Payment plans allow individuals to spread payments over several months in order to pay off their debt to the organization. Payment Plans are set up on the Payment Plan Control table. You can offer several plans with various payment options.
Finance charges are often assessed as a part of payment plans, and you can assign different percentage rates per plan. You have the option of assessing a finance charge on either the subsidiary balance based on actual charges or on any overdue amounts from the payment plan.
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If an individual owes $5,000 that will be paid in increments of $1,250 per month, will you calculate the finance charge based on the $5,000 balance for each payment (subsidiary balance) or on any unpaid amount of the $1,250 due each month (payment plan balance)? |
After you create a new payment plan, save the changes and assign the new payment plan as the default for those individuals for whom it will be used. Once the payment plan is assigned, generate the payment plan for those individuals. You will now be able to apply payments and create statements for the new payment plan.
