Different Write-Off Criteria For Different Customers And Different Debt

Consider the following:

• You probably have different write-off criteria for different customer segments. For example, customers with large bills probably have strict criteria, whereas you're probably more lenient with small customers (or vice versa). You differentiate your customers in respect of the collection process via a collection class code on the customers' accounts. An account's initial collection class is defaulted from its customer class. You may override an account's collection class at will.
• You probably have different write-off criteria for different classes of debt. For example, if a customer has both regulated and unregulated debt, you probably have commission-imposed criteria to be applied to the regulated debt, but you have control over how to write-off unregulated debt. You differentiate your debt in respect of the collection process via a write-off debt class on the customers' service agreements (note the write-off debt class is actually defined on the SA type and every service agreement has a SA type).

Given the above, you should understand that different write-off criteria will exist for every combination of collection class and write-off debt class. If you're confused, then consider the following matrix:

Notice that each cell in the matrix has the same pattern:

• The system first attempts to reduce the SA's current and payoff balances to zero using the following methods (assuming you have set up the write-off control appropriately):
  • Sync the current balance with the payoff balance. If the SA's payoff balance is zero, this will cause the current balance to become zero and therefore close the SA.
  • If there's a debit balance, transfer the debt to any pending start or active SA in the same write-off debt class.
  • If there's a credit balance, transfer the debt to any non-closed / non-cancelled SA in the same write-off debt class
  • If the remaining debit / credit balance is within a user-defined tolerance (this is defined on the respective algorithm on the write-off control), create an adjustment to write-down the small balance.
  • If a credit balance remains, create an A/P adjustment to refund the balance with a check (the adjustment type is defined on the respective algorithm on the write-off control).
• All of the above points will cause the SA to close. If debt remains, the system starts some type of write-off process. The type of process is dependent on the respective criteria. What differentiates one write-off criteria from another is its priority. The higher priority criteria will be compared first. If the customer / debt meets the criteria, the write-off process is initiated; no further comparisons are performed.