How Is An Account's Debt Monitored?
Assume the following collection control matrix exists for your organization:
|
SA's Debt Class |
Account's Collection Class: Commercial Customer |
Account's Collection Class: Residential Customer |
|
Regulated |
N/A - there is no regulated, large customer debt |
Highest Priority: If > $5 in arrears by more than 50 days, create the accelerated collection process for residential customers. Lower Priority: If > $25 in arrears by more than 25 days, create the courtesy reminder collection process for residential customers. |
|
Unregulated |
Highest Priority: If > $10 in arrears by more than 50 days, create the accelerated collection process for commercial customers. Lower Priority: If > $1000 in arrears by more than 25 days, create the normal collection process for commercial customers. |
Highest Priority: If > $10 in arrears by more than 25 days, create the normal collection process for residential customers. |
This matrix contains the information used by the Account Debt Monitor.
For more information about the information in this matrix, refer to Different Collection Criteria For Different Customers And Different Debt.
This matrix can be overwhelming when viewed as a whole. So let's consider how to use it for a specific account's debt and things will become clearer.
First, because an account belongs to a unique collection class, we only have to worry about a single column in the matrix when monitoring an account's debt.
Next, we accumulate the total amount of aged debt for each unique debt class associated with the account's service agreements.
Next, we subject the accumulated aged debt to the override aged debt algorithm (plugged in on the debt class). This algorithm can cause aged debt to be reduced. This is an optional algorithm and is only used if you set up pay plans for customers. Refer to How Pay Plans Affect The Account Debt Monitor for more information.
Next, we determine if the debt for the debt class violates the collection criteria in the respective matrix element. If so, we kick off a collection process and link the offending service agreements to it. The logic associated with the determination of whether to kick off a collection process is rather sophisticated. The following flowchart explains the exact details.
Important. If a service agreement is part of an ongoing severance process, it will NOT be considered by the Account Debt Monitor (it's already being severed). If a service agreement is stopped, closed, or reactivated, it also will NOT be considered by the Account Debt Monitor (it's already severed).
Multiple collection processes may be kicked off. It's important to be aware that if an account's service agreements reference multiple debt classes, a collection process will be started for each offending debt class.
One collection process per debt class. A given debt class for an account may only have one ongoing collection process at any point in time.