Contract Offer Recurring Processing
Recurring processing for contract offers depends on the type of contract.
Cycle processing for finance contract offers does not include any explicit recurring pricing components. Based on the cycle definition of the purchased item defined in the finance contract offer, the installment is calculated based on the original principal in the offer and the terms of the finance contract. The recurring installment payments are charged implicitly based on the periodicity in the finance contract offer.
Service contracts support purchased item cycle recurring processing. If the recurring
charge is not paid at the end of the cycle, the recurring charge is charged on the
contract debit balance, and a missed contract payment event is generated.
Note: A
service contract cannot have a cycle holding balance or a grace period.