Using the #OVERDUE Algorithm Group
The #OVERDUE algorithm group handles payments for overdue charge line items. If you use the option to create overdue charges by item line, you can create payment predictor methods that use this algorithm group. You assign a sequence number to each entry reason for the overdue charge (FC-01) item entry type on the Item Entry Type - Selection page. Payment Predictor uses this sequence number to determine the order in which to pay the overdue charge line items. The #OVERDUE algorithm group handles payments based on certain conditions:
-
Payment Predictor applies payments and any credit amount available to all overdue charges first before the remaining amount is disbursed to the principal amount.
-
Payment Predictor applies a partial payment to the first item after the last fully paid item in the sequence if insufficient funds are available to pay for remaining open overdue charge line items.
The sequence is determined by due date in ascending order. If any credit amount is available, Payment Predictor applies it as part of the payment.
To set up your system to use the #OVERDUE algorithm group, perform these tasks:
-
Set up the sequence number for each entry reason for the overdue charge item entry type.
-
Set up a payment predictor method containing the #OVERDUE algorithm group.
-
Assign a payment predictor method that contains the #OVERDUE algorithm group to customers.
Example: #OVERDUE Algorithm Group
This section provides an example of how payment predictor applies payments to overdue charge line items.
This table lists the sequence numbers that are assigned to the entry reasons for the automatic entry type for finance charges for this example:
| Entry Reason | Sequence Number |
|---|---|
|
ADMIN |
1 |
|
PNLTY |
2 |
This table lists items and finance charge line items that are open for a customer:
| Item | Line Number | Due Date | Entry Type | Entry Reason | Balance Amount |
|---|---|---|---|---|---|
|
IT_OC1 |
1 |
March 17, 2002 |
OC |
ADMIN |
16.16 USD |
|
IT_OC2 |
1 |
March 17, 2002 |
OC |
ADMIN |
32.32 USD |
|
IT_OC2 |
2 |
March 17, 2002 |
OC |
FIN |
32.32 USD |
|
IT_OC1 |
2 |
March 17, 2002 |
OC |
FIN |
16.16 USD |
|
IC_OC1 |
3 |
March 17, 2002 |
OC |
PNLTY |
16.16 USD |
|
IC_OC2 |
3 |
March 17, 2002 |
OC |
PNLTY |
32.32 USD |
|
IT_OC1 |
0 |
March 3, 2002 |
IN |
Not Applicable |
1000.00 USD |
|
IT_OC2 |
0 |
March 3, 2002 |
IN |
Not Applicable |
2000.00 USD |
This table lists the sequence numbers that Payment Predictor would apply to the items to determine the payment order:
| Item | Line Number | Due Date | Overdue Charge Sequence Number |
|---|---|---|---|
|
IT-OC1 |
1 |
March 17, 2002 |
1 |
|
IT_OC2 |
1 |
March 17, 2002 |
1 |
|
IT_OC1 |
3 |
March 17, 2002 |
2 |
|
IT_OC2 |
3 |
March 17, 2002 |
2 |
|
IT_OC1 |
0 |
March 3, 2002 |
9 |
|
IT_OC2 |
0 |
March 3, 2002 |
9 |
|
IT_OC1 |
2 |
March 17, 2002 |
9 |
|
IT_OC2 |
2 |
March 17, 2002 |
9 |
This table shows what the results would be if you applied a 50.00 payment to the customer.
| Payment Amount | ITEM ID | ITEM Line | TYPE |
|---|---|---|---|
|
16.16 USD |
IT_OC1 |
1 |
PY |
|
32.32 USD |
IT_OC2 |
1 |
PY |
|
1.52 USD |
IC_OC1 |
3 |
PY |
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