Creating Payment Arrangements

When you create a payment arrangement, you are actually creating a service agreement. This service agreement is just like other service agreements in that:

It holds debt.
It is periodically billed (thus creating unmatched bill segment financial transactions).
When a payment is received, the payment segment financial transactions are matched to the bill segment financial transactions.

Debt is transferred to a payment arrangement service agreement (PA SA) from the customer's delinquent bills at the inception of the payment arrangement.

When you transfer debt from the overdue bills to a PA SA, transfer adjustments are created to transfer debt from the delinquent SAs to the PA SA. Match events are created to link the "transfer from" adjustments to the original unpaid financial transactions (FT). When all FT's on a bill are linked to balanced match events, the bill is no longer considered overdue and any active overdue process (and its related cut processes) will be cancelled. Refer to How Are Overdue Processes Canceled for more information.

Note:

Use the Payment Arrangement Transaction. Use the Payment Arrangement - Bill Oriented to set up bill-oriented payment arrangements. This transaction creates a PA SA, transfers overdue bills to it, and sets up the installment amount. This transaction is also used if you need to break or cancel the payment arrangement.