Create a Payment Schedule

FlexNet Manager Suite 2019 R1 (On-Premises Edition)

Payment schedules track forthcoming and past payments related to licenses and assets, but do so only through the relevant contract.

A payment schedule can exist only in relationship with its parent contract. (They are not transferable.) The creation process permanently sets several values for the payment schedule.

To create a payment schedule:

  1. Open the properties of an existing contract with which to associate your new payment schedule.
    For example, you could navigate to Procurement > All Contracts, and search or filter to find your chosen contract. Then click the contract number to open its properties.
  2. Select the Payment schedules tab.
  3. Click Create a payment schedule.
    The Create a Payment Schedule page appears. Along with data entry field, it displays the Contract description and Contract type of the parent contract as a reminder.
  4. Complete the data entry needed for your payment schedule. Controls are listed here in screen layout order.
    Control Notes
    Name

    Enter a useful name for this payment schedule, remembering that you may need to choose this payment schedule from a list of similar-looking items.

    Payment schedule type

    The kind of transaction to which this payment schedule applies.

    The default value for the Payment schedule type varies, depending on the type of contract for which this payment schedule is being created. Typically it is set to the same as the contract type to which it is attached. You may over-ride the default selection if required. The selected type affects some other controls available later in the creation process. Choose from the following (most of which are self-evident):
    • Consulting services
    • EA Other Application — see next item
    • EA Professional Platform — Used for Microsoft Enterprise Agreements, and helpful for estimating projected true-up costs
    • General — a catch-all type when none of the more specific ones apply
    • Hardware maintenance and support
    • Insurance
    • Lease
    • Rent
    • Software license
    • Software maintenance and support
    • Subscription.

    Not editable once the payment schedule is created.

    Metric

    The measure to which the payment is applied, such as per machine or per license entitlement consumed. Also used to specify fixed payments that do not vary by such a metric.

    For the EA Other Application and EA Professional Platform types of payment schedule, the Metric is fixed at License true up and cannot be altered. For other types of payment schedules, choose one of the following values from the drop-down list:
    • Fixed — Use for regular payments of a known amount that does not change in the planned period of the payment schedule
    • License true up — Use to schedule payments required to achieve license compliance, for vendors who offer a retroactive purchase to cover excess consumption in the previous period
    • Per hardware item — Use for amounts that vary according to the number of computers at the time the payment is due (for example, where the total is calculated by multiplying a quoted value by the number of computers, such as for maintenance contracts)
    • Per license quantity — Use for amounts that vary according to the consumption of a software license at the time the payment is due (for example, a maintenance per head quotation that is to be multiplied by the consumption at the due date).
    Link this payment schedule to all new assets and licenses attached to the contract
    Determines whether hardware assets and licenses that get attached to the contract after this payment schedule is saved are to be covered by this payment schedule.
    Note: Any assets and licenses that are already linked to the contract at the time that this payment schedule is created are not linked to the payment schedule automatically. If you want to establish these links, work from the Assets and Licenses tabs of the payment schedule after it has been created.
    Set or clear the check box for Link this payment schedule to all new assets and licenses attached to the contract.
    • While this check box remains set, hardware assets and licenses linked to the contract are also linked to the payment schedule. (Thereafter, the links can be managed manually.)
    • While the check box is clear, no automatic links from hardware assets or licenses are created to this payment schedule. Operators can manage any required links manually.
    Notes

    You may include any free form text you prefer, either to document the payment schedule itself, or to record comments about individual payments arising from it.

    Frequency

    Sets how often periodic payments must be made (or whether a single lump sum pre-payment applies instead).

    Choose an option from the list (most of which are self-explanatory):
    • Lump sum — Use for a single payment that falls due at the start of the contract. When you choose this value:
      • The Payment term field is set to Pre-paid
      • The End date field is cleared
      • The Number of installments field is set to 1 (and cannot be changed).
    • Weekly
    • Monthly
    • Quarterly for payments falling due every three months
    • Yearly.
    Payment term

    The part of the terms of payment that specify the timing (that is, when payments fall due in relation to the period they apply to).

    For the EA Other Application and EA Professional Platform types of payment schedule, which have a fixed Metric of License True Up, the Payment term has the fixed value At the End of Each Period (because a true up pays at the end for additional consumption during the period just passed). For other types of payment schedule, choose from:
    • At the Beginning of Each Period — Payments fall due on the date in each period corresponding to the Start date, modified according to the Frequency setting.
    • At the End of Each Period — For payments in arrears, payments fall due on the date corresponding to the End date.
    • Pre-Paid — Used for lump sum payments (this term is only available when the Metric is Fixed). Note that this value is set automatically if Frequency is set to Lump sum.
    Start date

    The first day of operation for this payment schedule. If Payment term is set to At the beginning of each period, any periodic payments also honor this date. For example, if you set the start date as March 15, monthly payments due at the start of the period are all scheduled for the 15th of the month. Similarly, if that date is a Tuesday, weekly payments fall on Tuesdays; and annual payments are due each March 15.

    The default value is copied from the start date of the contract (if it is set; and if not, from today's date). Do one of the following:
    • Accept the default
    • Type in a different date
    • Click the calendar icon at the right of the field to use a date picker.
    End date

    The last day of operation for this payment schedule. If Payment term is set to At the end of each period, any periodic payments also honor this date. For example, if you set the end date as March 14, monthly payments due at the end of the period are all scheduled for the 14th of the month. Similarly, if that date is a Tuesday, weekly payments fall on Tuesdays; and annual payments are due each March 14.

    If you choose to enter the End date, the No of installments field is automatically calculated based on the Start date and the Frequency of payments. To enter a date, either type in a value or click the calendar icon (at the right of the field) and use the date picker.
    Tip: Alternatively, you can leave the End date blank, and it will be calculated from the Start date, Frequency, and No of installments.
    No of installments

    The total number of payments due over the entire life of the payment schedule.

    If you have already entered the Frequency, the Start date, and the End date, the No of installments is calculated automatically. Alternatively, you may leave the End date blank and enter the No of installments (which causes the closing date to be calculated for you).

    Obligated to pay

    Indicates whether there is a legal or contractual obligation to make payments listed in the schedule. Subsequently used to help project payments due over time.

    Set or clear the Obligated to pay check box, based on the facts. It is most common for a contract to include a legal obligation to pay for goods supplied or services rendered, so the normal case is to set this check box. When the payment schedule is created, your choice becomes the default assigned to each of the scheduled installments for payment. Subsequently, you can change the setting for individual installments to reflect changing circumstances (for example, if legal proceedings against a supplier removed or deferred the obligation to pay for particular periods).

    Actual/fixed amount

    The amount actually paid (as distinct from any forward projections).

    When the payment schedule is created, it is normal to leave this value blank (except perhaps for fixed single payments) to allow for future variance. Instead, use the estimated or budgeted fields to project likely costs. Then, as each installment is paid, you can enter the actuals, allowing you to trace variation from estimates or budget. (Alternatively, if the contract clearly specifies a regular payment, you may enter the amount in both this Actual/fixed amount field and the Estimated amount field. These values are then recorded for every installment, and you need to update only those actuals that vary from the estimation.)
    Tip: Enter the total amount of a single installment, and not a unit cost per computer or per license entitlement.
    Estimated amount

    Your projection of what each installment in the schedule is likely to cost.

    Type in the total amount expected for each installment. (Do not use a unit cost per computer or per license here.)
    Tip: If your enterprise has registered multiple currencies for use, you may specify the currency and exchange rate for this field (see Currency Settings). This becomes the default currency for display of these values in lists, such as the list of installments on the Installments tab. Best practice is to record the estimates in the same currency referenced in the contract, avoiding exchange rate issues over time.
    Budgeted amount

    The budget projection for this payment. Note that in summary widgets in dashboards, the estimated amount is used in preference to this value; but where there is no estimated amount, this Budgeted amount is used instead.

    Enter the amount that has been (or for future use, should be) budgeted to cover the expense of this projected payment. The budget amount must be pro-rated for the same period as payments are scheduled. For example, if you have $1200 in the annual budget, but payments are made monthly, you enter $100 here as the per-installment budget.
    Tip: If your enterprise has registered multiple currencies for use, you may specify the currency and exchange rate for this budget field (see Currency Settings). This becomes the default currency for display of these values in lists, such as in the list of installments on the Installments tab. You may need to choose whether to record the budget in the same currency referenced in the contract, avoiding exchange rate issues over time; or to use the currency of your budget.
  5. Click Create (in the bottom right of the page) to record your payment schedule.
    The payment schedule is listed in the Payment schedules tab of its parent contract. All of the individual payments for this schedule are listed in the All Payments page, and available to the Payments Due page (for display where any of its payments fall in the immediate future).