Payment Plan Control Window

Use this window to define Standard, Tailored, and Loan (if licensed) payment plans, and what percentage of the year's estimated cost is due each billing period. Use this window to enter a payment plan code, which, via the (Payment Plan tab) of the Subsidiaries window, can be tailored for each individual.

All percentages must equal 100%. Upon saving, the system performs error checks to ensure the sum of the percentage values equal 100%. If the Number of Months value is 12 or less and the Month Percentage values do not equal 100%, an error message will display when you attempt to save the plan. If the Number of Months is greater than 12 and the Month Percentage values do not equal 100%, the Total Plan Months and Percentages window will open, displaying the percentages for each month in the plan. To correct the percentages, click Close and you will return to the Payment Plan Control window . Correct the month percentage values.

If you define several payment plans, you should have them all start with the same month.

For example, suppose plan A1 is a six-month plan and has a percentage entered for months 1 - 6. If you have a four-month plan that starts two months after plan A1 , you should fill in a percentage for months 3, 4, 5, and 6 on the four-month plan, leaving months 1 and 2 blank. Both of these plans start with month 1, but we don't have a value for the second plan until month 3 because we want the second plan to take effect two months after the first plan.

If you enter a value greater than 12 in the Number of Months column, the system will assign the value entered in Month 1 as the value for Month 13 , the value in Month 2 as the value for Month 14 , and so on until all the month percentages are assigned.

The month number is not necessarily a calendar month. For example, Month 1 will not necessarily be January. It will be the first month when your payment plan begins.

Columns

*These columns are available when the Loan Plan Type is selected.

** The Deduct Unposted Financial Aid transactions? and Deduct Preliminary Financial Aid transactions? checkboxes are available when the Payment Plan Basis is AR Posted Balance.

How To

Payment Plan Example

The following is an example of a payment plan and how it can be entered into the Payment Plan Control table. You may have a plan with four payments in the following months: September, November, February and April. You will bill 25% each time and charge an 18% finance charge on the subsidiary balance for late payments. This plan would appear in the control table as shown below:

Payment plan code: P1 Description: 4 Easy Payments

Finance charge percentage 18.00 Balance for Finance charge: Subsidiary Balance

Month 1	Month 2	Month 3	Month 4	Month 5	Month 6
Month 7	Month 8	Month 9	Month 10	Month 11	Month 12
25.00	25.00	25.00	25.00

Using this plan, if an individual's estimated cost is $10,000, each monthly statement run will reflect a 25% charge or $2,500.

Perhaps you estimate that an individuals cost is $10,000 a year at your organization, and charges are generated in September and January. Also, you have one payment plan spread out over eight months and another plan with payments in four months.

	Fall Term				Spring Term
	Sept	Oct	Nov	Dec	Jan	Feb	Mar	April
Actual charges	$5000				$5000
Payment plan 1	$2500		$2500			$2500		$2500
Payment plan 2	$1250	$1250	$1250	$1250	$1250	$1250	$1250	$1250