If you access this screen via an inquiry routine,
such as View
a Customer's Revolving Statement, you access a read-only version of
this screen. The fields are the same, but you cannot edit the information
using the read-only version.Accounting > Settings > Revolving Receivables Settings > Revolving Receivables Payment Plans
Tabs: General, Advanced, Restrictions
Use this routine to create and maintain Revolving Receivables payment plans.
If you access this screen via an inquiry routine,
such as View
a Customer's Revolving Statement, you access a read-only version of
this screen. The fields are the same, but you cannot edit the information
using the read-only version.
Revolving PlanEnter
the code representing this revolving payment plan. You can enter up to
5 alphanumeric characters. To choose an existing plan code from the Read-Only
Lookup Window, click the Search button.
DescriptionEnter or edit the text description of this revolving
plan. You can enter up to 30 characters in this field. To access the Language
Translations option, click the Action
button.
Indicate how you want the system to calculate the Minimum Monthly Payment (MMP (Minimum Monthly Payment) Monthly payment amount due from customer for their revolving charge account) for this plan. Your options are:
Using a Percentage - The MMP can vary each month. When it is calculated, the system uses the percentage indicated in the "% of the Balance" field in the plan settings.
As a Fixed Term - *The MMP does not change each month; it is a “fixed” amount, determined when the order is written with a Fixed Term plan. The MMP amount is calculated based on the interest rate, principal amount, and term (number of months). If you select this calculation method, you must specify the term length in the Fixed Term is ____ Months field. Payments to this type of plan are applied to the oldest invoice first.
*Fixed Term Add-On Sales: If a customer adds another purchase to an existing fixed term plan, the MMP may be affected. The following rules apply:
If the customer has a balance and then adds another purchase to the plan, and the MMP needs to increase in order to pay off the order in the fixed term time frame, the MMP is increased.
If the customer has a balance, adds another purchase to the plan, and the new balance would cause the MMP to be calculated at a lower amount, the MMP is NOT changed. In most situations, the MMP is not recalculated if the result is a lower amount.
However, if the customer had a balance, paid it down to a zero balance, and then adds a purchase to the plan, the MMP is recalculated based on the new plan balance. In this situation, the MMP could potentially be lower than the original MMP.
Per Sales Order - The MMP is calculated for each completed sales order.
When a sales order is partially completed, the MMP amount is updated for each completion so that the customer total MMP amount for the sales order is as defined on the Revolving Worksheet.
Once all deliveries on the order are completed, the system sets the MMP for the last partial shipment to the full amount of the MMP and resets the previous shipments' MMP's to zero.
When payments to multiple invoices for the same order are received, the payment amount is evenly divided and applied to each invoice, based on the total MMP amount.
Using a Fixed Table - The minimum monthly payment is a fixed amount each month, and is based on the amount being financed rather than the term. The system uses the Finance Level/MMP Table to calculate the MMP amount. You can access this table via the Actions button at the bottom of this tab.
As a Fixed Amount - The MMP amount is manually entered using a grid of monthly terms and projected MMP amounts as a guideline. If you select this plan type, the Minimum and Maximum Term Months fields become active.
Per Sales Order Using a Fixed Term - The MMP is calculated automatically for each completed sales order based upon the amount being financed and the term established for the plan. When you select this calculation type, entry in the Fixed Term is ____ Months field is mandatory.
When a sales order is partially completed, the MMP amount is updated for each completion so that the customer total MMP amount for the sales order is as defined on the Revolving Worksheet.
Once all deliveries on the order are completed, the system sets the MMP for the last partial shipment to the full amount of the MMP and resets the previous shipments' MMP's to zero.
When payments to multiple invoices for the same order are received, the payment amount is evenly divided and applied to each invoice, based on the total MMP amount.
Fixed Term
MonthsUse
this field to indicate the term length, in number of months. This field
is only active if you select As a Fixed Term or Per Sales Order Using
a Fixed Term in the Calculate MMP field. If you select either of these
calculation methods, you must specify the term length in this field.
The minimum/maximum
term range that you set via these next two fields is used to establish
the Fixed MMP Table grid that can be displayed during plan creation. For
example, a Fixed MMP Amount plan with a minimum monthly term set to 6
and the maximum monthly term set to 24 months displays a grid with months
6 through 24 and their corresponding MMP amounts. The MMP amounts that
are displayed in the grid are defined as including the principal, interest
and insurance amounts.
Minimum
Term MonthsIf
you select As a Fixed Amount at the Calculate MMP field, you must enter
a value in this field. Indicate the minimum number of term months allowed
when financing with this revolving plan. Valid entries are from 1 to 99
and must be less than the maximum setting.
Maximum
Term MonthsIf you select As a Fixed
Amount at the Calculate MMP field, you must enter a value in this field.
Indicate the maximum number of term months allowed when financing with
this revolving plan. Valid entries are from 1 to 99 and must be greater
than the minimum setting.
You can use this optional field to enter the Minimum Monthly Payment (MMP) amount that can be assessed for this plan. During cycling, the MMP amount is calculated based upon your Sales Tax Settings and plan settings and then compared with the value you entered here. If the calculated MMP is lower than the amount in this field, the amount you entered here is used as the MMP.
You can edit this field and change the lowest MMP allowed for this
plan. However, only new customer revolving financing is affected by
this change. Pending or active revolving plans entered for a customer
before you edited the lowest MMP are not affected.
% of the BalanceIf you
select Using a Percentage at the Calculate MMP field, you use this field
to indicate the percentage rate. When the MMP is calculated, the system
bases the calculation on the percentage indicated here and the total revolving
balance (includes long term & short term revolving receivables).
Use this mandatory field to indicate the base interest percentage rate for this plan. Once you enter the percentage here, the Percentage Break Level Table is automatically updated with a break level of 0 and the rate you entered here. If you add levels and rates to the Percentage Break Level Table, this field becomes inactive. If you enter a rate in this field and do not update the table with additional levels and rates, the percentage in this field is used.
Use Prime Interest RateTo use
the Prime Interest Rate U.S. Prime Rate commonly used by lending institutions as an index or foundation rate for short-term loans. when calculating
interest for this plan, check this box. When you check this box, the prime
interest rate from your Revolving
Receivables Control Settings, plus the base rate from the Percentage Break Level Table,
are used for interest calculations. If you leave the box unchecked, the
rate from the Percentage Break Level Table is used.
Calculate
Interest onIndicate whether you want
the system to calculate interest for this plan based on the Monthly Balance
at the time of cycling or based on the Average Daily Balance at the time
of cycling. The default setting is Average Daily Balance.
Charge Late FeesCheck the box if you want
to assess late fees on late monthly payments for this plan. If you leave
this box unchecked, late fees are not assessed on overdue payments.
Activate in Sales OrderIf you
want to be able to use this revolving plan as payment from within order
entry, check the box at this field. If you do not check the box at this
field, you cannot access this plan from within order entry.
Payment AgreementThis field is active only
if the Allow Payment Agreement setting in Revolving
Receivables Control Settings is checked. To use this revolving plan
for processing Payment
Agreements, check the box. Otherwise, leave the box un-checked.
Check this box to print the credit agreement.
Check this box to permit deferred payments on this revolving plan. The default setting is checked. When checked, revolving payments due for this plan are eligible to be deferred through Plan Deferment and Import Revolving Plan Deferments. When unchecked, revolving payments due for this plan are ineligible for deferment. Ineligible revolving payments are not displayed in the Plan Deferment process and are not deferred by the Import Revolving Plan Deferments process.
Check this box to print the form associated with the addendum when using the specified plan. Use the below Addendum Form Name field to choose the template to be used when printing the form.
Use Configure Document Signature Capture and Configure Document Archive to establish parameters for capturing electronic signatures and business document archiving, respectively. If these features are enabled and the appropriate signature capture hardware exists, the signature capture ceremony is launched and this signed business document is archived.
Use this field to choose from the list of Revolving Plan ELP form templates using Design Enhanced Laser Forms. This setting is mandatory only when the above Print Addendum Form setting is checked.
Use this field to specify how you want the system to apply hold codes when orders are financed with this revolving plan. Your options are:
No Credit Check - New pending plans do not go on revolving credit hold.
Revolving Hold - The system checks the amount financed with the customer's credit limit. If the amount financed exceeds the credit limit, the order is placed on F1 credit hold.
Unconditional Hold - All new pending revolving plans are placed on F1 credit hold.
ReceivablesUse this mandatory field
to indicate the G/L account number to which long term receivables is posted.
Click the action button at this field to access the GL
Account Entry Screen, which you can use to specify the account and
(optional) cost center.
Earned InterestUse this mandatory field to
indicate the G/L account number to which earned (paid) interest is posted.
Click the action button at this field to access the GL
Account Entry Screen, which you can use to specify the account and
(optional) cost center.
Unearned InterestUse this mandatory field
to indicate the G/L account number to which unearned (cycled) interest
is posted. Click the action button at this field to access the GL
Account Entry Screen, which you can use to specify the account and
(optional) cost center.
Click the Actions button and select from the following:
Percentage Break Level Table - Establish and maintain the APR (Annual Percentage Rate) The annual rate charged for borrowing; includes interest rate and other required lender fees (Annual Percentage Rate) break level table, used to determine the base interest percentage rate for the selected plan.
Finance Level/MMP Table - Access the Payment Type Revolving Finance Level/MMP Table screen, where you can establish and maintain the MMP table. This table is used only with plans that have the Calculate MMP field set to As a Fixed MMP Amount.
You can use the fields on this tab to set up promotional plans that offer special interest rates and/or no payments for a specified time period. The tab also includes additional settings you use to control how this plan can be used.
If you change or add a promotion via the fields
on this tab for an existing payment plan, only newly activated customer
plans are affected. New orders entered for customer plans that were active
prior to your edits are not affected by the new/modified promotion settings.
Use these fields to establish a special interest rate promotion.
If you are offering a promotional interest rate with this plan, enter the percentage rate in this field. Once you enter a value, the following fields become active.
If you entered a Percentage, you must enter either an expiration date here or a number of days in the Valid For # Days field. Specify the date on which the promotion ends. After this date, the promotional interest rate is no longer used and the system reverts back to using the rate you established on the General tab of this routine. If you enter a date here, the Expires on the Cycle Date field is inactive.
If you entered a Percentage, you must enter either a number of days in this field or an expiration date in the Expires field. Specify the number of days that this promotion remains valid. After the number of days has been exceeded, the promotional interest rate is no longer used and the system reverts back to using the rate you established on the General tab of this routine.
This field is active only if you entered a Percentage and entered a value in the Valid For ___ Days. It is not active if you entered a date in the Expires field. The default for this setting is unchecked.
If you check the box at this field, the expiration date for the promotional interest period for each order posted to the plan is the first cycle date after the end of the promotional interest period. If you leave this check box blank, the promotional interest expiration date is calculated by adding the Valid For ____ Days to the transaction date.
If you remove the Percentage or the Valid For Days, this field is cleared.
If you offer a plan with no payments due for a specified time period, use the Until or For # Days field to indicate the time period during which no payments are due from the customer.
UntilYou can use this field to
indicate the date when this special "no payments due" period
ends, or you can leave this field blank and enter a number of days in
the next field. Once the date in this field is reached, normal payment
cycling resumes.
For DaysIf you
leave the Until field blank, you can use this field to enter a number
of days during which no payments are due from the customer. Once the number
of days has been exceeded, normal payment cycling resumes.
Can be Applied
as a DepositCheck the box if you want
to use this plan as the payment method when deposits are applied on a
customer order. If you do not want to use this plan to apply deposits
on orders, leave the box blank.
Can be Applied
as a Finance Plan if a Revolving Deposit is on the OrderCheck
the box if you want to use this plan to finance an order that has a revolving
deposit applied. If you do not want to use this plan for financing on
orders with revolving deposits applied, leave the box blank.
Can be used
to Purchase Gift Certificates/CardsCheck
the box if you want to use this plan to purchase gift certificates/cards.
If you do not want this plan used to purchase gift certificates/cards,
leave the box blank.
Allow Other Plans to Transfer to this
Plan
If this revolving plan can be set as a Transfer To plan for other revolving plans (delinquent transfers or transfers at the end of the promotional interest period), check the box at this field. If you leave this box blank, this plan cannot be designated as a Transfer To plan for other revolving plans. The default for this field is unchecked.
Once this box is checked and there are plans set to transfer
to this plan, you cannot clear this check box.
Transfer Balance to Plan if
Payment is Days Late
Use the entry boxes at this field if you want the system to transfer an existing plan's balance to another plan when the payment due is X number of days late. In the first box, enter the revolving plan code to which you want the balance transferred. You can click the Search button to select a code from the list of plans that are set as "Transfer To" plans via the "Allow Other Plans to Transfer to this Plan" field.
In the second box, enter the number of days that the payment must be late before the balance is transferred to the plan you specified. When customer accounts are cycled, customer revolving plans are evaluated to determine if they are delinquent. If they are eligible to be transferred, they are automatically transferred to the plan that you specified in this field.
Transfer Balance to Plan when
promotion expires
This field is active if a promotional Percentage is specified for this plan. Use this optional field to specify the plan to which you want the balance transferred when the promotional interest period ends. You can click the Search button to select a plan code from the list of open plans designated as able to be Transfer To plans. If you leave this field blank, plan balances do not transfer at the end of the promotional interest period.
Use this tab to define a period during which the plan is valid and to define plan restrictions by corporate or franchise store (if franchising is active), individual store location, state and/or minimum credit score.
When you enter a revolving plan manually in the order entry process and the system determines it is not eligible, an error message displays giving you the option to review the plan requirements. You can click yes to view the message(s) in the Revolving Plan Restriction Results window or click No to return to the payment tab.
If this plan is set to allow transfers from other plans, the transfer feature in cycle processing overrides the restrictions on this tab.
Valid From, ThroughUse these
optional settings to establish a time period during which the plan is
valid. You can set both a start and end date, or use one of the fields
to establish a start or end date only. Dates entered in these fields must
be greater than or equal to the system date.
Use the fields in this beveled area to allow plans to be restricted by location.
Use this field to define restrictions by location, or to indicate that there are no restrictions by location on the use of this plan. Your options at this field are:
No Restrictions - This is the default setting for this field. If you do not want the use of this plan restricted by location, select No Restrictions.
Corporate Locations - To restrict the use of this plan to corporate locations only, select this option. When you select this option, you can place further restrictions by Store and State. (See those fields below.)
Franchise Locations - To restrict the use of this plan to franchise locations only, select this option. When you select this option, you can place further restrictions by specific Franchise locations, Store, and State. (See below.)
Specific Store Locations - To restrict the use of this plan to specific store locations, select this option. When you select this option, you then need to indicate one or more locations in the Store field.
If you select Franchise Locations at the Restrict Use To field, this field is active. Use this field to indicate the specific franchise locations where this plan is available for use. One or multiple locations can be selected. Click the Search button to select from a list of locations where a franchise number is indicated. Click the Action button to access the Multiple Selection Lookup Window, where you can select multiple franchise locations.
Any location set up as a franchise via the Warehouse/Store
Location Settings cannot also be a corporate location.
StoreIf you select Corporate Locations,
Franchise Locations or Specific Store Locations at the Restrict Use To
field, this field is active. Entry is mandatory if you select Specific
Store Locations. Use this field to indicate one or multiple specific locations
where this plan is available for use. You can click the Search button
to select from a list of locations or click the Action button to access
the Multiple
Location Selection Window, where you can select multiple locations.
StateYou can use this optional
field to indicate one or multiple states where this plan is available
for use. Restrictions by state override those placed by location. Click
the Search button to select from a list of state codes, or click the Action
button to access the Multiple
Tax Jurisdiction Selection Window, where you can select multiple state
codes.
Minimum Credit ScoreYou can use this field to
restrict the use of this plan to only customers whose credit score is
at or above the score you indicate here. Entry in this field must be a
whole numeric value greater than zero. If you do not want to restrict
this plan by credit score, leave this field blank.
Minimum Financed AmountYou can
use this optional field to indicate the minimum amount that can be financed
with this plan. If you do not require a minimum financed amount with this
plan, leave the field blank.
If the box is checked at this field (default setting), you can finance an order with this revolving plan, even if this plan already exists on an open pending order for the customer.
If the box is not checked, and the customer has a pending financed order with this plan, you cannot finance the new order with this plan. A message is displayed when you enter the plan code and you must either finance the new order using a different plan code or add the new merchandise to the existing pending order.
Required
Percentage Paid before Add-on Allowed
You can use this field to set a required percentage that a revolving plan must be paid down before allowing an add-on. This setting may be assigned a value between 0-100. If you leave this field blank, no add-on is allowed.
If this setting is set to zero, then add-ons to this plan are allowed pending the customer's credit limit and any other restrictions assigned to the plan regardless of the current balance of the plan. If this setting contains a value of 1 to 100, the existing plan must be paid down to this percentage or below before an add-on is allowed.
In order for a user to override the required percentage restriction, they must have access via the Revolving Worksheet; Override Required Percentage Paid for Add-on field in Receivables Security or obtain an security override by an authorized user.
The calculation to determine what percentage of the plan balance has
been paid is calculated by dividing the sum of the remaining balances
for all invoices on the plan by the sum of the original amount for
all invoices on the plan.
For example, a customer financed $1,000 on a revolving plan and currently
has a plan balance of $500. The Required
Percentage Paid before Add-on Allowed is set to 40%. The
customer's balance is paid down by 50% so an add-on would be allowed.
Using this same example, if the customer's plan balance was $750 it
would only be paid down by 25% therefore an add-on would not be allowed.
Unless the restriction was overridden by an authorized user.
You can use this optional field to restrict the use of this plan to only customers whose credit score is at or below the score you indicate here. Entry in this field must be a whole numeric value greater than zero. If you do not want to restrict this plan by credit score, leave this field blank. If a minimum credit score has been defined, this score must exceed the minimum score.
If a maximum credit score has been defined in this plan, the credit score for the customer or co-applicant (whichever is higher) is compared to this score. If the score is higher than the maximum defined in this setting, the plan is not available for use.
You can use this optional field to indicate the minimum amount that must be deposited in order to use this plan. The maximum deposit allowed is 999999.99. If the minimum deposit has been defined for a plan, a deposit must be added to the order prior to the entry of the revolving plan. If the minimum deposit amount has not been met, the plan is not available for use.
Click the Action button at this optional field to access the Minimum Deposit Percentage Table, where you can define a table using minimum credit scores and corresponding percentage rates. To calculate the minimum deposit using the table, the system uses the customer or co-applicant (whichever is higher) credit score and then finds the corresponding percentage rate in the table. The percentage is multiplied by the order net total to determine the required minimum deposit amount.
The system checks both of the minimum deposit fields above. If an amount is entered and a percentage is also defined, the minimum deposit required is based on both settings and the higher of the two deposit amounts is the required amount. For example, if the amount calculated using the percentage table is $100, but the minimum deposit amount is set to $120, the deposit amount required is $120.
If this optional field contains a value and the customer is past due this number of days or greater, this plan is not available for use for that customer. The calculation for past due days uses the same concept used to determine ‘C2’ credit holds. Leave this field blank for no restriction by Past Due Days.