Create a Finance Contract

You create a finance contract to define the terms and conditions of the contract. After configuration, define the price components required to set up the contract in the finance contract product offer, and combine the contract and product offer as the basis for a catalog item.

Procedure

  1. In Contracts, click the Finance Contracts tab.
  2. In Finance Contracts, click New Finance Contract.
  3. In Create New Finance Contract:
    1. In Name, enter a unique name.
    2. (Optional) In Description, enter descriptive information about its purpose.
    3. (Optional) In External ID, enter any alphanumeric character to serve as a unique ID on this pricing object. The external ID can be used for any reason that is meaningful to your implementation of MATRIXX Engine.
    4. Click Create.
  4. Specify the contract terms and conditions.
    1. In Start Date, select the contract term start date. This is the activation date.
    2. In Contract Period, select the contract term period as week, month, or year.
    3. In Contract Interval, enter the number of contract periods in the finance contract.
    4. In Period Type, select an increment for the purchased item cycle period as Minutes, Hours, Days, Weeks, Months, or Years.
    5. In Period Interval, enter a number to define the length of the cycle period.
  5. Specify the late charge details.
    1. In Late Charge Basis, select the basis for the late charge and termination penalties as Fixed or Percent of installment.
    2. In Late Charge, enter the late charge amount or installment percentage based on the selected late charge basis.
    3. In Late Charge Grace Period Type, select the grace period type as hour, day, week, month, or immediate.
    4. In Late Charge Grace Period Coefficient, enter the amount of time for the selected grace period type. For example, 2 days, 3 hours. This field is required when Late Charge Grace Period Type is set, unless Late Charge Grace Period Type is set to immediate or is empty, in which case Late Charge Grace Period Coefficient is disabled (not required).
  6. Specify the termination charge details.
    1. In Termination Charge Basis, select the basis for late charge penalties as Fixed, Percent of outstanding principal, or Fixed plus percent of outstanding principal.
    2. If you selected Fixed as the termination charge basis, enter the termination charge amount in Termination Charge Fixed.
    3. If you selected Percent of outstanding principal as the termination charge basis, enter the percentage of the outstanding principal in Termination Charge Percent.
    4. If you selected Fixed plus percent of outstanding principal as the termination charge basis, enter the fixed amount in Termination Charge Fixed and the percentage in Termination Charge Percent.
  7. (Optional) Select Termination on Early Payoff to specify the contract status upon early pay-off. When selected, the finance contract status is set to terminated upon early principal pay-off. When deselected, the finance contract status is set to Paid-off upon early principal pay-off.
  8. In Balance Class, select the currency balance class ID used to impact all payments.
  9. In Balance, select the contract debt balance template ID used to create debt balance and late charge debt balance for missed payments and late charges.
  10. (Optional) In Default or Minimum Down Payment Amount, enter the default or minimum down payment amount. This value can be overridden at purchase time through the SubMan purchase APIs.
  11. Click Save.