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88Good Afternoon,
We currently have a business system that closes sales for service and sends invoices into GP for the full amount of the service.
A sale of $1000 breaks down to $1000 less sales commission, less COG, leaving revenue.
A new proposal would involve allowing customers to make payment in installments.
Of course, this raises all sorts of questions, but I'm curious if others have done installments and how you have dealt with the question of how to record/report revenue (deferred vs. received).
For example, would a $2000 sale where the customer is able to make two payments be invoiced once or twice, but as $1000 invoices?
What if changes to the sale occur? For example, in some cases features are added that change the service price. We've been handling that as an additional invoice.
These sales require their portion of payment for the service to continue. So, the initial invoice covers the cost of the first segment and the second invoice covers the second segment. If payment is not received then the service ceases.
The business system will know to total sale amount, as well as track the installment information.
We do track a service identifier that, like customer would allow us to group invoices together.
I know this is likely a bigger discussion, but I wanted to at least provide some background and see what people might be doing to account for installments. Thank you.
- N
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