Payment Plans

You use payment schedules to create a payment plan for orders. Payment plans are not related to payments and/or deposits but are a way to schedule and create invoices for calculated or fixed amounts on certain dates, relative to an order or event.

You can use payment plans with booking orders, service orders, registration orders, fulfillment orders and contracts. You can have orders (except fulfillment orders) automatically added to payment plans or you can add orders manually to payment plans.

To use payment plans, you need to configure the following:

• Payment Plan System Settings
• Access Privileges
• GL Sources
• Receivable Transaction Types
• Payment Plan Resources
• Payment Schedules

Memo Payment Plans and Non-Memo Payment Plans

You have the option to use memo payment plans or non-memo payment plans. Memo payment plans do not create any general ledger transactions. They allow you to track the AR due, run the Proforma Invoice report and track unpaid steps.

Non-memo payment plans create actual invoices and general ledger transactions.

Determining which payment plan type to use depends on your organization's needs. This is a discussion to have with the Financials Team at your organization and Momentus Technologies. 

You should never change between using memo payment plans and non-memo payment plans without first consulting Momentus.

Payment Plan System Settings

You need to configure your payment plan system settings before you use payment plans. Once you configure these system settings, it is important to not change them without a complete understanding of the impact.

1. Click the Accounts Receivable Configuration link from the Main Menu. The Accounts Receivable Configuration screen opens.
2. Select the General tab.
3. Expand the Payment Plans section.
4. Configure the following options:
   • Automatic Recalculation with Order Change - If checked, the payment plan recalculates with every order change. Momentus recommends checking this box.
   • Consolidate Plan Due Dates - If checked, the payment plan steps are consolidated if the due dates on multiple steps are the same. Momentus recommends checking this check box. 
   • Deferred Revenue Recognition By Resource - If checked, the deferred revenue recognized during payment plan invoicing is by resource type/order line. This requires all resource types on an order to have a valid deferred revenue credit GL account to create a valid journal entry. If the checkbox is unchecked, the deferred revenue is recognized when the payment plan is invoiced to the GL account specified on the class 9 payment plan resource type. Regardless of whether the check box is checked or unchecked, if tax or other charges are accumulated separately, the distribution continues to use the class 9 payment plan tax or other charge resource type.
   • Allow Credit of Phase 5 Payment Plan Invoices – If checked, you can credit a final invoice. This reverses the associated journal entry and reopens the payment plan, allowing you to add another Actual step (final invoice). Phase 5 refers to the Actual phase. Only the final payment plan invoice is based on the Actual phase. 
   • Create Memo Plans Only - If checked, payment plans are marked as Memo payment plans and you cannot invoice them. The orders in memo payment plans are closed and then invoiced as regular orders. Do not change this parameter without first consulting Momentus Technologies.
   • Group Memo Plan Orders - If checked, the memo payment plan orders selected for invoicing are included on the same invoice as non-payment plan orders selected for invoicing. Only check this check box if you use memo payment plans.
   • Invoice Cash Application - Determines how payments and adjustments on orders are applied to individual payment plan invoices during the invoicing process.
     • Advanced - All payments and adjustments are applied to the invoice up to the invoice amount or the amount of the payments. In the case of multiple adjustments and payments on an order, adjustments are applied first and payments are applied in transaction date order until the invoice is closed or all payments are fully applied.
     • Standard - A payment or payments are applied only if the sum of all payments on an order equal the payment plan invoice amount. No adjustments are automatically applied.
   • Allow Deletion of Orders Included on Payment Plan - If checked, you can remove orders from a payment plan and then delete the orders even if they are included in the calculations for an invoiced step. If unchecked, you cannot delete any orders attached to a payment plan at the time a step is invoiced. 
5. Click OK.

Payment Plan Access Privileges

You use access privileges to control the payment plan information roles/users can add, edit, delete or view. You use access privileges along with access management. Proceed cautiously before making changes to any access privileges as any changes may have an impact on other users in your system.

You can change payment plan access privileges from either the Access Privileges screen on the Main Menu or from the Accounts Receivable Management Configuration screen on the Access Privileges tab.

Below is a list of available payment plan access privileges.

Access to Payment Plan Schedules

This access privilege controls who can access payment plan schedules. Roles/users can only access the payment plan schedules assigned to them. Roles/users are assigned security privileges in 2 parts - Assign Access Privileges and Assign Details. When a role/user is assigned to the privilege, Assign Details defaults to all payment plan schedules. If the privilege is active and a role/user does not have access to the payment plan schedule from which a payment plan is created, the role/user cannot modify that payment plan.

If no roles/users are assigned to the privilege, it is considered inactive, and all roles/users have access to all payment plan schedules. If a role/user is assigned to the privilege (activating the privilege), all unassigned roles/users are unable to access any payment plan schedule they are not assigned.

Allow Modification of Customer Payment Plan Distribution

This access privilege controls who can change the distribution on customer payment plans. Any roles/users assigned to the privilege can modify the distribution on customer payment plans while roles/users not assigned to the privilege cannot modify the distribution on customer payment plans. If no roles/users are assigned to the privilege, it is considered inactive, and all roles/users can modify the distribution on customer payment plans. 

Create(Add) Payment Plans

This access privilege controls who can create customer payment plans. Any roles/users assigned to the privilege can create customer payment plans while any roles/users not assigned to the privilege cannot create customer payment plans. If no roles/users are assigned to the privilege, it is considered inactive, and all roles/users can create customer payment plans.

Delete/Modify Payment Plans

This access privilege controls who can change customer payment plans. Any roles/users assigned to the privilege can change and delete customer payment plans while any roles/users not assigned to the privilege cannot delete or change customer payment plans. If no roles/users are assigned to the privilege, it is considered inactive, and all roles/users can delete and change customer payment plans.

Invoice Final Payment Plan Step

This access privilege controls who can invoice the final payment plan step. Any roles/users assigned to the privilege can invoice the final payment plan step while any roles/users not assigned to the privilege cannot invoice the final payment plan step. If no roles/users are assigned to the privilege, it is considered inactive, and all roles/users can invoice the final payment step.

Invoice Interim Payment Plan Steps

This access privilege controls who can invoice the interim payment plan steps. Any roles/users assigned to the privilege can invoice interim payment plan steps while any roles/users not assigned to the privilege cannot invoice interim payment plan steps. If no roles/users are assigned to the privilege, it is considered inactive, and all roles/users can invoice interim payment plan steps.

Invoice Payment Plans - General

This access privilege controls who can invoice payment plans. Any roles/users assigned to the privilege can invoice payment plans while any roles/users not assigned to the privilege cannot invoice payment plans. If no roles/users are assigned to the privilege, it is considered inactive, and all roles/users have can invoice payment plans. 

General Ledger Sources

Even if you do not use General Ledger transactions, you must still create GL sources to create the payment plan invoice. Use the information below for the new GL sources. See GL sources for detailed steps on creating new sources.

• Payment Plan Invoicing GL Source
  • Source - PI
  • Description - Payment Plan Invoicing
  • Last JE # - Leave blank.
  • Status - Check the check box.
• Payment Plan Revenue GL Source
  • Source - PP
  • Description - Payment Plan Revenue
  • Last JE # - Leave blank.
  • Status - Check the check box.
• Payment Plan Revenue Reversal GL Source
  • Source - PR
  • Description - Payment Plan Revenue Reversal
  • Last JE # - Leave blank.
  • Status - Check the check box

Receivable Transaction Types

Momentus Enterprise requires an Invoice receivable transaction type to create a payment plan invoice. This is the only required receivable transaction type for payment plans. See Receivable Transaction Types for detail steps on creating new receivable transaction types. Use the information below on the Add Receivable Transaction Type screen. 

• Description - Name of the receivable transaction type that is visible to users. 
• Type - Invoice
• Source - Payment Plans
• GL Transfer - Check the check box.
• GL Distribution Tab - GL Distribution for the payment plan invoice.

If you use Accounts Receivable, create additional payment, adjustment and finance charge (if applicable) transaction types for the Payment Plan source.

Payment Plan Resources

You need to configure two resource types and one resource code as class 9 (payment plan) resources. You also need to create payment plan tax resource codes that are the same as the tax resource type (class 8 resources).

Avoid using resources descriptions that includes Payment and/or Deposit or include any reference to the payment plan step. You can configure these type of descriptions when you configure the payment schedule.

To configure payment plan resources:

1. Click the Payment Plan Resources link from the Main Menu. The Payment Plan Resources screen opens.
2. Click the Add button. The Add Payment Plan Resource screen opens.
3. Enter the necessary information:
   • Type - Unique numeric code starting with 9.
   • Resource Type Description - Payment Plan Installment
   • Enter the necessary information for remaining fields as needed for your organization. See Resources for details on the available fields.
4. Click OK.
5. Repeat steps 2 - 4 to create resource types for the payment plan tax resource type.

If you use General Ledger transactions, configure the credit GL Distribution on each resource as:

Debit GL distribution is not necessary as the debit revenue is determined by the debit GL Distribution on the invoice receivable transaction type previously configured.

Payment Schedules  

When you assign a payment plan to an order or contract, it is based off a template, called a payment schedule. You can configure as many payment schedules as you like but each schedule must include a minimum of two payment plan steps. To configure payment plan schedules:

1. Click the Payment Schedules link from the Main Menu. The Payment Schedules screen opens.
2. Click the Add button. The Add Payment Schedule screen opens.
3. Enter the necessary information:
   • Description - Name of the payment plan displayed to users.
   • Code - Unique code for the payment plan. Momentus recommends the code not include numbers to reduce confusion between the payment plan code and the payment plan ID that is created when a payment plan is assigned to an order or contract.
   • Amount - Calculation for each payment plan step.
     • Round to the Nearest Whole Amount - Any percentage based order phase payment plan step rounds to the nearest whole amount. The difference is accounted for in the final payment plan invoice.
     • Use Calculated Amount - Exact amount calculation is used.
   • Active - Select Yes to make the payment schedule available for selection on orders or contracts.
4. Click the Save (disk) button. The screen name updates to Edit Payment Schedule.
5. Select the Payment Schedule Steps tab. This is the tab where you add the steps to the payment plan.
6. Click the Add button. The Add Payment Schedule Steps screen opens.
7. Enter the necessary information:
   • Description - Name of the payment plan step.
   • Type/Amount - Determines how the payment plan step is calculated.
     • Percent - The step calculates based on the percentage entered of the total of all orders on the payment plan. See Payment Plan Percent and Fixed Percent for more detailed information on which option may work best for your organization.
     • Fixed Percent - The step calculates at the entered percentage regardless of the total of all orders on the payment plan. See Payment Plan Percent and Fixed Percent for more detailed information on which option may work best for your organization.
     • Fixed - The step is created for the entered fixed amount.
     • Remainder - The step is created for the remaining order amount. Only use this option for the Actual payment plan step. You do not need to enter a numeric value.
     • Use Groups - Billing groups determine the percentage or amount for the step. When Use Groups is selected, a Groups tab becomes available where you can select each billing group and the amount or percentage for each billing group. For example, 100% for Room Rental and 50% for Catering. See Billing Groups for additional information.
   • Phase - Determines if the step is for the ordered amount (Ordered) or the actual amount (Actual). Each payment plan can have only one Actual step. You must set the Actual step as a remainder step or a percentage resulting in a cumulative percentage of 100%.
   • Resource Type - Resource type configured in the Payment Plan Resources section for the step you are creating.
   • Show Taxes on Invoice - If checked, the tax amount displays on the payment plan invoice. If you use taxes with each payment plan step, Momentus recommends checking this box. 
   • Use Payment % For Tax % - Only available if Show Taxes on Invoice is checked. If you use taxes  each payment plan step, Momentus recommends checking this box. 
8. Expand the Due Date section. 
9. Enter the necessary information:
   • Overrides Terms - If checked, the Due Date on the step overrides any customer terms for the bill-to account. See Customer Terms and Payment Plans for more information.
   • Due Date Days, Days After/Before and Calculation Date - These three fields are used to determine the due date for the payment plan step. Momentus recommends using 0 days Before Order Date for the first step and 0 days after Event End/Move Out for the last step. 
     • Due Date Days - Number of days before or after the date selected in the Calculation Date drop-down. 
     • Days After/Before - Determines if the number of days entered into the Due Date Days should calculate before or after the date selected in the Calculation Date drop-down.
     • Calculation Date - Date to use for the due date calculation. Not all options are applicable for all order types.
       If you select a date option that is not applicable for a specific order type, the payment schedule is not available for selection for orders with that order type. For example, move in/out and event dates are not applicable to fulfillment orders. If you select a step with a move in calculation date, you cannot select that payment schedule for any fulfillment orders.
10. Expand the Issue Date section. 
11. Enter the necessary information:
    • Use Terms To Calculate Issue Date - If checked, the issue date calculates based on the customer terms for the payment plan account. See Customer Terms and Payment Plans for more information.
    • Issue Days Prior to Due Date - Minimum number of days prior to the due date you can issue the invoice.
12. Select the Advanced tab.
13. Expand the Trace Recipients section. This configures the recipients for automatic activities that get generated for the due date and/or issue date of a payment plan step. See Automatic Payment Plan Activities for more information.
14. Select the Tax Tab to configure the tax(es) to include on the step. Momentus recommends applying a tax to each payment plan step. Any fixed dollar amount taxes should come before any percent based taxes.
15. Click the Add button. The Add Payment Schedule Tax screen opens.
16. Enter the necessary information:
    • Type - Determines how the tax is calculated.
      • Fixed - The tax is created for the entered fixed amount.
      • Fixed Percent - The tax calculates at the entered percentage regardless of the total of all orders on the payment plan.
      • Percent - The tax calculates based on the percentage entered of the total of all orders on the payment plan.
      • Remainder - The tax is created for the remaining order amount. Only use this option for the Actual payment plan step. You do not need to enter a numeric value.
    • Resource Type - Resource type configured in the Payment Plan Resources section for the tax you are creating.
    • Tax Resource Type - Tax resource type (class 8) for the tax. Only class 8 resources assigned to the Resource Type selected are available for selection.
    • Amt/Pct - Amount or percentage for the tax.
17. Click OK.
18. Repeat steps 15 - 17 for each tax on the payment plan step. Return to the Edit Payment Schedule Steps screen when complete.
19. Click OK.
20. Repeat steps 6-19 for each additional payment plan step. 
21. When complete, click OK on the Edit Payment Schedule screen.