Difference between promise to pay and installment plan

[Former Member]

Hello Experts,

Can you please explain major difference between promise to pay and installment plan functionality? which one is better?

Thanks,

James.

[former_member190606 · Accepted solution]

Hello James,

Following are the major differences in promise to pay and installment plans

1)When you create installments, new statistical items are created by the system using the main transaction of installments in the table of open items DFKKOP. However, new statistical items are not created in the case of promise to pay. Just a new promise to pay document is created from where you can see individual items and amount due to date etc

2)When you create an installment, you have the option of viewing installment amounts in the account balance display or the original document(against which the installment was created). Incase of promise to pay, you cannot see individual promise to pay items in account balance display(FPL9). you only see the original document

3)When you create an installment against a recievable, the ABWBL field in DFKKOP is updated with the document number of the installment plan created. Same is true for promise to pay documents as well

4) Installments nt possible for items that have been sent to coll agencies. This is not true for P2P

In my perspective, installments is a very flexible way of deferring due dates and breaking line items. If you use the functionality for doing it you will have much wider options in terms of clearing control and reporting. However, P2P(as i see it) is just an agreement with consumer and is not as flexible as installments and might make you life a little difficult

I hope this will help. I'd suggest you also take input from other experts here. Thanks!

[AmlanBanerjee]

Hi Nick,

The major difference between Promise to pay and Instalment plan is that in promise to pay (P2P) you can perform the payment instalment and payment deferral from one single screen

In other words, P2P is an enhanced version of Instalment plan.

Promise to pay is a unqiue functionality of EHP 4.0 in which you can build in your on logic for adjusting the payment instalment plan line items.Event 0185 to 0189 are nornally used for the purpose.

There is a seperate valuation mass program for promise to pay (Transaction Code-FP2P), which evaluates the existing promise to pay and cancels\deactivates them, which is not there in instalment plans.

Morever, you can set only the Promise to pay items in direct debit, so as to ensure the smooth inflow of the payments, which is not here in instalment plans.

In my opinion, P2P is better, as it gives a lot more flexibility.

Hope it helps...

Thanks,

Amlan