Pay Arrangement - Main
This page allows you to set up a payment arrangement. When you create a payment arrangement, the system performs the following functions:
- It creates a payment arrangement service agreement (PA SA). It sets the installment amount on this service agreement equal to the installment amount specified on this page.
- It transfers delinquent debt from each delinquent service agreement(s) to the new PA SA.
- As it transfers the debt to the PA SA, it creates synchronizing adjustments to reduce the PA SA's current balance by the amount transferred. Why? Because when delinquent debt is transferred to the PA SA, its current balance increases. Because current balance contains the amount the customer currently owes, this balance must be reduced because the customer is going to payoff the debt in installments (and therefore they don't currently owe anything on the PA SA).
Payment Arrangement Algorithm. The system only performs the above steps if the new PA SA's SA Type does not reference a Payment Arrangement algorithm. If your implementation uses a Payment Arrangement algorithm, then the logic performed when a payment arrangement SA is created will depend on this algorithm.
You could do the above functions by adding a new service agreement (using the service agreement page) and creating transfer adjustments (using the adjustment page). However, this is tedious. Rather, open to set up a payment arrangement.
Description of Page
SA (service agreement) Info and SA ID are displayed on every page. These values only appear after the payment arrangement service agreement (PA SA) exists on the database. The ID is a system assigned random number that stays with the payment arrangement service agreement for life. The SA Info is a concatenation of important details about the payment arrangement service agreement and its account.
The Current Balance that appears beneath SA Info contains the PA SA's current balance. When you initially set up a PA SA this balance will be zero. It is only non-zero if the customer has not paid a billed installment.
Payoff Balance beneath SA Info contains the PA SA's payoff balance. The payoff balance is the total amount to be paid off over the PA SA's life. It is only non-zero after delinquent funds have been transferred to the PA SA. This balance is only displayed when it differs from the Current Balance.
Refer to Current Amount versus Payoff Amount for more information.
Account contains the name of the main customer on the account. Account ID is the account associated with the PA SA.
The occurrences of Current and Payoff Balance below Account are the account's respective balances. These values are displayed to help you confirm exactly how much the customer currently owes versus how much they will have to payoff over time (remember, after you transfer funds to a payment arrangement, the amount transferred is reduced from the account's current balance).
The Candidate SAs scroll contains one row for each of the account's service agreements with aged debt. The system displays the respective age and amount of each SA's debt. All debt that is checked will be transferred to the PA SA when you click Create.
The system automatically indicates that all debt that isn't "new" (i.e., debt that the customer has seen on their bills) should be transferred to the payment arrangement. It does this by checking each parcel of aged debt.
Total is the sum of ALL current balances (not just the checked amounts) from all candidate SAs.
The next two fields are used to populate the arrangement amount (i.e., the amount the customer will be billed on each bill).
- The Installments field exists to calculate the Arrange Amount (the next field) when a time period has been stipulated. Simply enter the number of installments and tab out. When you tab out of the field, the system sets the Arrange Amount equal to New Payoff Balance / Installments.
Arrange Amount may not add up. The Arrange Amount is rounded up so that if you multiply the number of installments by the calculated installment amount, the result will be greater than the PA SA's payoff amount. Don't worry - only the actual dollar amount of the PA SA's total debt will be billed by the system. The last installment will be slightly lower than the other installments.
- Use the Arrange Amount field to define the payment arrangement's installment amount if a specific dollar amount has been stipulated. For example, if the customer agrees to pay off their delinquent debt by paying an additional $50 on each bill, you'd enter "50" in this field. Note - If you enter a dollar amount in this field and tab out, the system will calculate the number of installments and display the number in the Installments field.
New Payoff Balance contains the PA SA's payoff balance. This is the total amount of debt that will be paid off over the lifetime of the PA SA. This value equals the current payoff balance on the PA SA plus all selected debt from the Candidate SAs scroll.
Define the CIS Division and SA Type of the payment arrangement service agreement.
Payment arrangement SA types. There is a field on SA type called Special Role. Only those SA types with a role of Payment Arrangement may be selected.
Clicking Create (or Change)causes the system to perform the following:
- It adds / updates a payment arrangement service agreement (PA SA). It sets the installment amount on this service agreement equal to the installment amount specified on the page.
- It transfers delinquent debt from the delinquent service agreement(s) to the PA SA. The adjustment type used to transfer these funds is defined on the PA SA's SA type.
- It reduces the current balance on the PA SA by the amount of debt transferred to the PA SA. Why? Because when delinquent debt is transferred to the PA SA, its current balance increases. Because current balance contains the amount the customer currently owes, this balance must be reduced because the customer is going to pay off the debt in installments (and therefore they don't currently owe anything). The adjustment type used to transfer these funds is defined on the PA SA's SA type.
Payment Arrangement Algorithm. The system only performs the above steps if the new PA SA's SA Type does not reference a Payment Arrangement algorithm. If your implementation uses a Payment Arrangement algorithm, then the logic performed when a payment arrangement SA is created will depend on this algorithm.
You can transfer to the History page to view the transfer adjustments that were created by the system when it transferred the selected debt to the PA SA.
Clicking Break causes the PA SA to become broken. Please refer to the note below for what transpires when a PA is broken.
Break logic is in a plug-in. Please be aware that the logic that is executed when a payment arrangement is broken exists in a plug-in algorithm (plugged-in on the PA SA's SA type). An implementation can use either a Break Payment Arrangement algorithm which the system calls when a payment arrangement is broken, or the Payment Arrangement algorithm which the system calls when a payment arrangement is created, canceled or broken. These two algorithms are mutually exclusive on the SA Type.
Break Payment Arrangement Algorithm. The base package algorithm (SAT BREAK PA) expires the PA SA and cancels all related frozen adjustments, returning the debt to the original service agreements. Because this logic is in a plug-in, you can develop alternative logic and plug it in if the base package logic is not satisfactory.