Creating a payment schedule

You use the Contract Line Items tab in the Software Contracts application to create a schedule of payments for software contract line items.

Before you begin

Before you can create a payment schedule, you must select the Payment Schedule check box on the Properties tab.

About this task

Payment schedules are typically created only for high value items. Payment schedules are created at the line-item level. You can create a payment schedule until the contract is approved.

You can create a schedule for the payments to occur at the following times:
  • When the order is placed. This would be done, for example, if a down payment is required.
  • In a set amount of time after the purchase order was approved. For example, you can schedule a payment to occur 10 days after purchase order approval.
  • When the item is received.
  • In a set amount of time after the item is received. For example, you can schedule a payment to occur 30 days after receipt of the item.

Each scheduled payment automatically creates an invoice record in the Invoice application.

The following steps explain how to create a payment schedule for a software contract.

Procedure

  1. In the Software Contracts application, display the record containing the line for which you want to create a payment schedule.
  2. Click the Contract Line Items tab to display the contract lines.
  3. Select the line for which you want to create a payment schedule.
  4. In the Schedule Lines table window, click New Row.
  5. In the Action field, specify a value that identifies the trigger that causes the payment to be made (for example, POAPPR).
  6. Specify a value in either the Payment Percent field or the Line Cost field, but not both. These fields work in concert, such that the system calculates the line cost if you specify a payment percentage. The system calculates the percentage if you specify a line cost. If you do specify a payment percentage, the percentage on all lines must total 100%.
  7. In the Days Interval field, select the amount of time to elapse between the action and the payment. Specify zero to indicate that the payment is due at the time the action occurs.
  8. In the Target Invoice Status field, specify the status assigned to the invoice when it is created.
  9. Click OK. The payment schedule is created when the item is ordered.