </ListItemHead>
         <ListItem>Guarantee installments
		  can only be invoiced after all goods are delivered and the non-guarantee
		  installments are invoiced.</ListItem>
      </List>
      <GeneralSection>
         <SectionTitle>Installment settings</SectionTitle>
         <ProcedureList>
            <ListIntro>Take the following steps to define, maintain, and view
			 installments:</ListIntro>
            <ListItem>Specify the
			 installment parameters on the <GUIRef href="/baanerp/td/sls/tdsls0100s400#tdsls0100sDF3" role="groupbox">Installments</GUIRef> tab of the <GUIRef href="/baanerp/td/sls/tdsls0100s400" role="session">Sales Order Parameters (tdsls0100s400)</GUIRef> session.</ListItem>
            <ListItem>Enter a sales order and set the <Link href="/baanerp/td/sls/tdsls4100m900#tdsls400.futo" role="formfield">Installments</Link> field to <GUIRef href="/baanerp/tc/domains/futo#direct" role="option">Direct Settlement</GUIRef> or <GUIRef href="/baanerp/tc/domains/futo#indirect" role="option">Indirect Settlement</GUIRef> in the <GUIRef href="/baanerp/td/sls/tdsls4100m900" role="session">Sales Order - Lines (tdsls4100m900)</GUIRef> session.</ListItem>
            <ListItem>After sales order lines are added, click <GUIRef href="/baanerp/td/sls/tdsls4100m900#tdsls4600m100" role="command">Sales Order - Installments</GUIRef> on the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu of the <GUIRef href="/baanerp/td/sls/tdsls4100m900" role="session">Sales Order - Lines (tdsls4100m900)</GUIRef> session. As a result, the <Link href="/baanerp/td/sls/tdsls4600m100" role="session">Sales Order - Installments (tdsls4600m100)</Link> session starts, in which you can
			 enter an installment schedule for the sales order.</ListItem>
            <ListItem>Close installments in the <GUIRef href="/baanerp/td/sls/tdsls4600m100" role="session">Sales Order - Installments (tdsls4600m100)</GUIRef> session. After all goods are delivered
			 and all non-guarantee installments are invoiced, the installment can be closed.
			 Next, invoices can be created for guarantee installments.</ListItem>
            <ListItem>Process installments in the <GUIRef href="/baanerp/td/sls/tdsls4223m000" role="session">Process Delivered Sales Orders (tdsls4223m000)</GUIRef> session.</ListItem>
         </ProcedureList>
         <Note>
            <SectionTitle>Note</SectionTitle>
            <List>
               <ListItem>You can create default installment schedules in the <GUIRef href="/baanerp/td/sls/tdsls4146m000" role="session">Default Installment Schedules (tdsls4146m000)</GUIRef> session. After creation, you can use these
				schedules for copying them to <Link href="/baanerp/td/glossary/glossary#InstalOrder_td" role="glossary" Update="No">sales order installments</Link>.</ListItem>
               <ListItem>The <Link href="/baanerp/td/sls/tdsls4200m000" role="session">Update Paid Amounts on Advance Installments (tdsls4200m000)</Link> session updates the paid amounts
				for <GUIRef href="/baanerp/td/domains/sls.inty#in.adv.payment" role="option">Advance</GUIRef> installments. When all advance installments for a
				sales order are fully paid for, the sales order procedure can continue.</ListItem>
            </List>
         </Note>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Installment settlements and corrections</SectionTitle>
         <Paragraph>Invoiced installments are settled (subtracted from the goods
		  amount) when the <Emphasis>goods</Emphasis> are delivered and the goods invoice
		  is printed. Settled amounts, which indicate the amount of the goods invoice
		  that is covered by the installment, form the basis for calculation of the
		  installment corrections. The correction amount, which is calculated when a
		  sales order installment is closed, is the difference between the total invoiced
		  installment amount and the settled goods invoice amount. It is calculated as
		  follows:</Paragraph>
         <Formula space-and-orientation="indented-estimated">
            <Paragraph>Goods amount to be invoiced - installment amount to be settled.</Paragraph>
         </Formula>
         <Note>
            <SectionTitle>Note</SectionTitle>
            <List>
               <ListItem>A correction installment is only created if the goods
				amount to be invoiced is less than the installment amount to be settled. In
				this case, the amount for which the customer is invoiced is too high and a
				reverse <GUIRef href="/baanerp/td/domains/sls.inty#adv.correction" role="option">Correction - Advance</GUIRef>, <GUIRef href="/baanerp/td/domains/sls.inty#nor.correction" role="option">Correction - Normal</GUIRef>, or <GUIRef href="/baanerp/td/domains/sls.inty#gua.correction" role="option">Correction - Guarantee</GUIRef> is created.</ListItem>
               <ListItem>
                  <GUIRef href="/baanerp/td/domains/sls.inty#adv.correction" role="option">Correction - Advance</GUIRef> or <GUIRef href="/baanerp/td/domains/sls.inty#nor.correction" role="option">Correction - Normal</GUIRef> installments can only be entered after
				the original installments are composed or invoiced. In this way, <GUIRef href="/baanerp/ci" role="package">Invoicing</GUIRef> can always
				retrieve the correct currency information. <GUIRef href="/baanerp/td/domains/sls.inty#gua.correction" role="option">Correction - Guarantee</GUIRef> installments can be <Emphasis>entered</Emphasis> before the original installment is released to <GUIRef href="/baanerp/ci" role="package">Invoicing</GUIRef>, because
				guarantee installments are handled after the goods are shipped and the sales
				order installment is closed. However, the <GUIRef href="/baanerp/td/domains/sls.inty#gua.correction" role="option">Correction - Guarantee</GUIRef> installment line cannot be <Emphasis>released</Emphasis> to <GUIRef href="/baanerp/ci" role="package">Invoicing</GUIRef> before the the original <GUIRef href="/baanerp/td/domains/sls.inty#guarantee" role="option">Guarantee</GUIRef> installment is released to <GUIRef href="/baanerp/ci" role="package">Invoicing</GUIRef>. In this
				way, when composing the invoice for the correction guarantee, the correct
				invoice information can be retrieved from the original guarantee.</ListItem>
               <ListItem>Manually inserted correction installments are settled
				against the goods invoice.</ListItem>
            </List>
         </Note>
         <List>
            <ListIntro>The following types of settlement exist:</ListIntro>
            <ListItemHead>
               <GUIRef href="/baanerp/tc/domains/futo#direct" role="option">Direct Settlement</GUIRef>
            </ListItemHead>
            <ListItem>Delivered goods can be
			 invoiced when not all installments are invoiced yet. When the goods are
			 invoiced, the invoiced amounts on the installment lines are subtracted from the
			 goods amount on the invoice. <List>
                  <ListIntro>With direct settlement, the following are immediately
				  visible:</ListIntro>
                  <ListItem>Revenue from the sale of goods in <GUIRef href="/baanerp/ci" role="package">Invoicing</GUIRef>.</ListItem>
                  <ListItem>Turnover of the goods in the <GUIRef href="/baanerp/td/sls/tdsls4551m000" role="session">Sales Order Line History (tdsls4551m000)</GUIRef> session.</ListItem>
               </List>
            </ListItem>
            <ListItemHead>
               <GUIRef href="/baanerp/tc/domains/futo#indirect" role="option">Indirect Settlement</GUIRef>
            </ListItemHead>
            <ListItem>Delivered goods
			 cannot be invoiced before the sales order installment is closed. When the order
			 is closed, the invoiced amounts on the installment lines are subtracted from
			 the goods amount on the invoice. <List>
                  <ListIntro>The following are applicable for indirect
				  settlement:</ListIntro>
                  <ListItem>The revenue from the sale of goods is only visible in <GUIRef href="/baanerp/ci" role="package">Invoicing</GUIRef> after the
				  sales order installment is closed.</ListItem>
                  <ListItem>Turnover of the goods is only logged in the <GUIRef href="/baanerp/td/sls/tdsls4551m000" role="session">Sales Order Line History (tdsls4551m000)</GUIRef> session after the sales order installment is
				  closed. If the sales order installment is not closed yet, in the <GUIRef href="/baanerp/td/sls/tdsls4551m000" role="session">Sales Order Line History (tdsls4551m000)</GUIRef> session, turnover is temporarily booked on the <GUIRef href="/baanerp/td/sls/tdsls0100s400#tdsls000.aitm.4" role="manual">Item for Advance Payment Installments</GUIRef>, <GUIRef href="/baanerp/td/sls/tdsls0100s400#tdsls000.fitm.4" role="manual">Item for Normal Installments</GUIRef>, or <GUIRef href="/baanerp/td/sls/tdsls0100s400#tdsls000.iitm.4" role="manual">Item for Guarantee Installments</GUIRef>, as defined in the <GUIRef href="/baanerp/td/sls/tdsls0100s400" role="session">Sales Order Parameters (tdsls0100s400)</GUIRef> session.</ListItem>
               </List>
            </ListItem>
         </List>
         <Paragraph>You can view the settlements for an installment in the <GUIRef href="/baanerp/td/sls/tdsls4513s000" role="session">Installment - Settlements (tdsls4513s000)</GUIRef> session. After the goods invoice is
		  printed in <GUIRef href="/baanerp/ci" role="package">Invoicing</GUIRef>, this session displays the settlements for the invoiced
		  installments.</Paragraph>
         <Note>
            <SectionTitle>Note</SectionTitle>
            <List>
               <ListItem>Guarantee installments are settled before they are
				invoiced, because they are always invoiced after the goods invoice is
				sent.</ListItem>
               <ListItem>When invoicing a (+) sales order line, the (-) installments
				are first settled up to the total installment amount.</ListItem>
               <ListItem>When invoicing a (-) sales order line, the (+) installments
				are first settled up to the total installment amount.</ListItem>
            </List>
         </Note>
         <ExampleSection>
            <SectionTitle>Example</SectionTitle>
            <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
               <TBODY noTR="6">
                  <TR no="1" isLast="false">
                     <TH rowspan="1" colspan="1">Line</TH>
                     <TH rowspan="1" colspan="1">Installment
					 type</TH>
                     <TH rowspan="1" colspan="1">Installment
					 amounts</TH>
                  </TR>
                  <TR no="2" isLast="false">
                     <TD rowspan="1" colspan="1">1</TD>
                     <TD rowspan="1" colspan="1">Normal</TD>
                     <TD rowspan="1" colspan="1">200</TD>
                  </TR>
                  <TR no="3" isLast="false">
                     <TD rowspan="1" colspan="1">2</TD>
                     <TD rowspan="1" colspan="1">Normal</TD>
                     <TD rowspan="1" colspan="1">400</TD>
                  </TR>
                  <TR no="4" isLast="false">
                     <TD rowspan="1" colspan="1">3</TD>
                     <TD rowspan="1" colspan="1">Normal</TD>
                     <TD rowspan="1" colspan="1">-50</TD>
                  </TR>
                  <TR no="5" isLast="false">
                     <TD rowspan="1" colspan="1">4</TD>
                     <TD rowspan="1" colspan="1">Guarantee</TD>
                     <TD rowspan="1" colspan="1">300</TD>
                  </TR>
                  <TR no="6" isLast="true">
                     <TD colspan="2" rowspan="1">Total sales order installment</TD>
                     <TD rowspan="1" colspan="1">850</TD>
                  </TR>
               </TBODY>
            </TABLE>
            <Paragraph/>
            <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
               <TBODY noTR="6">
                  <TR no="1" isLast="false">
                     <TH rowspan="1" colspan="1">Line</TH>
                     <TH rowspan="1" colspan="1">Sales order
					 amounts</TH>
                  </TR>
                  <TR no="2" isLast="false">
                     <TD rowspan="1" colspan="1">1</TD>
                     <TD rowspan="1" colspan="1">150</TD>
                  </TR>
                  <TR no="3" isLast="false">
                     <TD rowspan="1" colspan="1">2</TD>
                     <TD rowspan="1" colspan="1">500</TD>
                  </TR>
                  <TR no="4" isLast="false">
                     <TD rowspan="1" colspan="1">3</TD>
                     <TD rowspan="1" colspan="1">80</TD>
                  </TR>
                  <TR no="5" isLast="false">
                     <TD rowspan="1" colspan="1">4</TD>
                     <TD rowspan="1" colspan="1">-10</TD>
                  </TR>
                  <TR no="6" isLast="true">
                     <TD rowspan="1" colspan="1">Total
					 sales order</TD>
                     <TD rowspan="1" colspan="1">720</TD>
                  </TR>
               </TBODY>
            </TABLE>
            <Paragraph>Direct settlement is applicable.</Paragraph>
            <ProcedureList>
               <ListTitle>Flow:</ListTitle>
               <ListItem>Installment line 1 is invoiced. Invoice amount = 200.</ListItem>
               <ListItem>Installment line 2 is invoiced. Invoice amount = 400.</ListItem>
               <ListItem>Sales order line 1 is invoiced. The goods amount of 150 is
				settled against the invoiced installment line 1. <List>
                     <ListItem>Remaining goods amount to be settled = 150 - (150) =
					 0.</ListItem>
                     <ListItem>Invoice amount = 0.</ListItem>
                  </List>
               </ListItem>
               <ListItem>Installment line 3 is invoiced. Invoice amount = -50.</ListItem>
               <ListItem>The sales order installment is closed. <List>
                     <ListItem>Goods amount to be invoiced = 500 + 80 - 10 =
					 570.</ListItem>
                     <ListItem>Installment amount to be settled = 50 + 400 - 50 + 300
					 = 700.</ListItem>
                     <ListItem>Correction amount = 570 - 700 = -130.</ListItem>
                  </List>
               </ListItem>
               <ListItem>The correction installment is invoiced. Invoice amount =
				-130.</ListItem>
               <ListItem>Correction installment line 5 is manually created for the
				guarantee installment. Correction amount = -300.</ListItem>
               <ListItem>Correction installment line 6 is manually created and is of
				the normal installment type. Correction amount = 170.</ListItem>
               <ListItem>Installment line 4 is invoiced. Invoice amount = 300.</ListItem>
               <ListItem>Sales order line 2 is invoiced. The goods amount of 500 is
				settled against the invoiced installments as follows: <ProcedureList>
                     <ListItem>Against installment line 3 for an amount of -50.
					 Remaining goods amount to be settled = 500 - (-50) = 550.</ListItem>
                     <ListItem>Against installment line 5 for an amount of -300.
					 Remaining goods amount to be settled = 550 - (-300) = 850.</ListItem>
                     <ListItem>Against installment line 1 for an amount of 50.
					 Remaining goods amount to be settled = 850 - (50) = 800.</ListItem>
                     <ListItem>Against installment line 2 for an amount of 400.
					 Remaining goods amount to be settled = 800 - (400) = 400.</ListItem>
                     <ListItem>Against installment line 4 for an amount of 300.
					 Remaining goods amount to be settled = 400 - (300) = 100.</ListItem>
                     <ListItem>Against installment line 6 for an amount of 100.
					 Remaining goods amount to be settled = 100 - (100) = 0.</ListItem>
                  </ProcedureList> Invoice amount = 0.</ListItem>
               <ListItem>Sales order line 3 is invoiced. The goods amount of 80 is
				settled against the manually inserted installment line 6. <List>
                     <ListItem>Remaining goods amount to be settled = 80 - (70) =
					 10.</ListItem>
                     <ListItem>Invoice amount = 10.</ListItem>
                  </List>
               </ListItem>
               <ListItem>Sales order line 4 is invoiced. All installments are
				settled. Invoice amount = -10 + 10 = 0.</ListItem>
            </ProcedureList>
         </ExampleSection>
      </GeneralSection>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000414" role="manual">To change sales data after release to Central Invoicing</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>