Debt Class Recommendations

A service agreement's debt class is an important element in determining how a customer's debt is collected. In general, we recommend the following:

  • If the service provider has a billing relationship of It's Us, we recommend the sub SAs belong to the same debt class as the "master". Why? Because both SAs' overdue debt should probably be grouped together under a single collection process.
  • If you buy the receivable from the service provider (i.e., the service provider has a payment relationship of Pay at Billing Time ), we recommend the sub SAs belong to the same debt class as the "master". Why? Because both SAs' overdue debt should probably be grouped together under a single collection process.
  • If you don't buy the receivable from the service provider (i.e., the service provider has a payment relationship of Pay at Pay Time ), you may want to use a different debt class on the sub SA. Why? Because you may collect the service provider's debt differently.
Note:

Bottom line. If both the "master" and the sub SAs fall into arrears, you will have 1 or 2 collection processes, it all depends on the debt class assigned to each SA type.

Fastpath:

Refer to Automating Your C&C Activities for information describing how debt class plays a part in this processing.