Setting Up Write Off Event Types

Write-off event types control what is done by a given write-off event. Select Admin > Credit & Collection > Write Off Event Type > Add to define your write-off event types.

Description of Page

Enter a unique Write Off Event Type code and Description for the write-off event type.

Select the Write Off Event Type. Permissible values are: Affect Credit Rating/Cash-Only, Cancel Agency Referral, Generic Algorithm, Refer to Agency, Send Letter, Create To Do Entry, Write Off using Distrib Code, and Write Off using SA Type. The following discussion describes the parameters that must be defined for each type of write-off event.

The Affect Credit Rating/Cash-Only write-off event type causes a credit rating demerit record to be linked to the account. This record is constructed using the following Parameters:

• Use Affect Credit Rating By to define this event's affect on the account's credit rating. This should be a negative number. An account's credit rating is equal to the beginning credit rating amount defined on the installation record or the account’s CIS Division plus the sum of credit rating demerits that are currently in effect. When an account's credit rating is less than the credit rating threshold defined on the installation record or the account’s CIS Division, the account's credit rating is displayed as an alert on Control Central.
• Use Affect Cash-Only Score By to define this event's affect on the account's cash-only score. This should be a positive number. When an account's cash-only score exceeds the cash-only threshold score defined on the installation record or the account’s CIS Division, the account is flagged as cash-only during payment processing and on Control Central.
• Use Months Affecting Credit Rating to define the length of time the demerit remains in effect. This information is used to define the effective period of the credit rating demerit record.

The Cancel Agency Referral event type will cancel previous collection agency referrals. No parameters are needed for this type of event.

The Generic Algorithm write-off event type causes the algorithm defined in the Generic Algorithm to be executed. You use this type of algorithm when the standard types of write off events won't do what you need done. If you haven't done so already, you must set up this algorithm in the system. To do this:

• Create a new algorithm (refer to Setting Up Algorithms).
• On this algorithm, reference an Algorithm Type that determines the algorithm that will be called when events of this type are activated.

The Refer to Agency event type will refer the debt associated with the process' SAs to a collection agency. You must supply the Agency Selection Algorithm that is used to determine the collection agency associated with the referral. If you haven't done so already, you must set up this algorithm in the system. To do this:

• Create a new algorithm (refer to Setting Up Algorithms).
• On this algorithm, reference an Algorithm Type that determines the collection agency to which bad debt should be referred.

The Send Letter write-off event type causes a customer contact to be generated that, in turn, generates a letter. Enter the following parameters for this type of event:

• Select the Contact Class used to categorize the customer contact.
• Use Contact Type to define the type of customer contact to create. The type of customer contact controls the type of letter that is generated.

The Create To Do Entry write-off event type causes a To Do entry to be issued. Refer to The Big Picture of To Do Entries for more information about To Do entries (refer to the To Do type TD-WOEVT for the type of To Do entry that's created).

The Write Off using Distrib Code event type causes bad debt to be written off in accordance with the distribution codes associated with the financial transactions that caused the debt in the first place. Use this method if, for example, you want to write-off revenue differently than you write-off liabilities. When this type of event is activated, the system accumulates the distribution codes from GL details associated with recent financial transactions linked to each write-off service agreement. When the system has accumulated enough distribution codes (i.e., where the amount associated with the distribution code equals or exceeds the amount to write off), the debt will be transferred to a new or existing write-off service agreements. The type of service agreements to which the debt is transferred is defined on the distribution codes. Refer to Setting Up Distribution Codes for more information.

The Write Off using SA Type event type causes all debt associated with the process' SAs to be transferred to a write-off service agreement linked to the account. Enter the following Parameters for this type of event:

• CIS Division / SA Type is the type of write-off service agreement to which the debt will be transferred. Note well,
  • The system will reuse an existing service agreement if an active SA of this type is already linked to the account; otherwise the system will create a new service agreement of this type.
  • The adjustment type used to set the offending service agreement's current balance equal to its payoff balance is defined on the write-offable SA Type. Refer to SA Type - Main Information for more information.
  • The adjustment type used to transfer the delinquent debt to the write-off service agreement is defined on the write off SA type. Refer to SA Type - Detail for more information.

Enter a Comment to fully describe the write-off event type.