Credit and Collections and Non-Billed Budgets

Unless the Non-Billed Budget is unmonitored, the account debt monitor (ADM) monitors a Non-Billed Budget SA's current amount just as it does for any other SA. The scheduled payment algorithm creates a trigger to ensure that the account debt monitor reviews the account the next time it runs. The review date on the trigger record is set to the process business date.

A separate debt class is needed for Non-Billed Budget SA types, thus allowing you to define collection class controls, debt criteria and collection process templates specifically for Non-Billed Budgets. The debt criteria should be set up to trigger a collection process when the arrears amount exceeds $0.01 for more than n payment periods plus the number of grace days that you want to allow.

The collection process template can perform any of the events in standard collection processes, such as sending letters to customers and creating severance processes. At a minimum, the collection process template should be set up to start a severance process for all service agreements in the debt class. (Since the debt class is specifically for Non-Billed Budgets, the Non-Billed Budget is the only SA that will be subject to a severance process.)

The Non-Billed Budget severance process template should include the following event types:

• Populate a characteristic on the SA to indicate that the SA is broken. The base package comes supplied with a severance event algorithm type (SVEV-NB) that sets an SA characteristic to indicate that it was "severed".
• Expire Severance Agreement to move the SA to the pending stop state.

When the system subsequently stops the Non-Billed Budget, the system removes the covered SAs from the Non-Billed Budget and synchronizes their current balances with their payoff balances. Since the SAs have current balances again, they are subject to the account debt monitor, which can start subsequent collection processes for any of the SAs that meet the debt criteria for their debt class.

Customers can catch up on their payments and avoid having their Non-Billed Budget broken as long as their current balance doesn't violate the debt criteria for the Non-Billed Budget's collection process.