Installment plan v/s payment schema

Hello,
Instalment paln and payment schema(Budget Billling) both does the same functions.If i am right what are the differences.
which gives the higher flexibility?where, how , when we use????

The biggest difference in payment schemes such as budget billing and installment plans is not in the term, but in the purpose of use.
Budget billing is created upfront for a certain period, using an estimation of the consumption to come over that period. It's used to spread upcoming bills in time (for example, based on your previous year, you'll have to pay 600u20AC in six months time, therefor we'll make you a budget billing already charging you 100u20AC each month until you receive you invoice).
Budget billing is (always) deducted from your next invoice, after which a new bbp starts.
Installment plans are used to pay off debt, after they are already invoices. Installment plans are made from open items, which are combined and redistributed over a couple of months. So, it's for bills you should already have paid, but for which you didn't have the money at the time. For example: you have two unpaid invoices, one for 100u20AC and one for 250u20AC. You cannot paid them this month and ask you utility company for a plan. They create an installment plan for 350u20AC, spreading this amount over 7 months, so you'll have to pay 50u20AC each month.
Usually, there's no need to which between BBP and installment plans. They can be use indepentently and can co-exist for one customer. You can use invoiced BBP items in an installment plan (because once invoices they are just open items). You can also cancel an installment plan and retrieve the original open items.
Hope this helps!

Similar Messages

  • Installment Plan-- Payment Run

    Hi Friends,
    by executing the Payment run for an Installment plan, comes the following error message.
    Amount 34,10- EUR for document 9123456789 could not be broken down
    Message no. >5251
    Diagnosis
    The amount specified is the clearing amount that is allotted to a collective bill or an installment plan with document number 9123456789. This amount is to be split over the items belonging to the collective bill or the installment plan by the clearing variant assigned to clearing type 20R and clearing category of the contract account.
    The clearing cannot be posted for one of the following reasons:
    You have not used a correct clearing variant for this business transaction.
    No clearing variant could be determined.
    Procedure
    Check the relevant table settings for clearing control.
    You must be able to split the amount over the items belonging to the collective bill or installment plan using the clearing variant. Therefore, you usually have to permit a partial clearing of these items.
    The clearing variant must not use rules for automatic write-off of tolerance variances.
    It is the 6th Installment plan of him, till now with Payment run- correct amount was deducted in Direct Debit and this is not the last Installment plan.
    In clearing type 20R-Distribute Payment to Installment Plan-Usage 3 was used with check box for Incoming Payments was set.
    1. I have no idea what caused the error message that was stated above.
    2. As stated in the config for 20R-There is no payment, why did the system execute this Clearing type.
    3. As it is direct debit the amount which was direct debited 34,10 is equal to IP.

    Hi Lakshmi,
    You need to check your customizing here:
    >Contract Accounts Receivable and Payable
    >Basic Functions
    > Open Item Management
    >Clearing Control
    >Clearing Variants
      >Define Clearing Variants
       20S Collective Bill
    >Define Clearing Types
      R 20S Distribute payment to collective bill
      "You cannot change the clearing types delivered by SAP."
    >Define Specifications for Clearing Types
      >Define Defaults for Collective Invoice/Installment Plan/Summarization
       20S Distribute payment to collective bill 20S
       "Special Features
        The clearing variant defined for these clearing types must
        guarantee that the clearing amount in question can be distributed
        in full to the related dependent single items. The variant may not
        use any rules for automatically writing off tolerance discrepancies.
        Otherwise, processing will be terminated. ..."
    Please make sure above customizing is maintained.
    I hope this helps.
    Best Regards,
    Anil

  • Difference bet terms of Payment for Installment Plan and Installment Plan

    Dear All,
                       what is the functionality difference between  terms of Payment for Installment Plan and Installment Plan? please pour your thoughts.
    thanks in advance

    Hi Vinay,
    Terms of payment :-this is nothing but when vendor will pay the amount to party.
    Installment payment :-This is nothing but when vendor will pay no .of terms
    Funtionally we can use for both T.codes OBB8,OBB9
    May be you can understand what i told
    Regards
    Surya

  • Installment plan clearing

    Hello All,
    I have a query regarding clearing of installment plan.
    For example:
    Posting Date    Due Date           Description    Amt
    01.02.2011     20.02.2011         Fees             5000
    01.02.2011     20.02.2011         Interest         200
    01.02.2011     20.03.2011         Interest         100
    01.02.2011     20.04.2011         Interest         50
    These  are the items posted in a customers account
    Based on these items an installment plan is created for 3 months.
    My installment plan would be
    Posting Date    Due Date           Description    Amt
    1.02.2011     20.02.2011         Instalment       1783
    1.02.2011     20.03.2011         Instalment       1783
    1.02.2011     20.04.2011         Instalment       1785
    How will the source item be cleared. In what hierarchy will it clear.
    I need to know, that can we clear partially clear the fees amount and interest based on the due date. If so, how can we achieve it.
    Regards,
    Charvi

    Hi,
    Payment Scheme requests are just statistical items. So when a payment clears a Payment Scheme request, in background SAP creates a down payment request (can be seen in FPL9 under tab down payment requests). This down payment request in turn clears the original debt. The priority is due date of the debt items which can be overwritten by config to give priority based on document types or main/sub trans.
    This answers your second question as well that while original priority is given to due date which in case will clear fees first due on 20.02.2011 but if you want interest to get cleared first, you need to do some enhancements and config to change priorities based on document types or main/sub trans.
    Regards,
    Ravi

  • How to migrate installment plan with open items

    Hi all,
    I am trying to figure out how to migrate an installment plan, when my legacy system does not tie my open items directly to my installment plans.  And the amounts in my open items table may not add up to the exact amount of the installment plan. 
    So for a simple example, I have $10 left on an installment plan that was created 6 months ago. 
    Since the creation of the plan obviously more charges and payments have been posted to this account, clearing previously open items and creating new ones.
    Presently, I have only 2 open items remaining, one for $6 and one for $7.
    So I have "enough" open items ($13 worth) to post the $10 installment plan, but not an exact match.
    The way I read the migration documentation on this, I thought I could use a OPUPZ field (Subitem for a Partial Clearing in Document) to signify that I want to partially clear that $7 charge.  Apparently I misinterpreted that.
    So my question is, is there a way to migrate this installment plan with this set of open items?
    Or is my only option to alter the payment plan to the open items, and say that there is $13 remaining on the plan?
    Thanks.

    C N,
    The principal Idea is to migrate either
    - the original amounts, the installment plan and last the latest payments (you migrate payment history)
    - or to migrate the still open amount as one or more open items and subsequently an installment based on that amount.
    Kind regards,
    Fritz

  • Payment scheme and its behaviour in FPL9

    Hi Experts,
    I have a concern,
    Anybody can explain Payment schem Request and its behaviour?
    As statistical line item impact and real item impact and when it will go to down payments tab?
    some times i can see same document in few situtions, i am quite confuse. Can you anybody can hlpe on this please?
    Thanks,
    Abash

    Hi Abash,
    Payment scheme is a budget billing plan that is offered in SAP for customers accounts where customers wants to pay a constant amount for yearly consumption, so for this the SAP extrapolates the billing line item and gives a amount based on payment frequency , for .e.g $50 per week
    Now as customer is not going to pay  the invoice amount as customer is on payment scheme, customer will pay the payment scheme amount will settle his invoice,so to take payment scheme payment a line item is required against which customer will be charged its a statistical line item, now when customer pays this amount statistical item gets cleared and payment will reside as down payment , which in turn will clear invoice in account maintenance
    Hope it helps.
    Regards,
    Lalit

  • Payment Scheme - Extrapolation Amount

    Hi All,
    This is regarding payment scheme that we create through transaction EA61PS.
    The problem is: The extrapolation amount that system calculates is only for one installment (i.e. one month). The requirement was to enhance the extrapolation period from standard 3 months to 12 months. But now when I see, even 3 month extrapolation is not happening.
    Pls help.
    Regards,
    Bhaskar

    Hello,
    To determine the start and end date of the extrapolation period for creating the payment scheme you can use event R510.
    Event R510 used to determine the start and end date of the extrapolation period for creating the payment scheme.
    The system uses parameter X_OBJ-EP_PERIOD to determine the process from
    which the budget billing extrapolation is called:
        M  Manual creation of payment scheme(EA61PS)
        E  Move-in
    The standard function module for this event is Determine Extrapolation
    Period for Payment Scheme (ISU_GET_EXTRAPOLAT_PERIOD_R510).
    In this function module, the start date is always set to the start date
    of the billing period for which the payment scheme is created.
    Exception: If the move-in date comes after the start date of the billing
    period. In this case, the start date of the extrapolation period is set
    to the same as the move-in date.
    The end date of the extrapolation period is always the same as the end
    date of the billing period.
    If you define your own extrapolation period in this event, it does not
    have any effect on the billing period.
    This means that if you change the extrapolation period to a full year,
    for example, the resulting amount is still only divided amongst the
    payment scheme requests remaining in the current billing period.
    I hope this information is useful for you.
    Regards
    Olivia

  • Installment Plan Migration failing (Emigall)

    Hi all,
    I'm trying to migrate installment plan data using the INSTPLAN object.  I can upload successfully as long as I'm only migrating ONE payment.  The problem is when I try to migrate multiple payments.  The way I read the docs, I should just be able to send multiple IPDATA rows with the payment amounts and due dates, under one IPKEY row.
    I've pared my data back to just sending as follows:
    IPKEY row with current dates
    IPDATA row with due date 20090129, amount due 14
    IPDATA row with due date 20090228, amount due 14.56
    IPOPKY row with a Document id that relates to a single open item of 28.56.
    I have verified in FPL9 that my open item is indeed that amount 28.56.  But the error that I get is:
    "Sum total Inst. Plan is not equal to the original receivables"
    So this makes me suspicious that I've done something wrong in the IPDATA rows - maybe it's recognizing only one of them?
    Can anyone shed some light on this subject for me?
    Thanks,
    C N

    One more thing I can't figure out, is how to load an installment plan where there is not an EXACT match of open items to the installment plan amount, so I need to partially clear one open item.
    I've played around with using 000 and 001 for OPUPZ as the documentation indicates, but still I cannot get that scenario uploaded
    Anyone know how to do this?
    Thanks

  • Installment plan - Plans are scheduled and not paid , extend to other cust.

    Hi Masters,
    Please clarify and suggest on Installment plan.
    We have query in Auto industry , where the customer buys the vehicle on installment basis ,and the installment plan is for 2 years . The customer pays regularly for 1 year and after an year , the customer is not paying the installment.
    There are two sceanarios .
    1.Installments not paid , how to close the instalment plan and how the payment procedure is closed
    2.if some other cusotmer want to buy the same used vehicle how can the instalment plan can be extended the other customer.
    Thanks in Advance,
    Awaiting for your inputs.
    Rakesh

    You are addressing issues that are not for this forum.  This is a user to user support forum.  Your comments are not being directed to anyone at RIM.
    Even if this was a direct to RIM forum what your carrier charges for a data plan and what data plans are available is beyond RIMs control.  Your issue is with your carrier in particular and Indian carriers in general.
    Наглый пес! Вы должны быть благодарны мы даем Вам возможность проживать в нашем мире!
    BB 9550 Verizon OS 5.0.0.1015 My Storm My Blackberry My Lifeline
    If there is a Theme on my Blackberry, Hedone it!
    If someone successfully helped you with an issue, say thank you by clicking "kudos" in their post and clicking the star.
    Antiquis temporibus, nati tibi similes in rupibus ventosissimis exponebantur ad necem
    If your issue has been solved, please mark the post that solved it for you!

  • Promise to pay v/s Installment plan

    Dear Experts,
    Can you tell me whats the main difference between a Promise to pay and an Installment plan.
    Specifically I am working with FI-CA (contract accounts). Enh.pac.II.
    Rgs,

    RBK,
    Check the following links:
    http://help.sap.com/erp2005_ehp_02/helpdata/en/46/5ee6cc9e8127c4e10000000a1553f7/frameset.htm
    http://help.sap.com/erp2005_ehp_02/helpdata/en/f3/07723521faee41e10000009b38f889/frameset.htm
    It seems that one of the differences is that you can assign a dunning procedure to the Installment plan, but not to the Promise to pay.
    Both the Installment plan and the Promise to pay can update the creditworthiness of the business partner.
    The promise to pay can have several payment dates as the Installment plan.
    You can evaluate level of fulfillment of the Promises to pay.
    Rgs.

  • How to reverse payment scheme request line which has origin as RO

    Hi Experts,
    I have a requirement to reverse the payment scheme request line.
    need help on this how to reverse this line item.
    Regards,
    Lalit

    Hi Praveen,
    Thank you very much for your reply. I appreciate your time and efforts.
    Ok, these are the steps how I have executed the process.
    - I have created a service contract for an equipment. In the service contract, I have maintained the service material in the line item, maintained price and assigned equipment in the technical objects.
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    - Checked settlement rule in the service order is SDI.
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    - Using IW42, in SAP ECC6, you can perform  both time confirmation and material consumption using the same screen and also TECO service order. System issues message to say, goods issue have been posted.
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    Best regards,
    Abdul Rafey

  • Bought a tablet on device installment plan, can no longer bill equipment to account

    I recently purchased an iPad mini and bought it on the device installment plan. Then found out that I can no longer bill equipment purchases to my account. I have a spotless payment history. I was planning on buying the iPhone 5 this week and billing it to the account so I could pay for it in January on the December bill (which would be due Jan 17 as my billing cycle closes on the 22nd). I billed an OtterBox (which I got for my iPhone 5, which I am keeping) and I billed an upgraded MiFi device (which I cancelled the online order and VZW put in a ticket to FedEx to have the shipment intercepted and returned to VZW). According to the tracking, VZW received the shipment on Nov 23rd) but VZW says that it has not been scanned in yet as of Nov 27th. I am trying to dispute the charge but have been told that it would be credited when it is scanned in. I don't know what barcode is scanned but FedEX assigned a new tracking number to return the shipment and VZW says that is unusual so I am hoping that they are not relying on the tracking barcode.
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        Iowacowboy, thanks for posting. An account cannot exceed $1000 combined bill to account and Device Installment Plan balance. (Bill to account maximum is $400 per account, per month for consumer lines). I hope this helps.^SP

  • ISU-Installment Plan item in Invoice

    Hi,
    We are rolling out installment plan and were able to create the standard installment plan.
    The present Invoice has 3 heads i.e. 1)Current month amount, 2) Outstanding and Net Amount Due (Total of 1& 2)
    The business requirement is to add the installment plan items into this, i.e. 1) Current month amount, 2) Outstanding, 3) Installment plan item and Net Amount Due (Total of 1,2& 3)
    The dates of installment plan (say 3rd Aug) and Invoice due date (Say 30th Aug) will always be varied.
    Is there any way to add the installment plan item into the Net Amount Due
    Additional info:
    -Invoicing is always monthly
    -There is no Charges/interest/taxes involved
    -Its ok if the customer pays on 30th for Installment item due on 3rd (again since Charges/interest/taxes are not involved)
    -The customer can pay only the Invoice Net amount due (no option to edit this amount when he pays) which is driving this requirement.
    Thanks in Advance,
    John

    Hello,
    Installment plans are treated as short plans where in which the overdue outstanding amount is divided into 'N of items thus reducing the burden of the customer. Say if you have £100 Inv. You have agreed to collect the amount in 2 installments. You create Inst plan for £50 each using FPR1.
    Now if the customer is on Direct Debit, the above amount would be collected  when you run the Payment run using FPY1, Generate DME file and send to bank.
    Hope this is clear
    Rgds
    Rajendra
    Points!

  • Triggering installment plan workflow

    How can i trigger a workflow for FPR1. when there is few conditions
    taxpayer must make an initial downpayment equal to 25%
    taxpayer must agree to pay the full amount due within 1 year
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    ok, but while running the transaction I want to display a message that if,
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  • Installment Plans

    Hi All,
               Actually I am working on FICA: Installment plans. There are 3 standard datasources for the Installment plan.
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    0FC_IPL_ITEM_01 --- Installment Plan Items for Business Warehouse
    0FC_IPL_ORIG_01---- Installment Plan Original Items for Business Warehouse
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    To pull the data to BW we have to scheduled a run in Tcode - FPIPBW. Where it is not giving any records in Header extractor.
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    Regards
    Karthik

    Hi,
    First execute init for the data source and then run tcode-FPIPBW.
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    Refer the below link which will be of some hlep.
    http://help.sap.com/saphelp_nw70/helpdata/EN/8a/3478f0c38fcf4c8287a5d4a4777a24/frameset.htm
    Regards,
    Sandeep.

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