The Freezing Of Certain Financial Transactions Can Cancel A Severance Process
The system will only cancel a severance process if its severance process template indicates that Auto Cancel is allowed. Typically, this switch is set on all severance process templates except for the odd ones that are used to reconnect service.
The system reviews a severance process real-time whenever its service agreement's debt is reduced. Financial events that can cause service agreement debt to be reduced are:
- The cancellation of a bill segment.
- The creation of a payment segment.
- The creation of an adjustment that credits a service agreement.
Real time cancellation. Unlike collection processes, the system cancels severance processes real time (i.e., there is no background process that monitors severance processes). Why are severance processes canceled real time? Because a severance process may have events that create field activities to sever service. These events need to be canceled the moment the FT is frozen, we can't wait until a background process runs. This means that if a customer pays in person for a service agreement that is pending severance, the system will cancel the process and its field activities (if any) the moment the payment is entered.
The review takes place as follows:
- Debt class cancel criteria. In general, the sum of all debt associated with the severance process's debt class must be less than or equal to a given threshold amount for a severance process to be cancelled. If so, the severance process is cancelled.
- Please be aware that, if a Pay Plan exists for the account and debt class, the actual debt will be temporarily reduced by the amount of the pay plan's scheduled payments before it is compared to the threshold amount. Note: this temporary reduction will only occur if you have plugged in the appropriate pay plan debt reduction algorithm on the debt class.
The above logic is not "hard coded". The system calls the Severance Process Cancel Criteria Algorithm defined on the debt class that is associated with the severance process. This algorithm cancels a severance process if the sum of ALL service agreements in the debt class have debt less than or equal to a given threshold amount. However, because it's an algorithm, you can introduce whatever cancellation criteria you please.
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Service agreement cancel criteria. You can optionally
introduce a special quirk to the cancellation logic. This quirk is
a bit difficult to understand. To understand it, you should recall:
- The collection event called Start Severance creates a severance process for every service agreement that is in arrears. Note: you would only use this type of collection event if you do not Nominate A Single Service Agreement To Sever.
- If you use the Start Severance collection event, then you would want to cancel a severance process when its service agreement no longer has intolerable debt (regardless of the state of the debt class's entire debt).
- To cancel a severance process when its related service agreement no longer has intolerable debt, you should plug-in a Cancel Criteria Algorithm on your severance process templates. The system will call this algorithm if you've plugged it in.
Manual Creation. A user can create a severance process for an account that does not qualify to be on severance according to the cancel criteria algorithm. For example, perhaps your cancel criteria algorithm cancels a severance process when the account's debt falls below a threshold amount. A user can create a severance process for an account whose debt is already below this threshold. Because cancellation is real time, there is no action that will cause this severance process to be canceled. When a manual severance process is created, the system executes the appropriate cancellation criteria algorithm. If the algorithm indicates that the system would have canceled this severance process, a warning is issued.