The Collection Process Monitor Can Cancel A Collection Process

The Collection Process Monitor (CPM or C1-CPM)) is a background process that reviews a collection process when the debt associated with one of its service agreements 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.

The review performed by the CPM occurs as follows:

  • Debt class cancel criteria. In general, the sum of all debt associated with the collection process's debt class must be less than a given threshold amount for a collection process to be cancelled. If so, the collection process is cancelled.
  • Please be aware that, if a Pay Plan exists for the account and debt class, the customer's debt will be temporarily reduced by the amount of the pay plan's scheduled payments before it is compared to the threshold amount. Please be aware that this temporary reduction will only occur if you have plugged in the appropriate pay plan debt reduction algorithm on the debt class.
Note:

The above logic is not "hard coded". The CPM calls the Collection Process Cancel Criteria Algorithm defined on the debt class that is associated with the collection process. This algorithm will cancel a collection process if the sum of ALL service agreements in the debt class have debt less than a given threshold amount. However, because it's an algorithm, you can introduce whatever cancellation criteria you please.

  • 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:
    • All service agreements that are in arrears in a given debt class are linked to the collection process.
    • The collection event called Start Severance creates a severance process for every service agreement that is in arrears on the collection process (the alternative is to Nominate A Single Service Agreement To Sever).
    • If you use the Start Severance collection event, you would want to remove a service agreement from a collection process when it no longer has intolerable debt (regardless of the state of the debt class's entire debt). You'd want to do this because, if you don't, the system would start a severance process for the paid up service agreement and if it's paid up, you wouldn't want a severance process created for it.
  • To "remove" service agreements from a collection process when they no longer have intolerable debt, you should plug-in a Service Agreement-Oriented Cancel Criteria Algorithm on your collection process templates. The CPM will call this algorithm if you've plugged it in.
Note:

When all service agreements are "removed" from a collection process, the CPM cancels all pending collection events and cancels the collection process.

Warning:

Checking if individual service agreements should be removed from a collection process is optional (meaning that you don't have to plug one in on the collection process template).