Unbilled Adjustments And Aged Debt

A Frozen adjustment waits in limbo until the customer's next bill is produced. This limbo period could be several weeks if the customer is billed infrequently. When the customer's next bill is completed, all limbo adjustments are linked to the bill. A brief description (as defined on the adjustment type) appears on the printed bill.

It is important to stress the following in respect of these limbo adjustments:

• If the adjustment decreases the amount of debt, the customer's aged debt is affected immediately regardless of whether the adjustment appears on a bill.
• If the adjustment increases the amount of debt, the amount the customer owes from an aged debt perspective may or may not be affected by the adjustment. There is a switch on the financial transaction created for the adjustment called New Charge that controls the arrears behavior. When the FT for this type of adjustment is created, the switch is set to on and the customer's aged debt will not reflect the adjustment amount until the adjustment is swept onto a bill. The moment the adjustment is swept onto the customer's bill, the debt starts aging. A user may turn the switch off to cause the debt to start aging sooner. For this case, the date on which the adjustment starts aging must be defined in the Arrears Date field.
• The amount a customer owes in total is immediately affected by the adjustment regardless of whether the adjustment appears on a bill. This means that amount of aged debt may not be in sync with the total amount owed. This seems odd but is useful from a credit and collections perspective. You see, you probably don't want to start aging an adjustment until the customer has actually seen it.