Working with Payment Schedules

Organizations have the option of allowing customers to make multiple payments on an order through a payment schedule. Rather than requiring the order be paid in one full payment, payments can be spread out over a specified period of time. A payment schedule is comprised of defined “scheduled payments”, which are assigned a due date and dollar amount. The sum of all scheduled payments must add up to the order line total.

Typically, if a payment schedule is being used for a membership or subscription, then a full payment of the first scheduled payment would activate the membership or subscription.

Short-pay rules are enforced for order lines that have a payment schedule. The short-pay rule is only enforced against the first scheduled payment.  If the short-pay rule for the order line product is REJECT, the first scheduled payment must be paid in full AND before the due date of the next scheduled payment in order to activate the order.

Certain subsystem products can be configured to automatically generate a payment schedule for orders. These subsystems include Memberships, Subscriptions and Exhibition products, as well as for Fundraising pledges. For more information, please see:

• Defining Membership Product Rate Code Extensions

• Defining Subscription Product Rate Code Extensions

• Defining an Exhibition Payment Schedule

• Defining Fundraising Gift Rate Code Extensions

If an order with a payment schedule is renewed, the payment schedule will NOT renew unless there is a payment schedule defined on the product.

When a payment schedule is created, the system creates a deferred receipt transaction (Type 9) for the total amount due in the future. If a batch is open, the system will calculate the deferred receipt transaction amount based on the batch date, not the current date. For example, if today is January 3, but the batch that is open is dated December 28, the system will create a deferred receipt transaction for all amounts due after December 28.

Running the FAR680 batch process (or the EFT680 batch process if processing direct debit payments) recalculates deferred receipt amounts by comparing the due dates on the payment schedule against the FAR680 process date. For example, if the Process Date is 11/1 in the current year, then deferred receipt amounts will be decremented by all amount due on or before 11/1 of the current year.

The first step is to define the payment schedule. Next, you can modify various pieces of the payment schedule. Then, you can process automatic payments and manual payments, transfers, and refunds. Finally, you can review payment schedule balances and transactions.