Designing Overdue Monitoring Rules

At this point, we have the rows and columns defined in our matrix. Now it's time to work on the individual cells.

Note:

Single currency. We've assumed that your implementation works in a single currency. If this is not true, you will need to add a 3rd dimension that will have a value for each currency code.

Each cell will contain the rules that the Overdue Monitor uses to determine if an account has overdue debt. These rules will eventually be configured using one or more algorithms on Collection Class Overdue Rules.

Account's Division

Account's Collection Class:

Residential

Account's Collection Class:

Commercial/Industrial

North

South

Note:

If the Overdue Monitor encounters an account whose collection class and division does not have overdue rules set up, it will issue an error.

Determining the rules in each cell can be straightforward or complicated; it depends on how your organization works. Our case study assumes the following:

  • For residential debt (regardless of division) we have the following rules:
    • Highest priority. If a bill exists with unpaid FT's > $0 that is older than 50 days, create the "accelerated overdue process" for residential customers. We'll talk more about this process later.
    • Medium priority. If the account's has a broken payment arrangement within the last 60 days with an unpaid bill > $0 that is older than 20 days, create the "broken payment arrangement overdue process".
    • Lower priority. If a bill exists with unpaid FT's > $25 that is older than 25 days, create the "courtesy reminder overdue process" for residential customers. We'll talk more about this overdue process later.
  • For commercial-industrial debt (regardless of division) we have the following rules:
    • Highest priority. If a bill exists with unpaid FT's > $0 that is older than 45 days, create the "commercial 45 days late overdue process". We'll talk more about this process later.
    • Medium priority. If the account's credit rating is < 550 and has an unpaid bill > $0 that is older than 20 days, create the "risky commercial customer overdue process".
    • Lower priority. If a bill exists with unpaid FT's > $100 that is older than 30 days, create the "commercial 30 days late overdue process". We'll talk more about this overdue process later.

Given the above, our matrix will look as follows:

Account's Division

Account's Collection Class:

Residential

Account's Collection Class:

Commercial/Industrial

North

Highest Priority: If a bill exists with unpaid FT's > $0 that is older than 50 days, create the accelerated overdue process for residential customers.

Medium Priority: If the account has a broken payment arrangement within the last 60 days with an unpaid bill > $0 that is older than 20 days, create the broken payment arrangement overdue process.

Lowest Priority: If a bill exists with unpaid FT's > $25 that is older than 25 days, create the courtesy reminder overdue process for residential customers.

Highest Priority: If a bill exists with unpaid FT's > $0 that is older than 45 days, create the commercial 45 days late overdue process.

Medium priority. If the account's credit rating is < 550 and has an unpaid bill > $0 that is older than 20 days, create the risky commercial customer overdue process.

Lowest Priority: If a bill exists with unpaid FT's > $100 that is older than 30 days, create the commercial 30 days late overdue process.

South

Same as above

Same as above
Note:

The rules are limited by your imagination (and business requirements). While the base-package Overdue Monitor Rule algorithm (C1-CB-CR-RAT) supports the above scenarios, we'd like to stress these are just examples. Your implementation can operate using very different rules by either configuring the base-package algorithm (it has many parameters that you can use to tailor your rules) OR by introducing a new algorithm. Refer to Highlights Of The Sample Overdue Monitor Rule Algorithm for the options delivered with the base-package.