Payment Receive in Installment with Interest

devengupta1973

Hi,

How to manage customer payment in installments with interest.

Case :
Invoice Amount = Rs. 1,00,000.00
Interest Rate = 18%
Payment Duration = 6 Months
Payment in Installment = Rs. 18167 pm (with interest)

Regards,

Devendra Gupta

manishgoyal

by using prepayment you can do it.

chengalasettyvsrao

When it comes interest amount , select the G/L account ,enter the interest amount in the Sales order line level and by using prepayment Functionality book the invoice and receive the payment partially.

devengupta1973

Thanks for reply but our requirement is different.

Prepayment is used for only for down payment (advance) before invoicing the goods. But in our scenario is differ. Customer will start paying his installments after getting the invoice i.e. customer receive the goods.

Regards,

Devendra Gupta

manishgoyal

you can handle this by bank receipt.here you have to use apply entry.

devengupta1973

Is there any standard method in NAV (without customization) to manage invoice amount + 18% interest amount in 6 parts (six debit entries) their due dates will be like 15/06/yy, 15/07/yy, 15/08/yy and so on. When customer pays the amount it will adjust the debit entries through apply the oldest or by manual method.

Regards,

Devendra Gupta

manishgoyal

interest calculation after due date automatically calculate according to setup.

chengalasettyvsrao

devengupta1973 wrote:

Is there any standard method in NAV (without customization) to manage invoice amount + 18% interest amount in 6 parts (six debit entries) their due dates will be like 15/06/yy, 15/07/yy, 15/08/yy and so on. When customer pays the amount it will adjust the debit entries through apply the oldest or by manual method.

You have to issue the Finance Charge memo manually to customer with interest amount.

ssingla

chengalasettyvsrao wrote:

devengupta1973 wrote:

Is there any standard method in NAV (without customization) to manage invoice amount + 18% interest amount in 6 parts (six debit entries) their due dates will be like 15/06/yy, 15/07/yy, 15/08/yy and so on. When customer pays the amount it will adjust the debit entries through apply the oldest or by manual method.

You have to issue the Finance Charge memo manually to customer with interest amount.

Do you really think that the standard functionality of finance charge memo meant for charging customer who delays in payment will satisfy the need of the company in the bussiness of charging interest on regular invoices like EMI :thumbsdown:

Deven you will need to customize the solution and there is no standard way to acheive this.

ivankoletic

Agree, not much you can do except customize.
However there is Installments functionality available in Italian Cronus.
It works throuhg payment terms allowing you to set multiple payment terms. This means when you post an invoice with payment term that calculates due dates as (+30d + 60d and 90d) you'll get 3 customer ledger entries with different due dates.
Having this setup may make sense then running the finance charge memos since due dates will be different.

raveendran.s

ivankoletic wrote:

Agree, not much you can do except customize.
However there is Installments functionality available in Italian Cronus.
It works throuhg payment terms allowing you to set multiple payment terms. This means when you post an invoice with payment term that calculates due dates as (+30d + 60d and 90d) you'll get 3 customer ledger entries with different due dates.
Having this setup may make sense then running the finance charge memos since due dates will be different.

I agree with the point of Customization for this Functionality.

Even in that case, the point to be considered is the Due date for payment.

let take a scenario, I need to pay 2000/- per installment and total 6 installments.
1st Due date is 17th Jan

2nd Due Date should be 17th Feb or 16th Feb (add 30D or 31D on next month)

3rd Due Date Should be ____???? you should add 30D or 28D or 29D

What if the Calculated Due Date is Declared as holiday in the NAV Calendar?

So, it is better to go with Manual process, where the Business user will have the control on the Dates, or else customize it in such a way where users will have a control to change the calculated Due Date and then to post.

ivankoletic

Agree, the reason I mention this IT functionality is that it provides you with multiple CLEs out of the box.
You can always go in CLEs and modify Due date or use smarter date formula to achieve what you want.

Anyhow, there's no simple solution without customization here.

Sog

raveendran.s wrote:

let take a scenario, I need to pay 2000/- per installment and total 6 installments.
1st Due date is 17th Jan

2nd Due Date should be 17th Feb or 16th Feb (add 30D or 31D on next month)

3rd Due Date Should be ____???? you should add 30D or 28D or 29D

What if the Calculated Due Date is Declared as holiday in the NAV Calendar?

So, it is better to go with Manual process, where the Business user will have the control on the Dates, or else customize it in such a way where users will have a control to change the calculated Due Date and then to post.

First, calculation of due date is not limited to days. also weeks, months, years can be used. +1M for your calculation and your due date is always the 17th. See your local help for more information about calculations
Next, if the DUE date is on a (bank) holiday, the customer should transfer the money before that day. So there is no need to check/avoid this.