Setting Up Debt Classes

Every SA type has a debt class. This class is one of several fields that control the collection criteria applied to the service agreement's debt. Open Admin > Credit & Collection > Debt Class > Add to define your debt classes.

Fastpath:

For more information about debt classes, see Designing Your Debt Classes.

Description of Page

Enter a unique Debt Class and Description for the debt class.

Turn on Eligible for Collection if service agreements belonging to this debt class have their debt monitored by the collection process. This should only be turned off if this debt cannot be collected, e.g., write-off debt.

The grid that follows contains Algorithms that control important functions in the system. You must define the following for each algorithm:

Specify the System Event with which the algorithm is associated (see the table that follows for a description of all possible events).
Specify the Sequence and Algorithm for each system event. You can set the Sequence to an arbitrary number as only one algorithm for each system event is allowed in this case.

Warning:

These algorithms are typically significant system processes. The absence of an algorithm may prevent the system from operating correctly.

You can define algorithms for the following System Events:


System Event	Optional / Required	Description
Collection Process Cancellation	Required if debt class is eligible for collection	This algorithm determines if a collection process can be canceled, and if so, it cancels it. Refer to How Are Collection Processes Cancelled for more information.
Severance Process Cancellation	Required if debt class is eligible for collection	This algorithm determines if a severance process can be canceled, and if so, it cancels it. Refer to How Are Severance Processes Cancelled for more information.
Override Arrears Due to Pay Plan	Required if you use Pay Plans	This algorithm is called to temporarily override a customer's arrears using a pay plan's scheduled payments when the system looks at an account's debt from a credit & collections perspective (i.e., the ADM calls this algorithm before it subjects a customer's debt to the collection criteria and when a pay plan is created). It does not actually change any data, but overlays the current arrears with the pay plan scheduled payments. This algorithm is also called by the above algorithms when a pay plan is created in order to evaluate if the scheduled payments actually cover the arrears (if so, the collection / severance processes are cancelled). It is also called periodically by the ADM in order to establish if the current state of the pay plan still covers the arrears. Refer to How Pay Plans Affect The Account Debt Monitor.