Deposit Segmentation - Installment Billing

If your organization allows customers to pay deposits using an installment plan, you must create an SA type for this.

Note:

No installments. If the customer must pay for the deposit in one lump amount, you'd create an SA type similar to the Connection Charge Segmentation example. Just make sure the adjustment that's levied to charge for the deposit amount doesn't affect payoff balance (when you bill a deposit, the customer doesn't really owe anything because it's not a true receivable from an accountant's perspective).

CIS Division/

SA Type

Service Type

Distrib.

Code

Debt Class

Bill Seg Type

Recurring Charge Control Info

CA/DEP-I

Other

A/P-DEPO

DEP

RECURATB

Amount to bill is Required

Amount is Required

Frequency is Monthly

Recurring Amount Label is Install Amount

Notice the following about the new deposit SA type:

  • It has an interesting distribution code. This is because when a payment is distributed to these types of service agreements, the system must credit a payable account (i.e., deposit payable) rather than a receivable account. Note well, we have assumed a receivable is not incurred when the bill segment for the deposit is created.
  • It uses an interesting bill segment type - RECURATB. This bill segment type was set up to create recurring charges that stop when the system has billed the Total Amount to Bill.
  • The debt class is interesting - DEP (for deposit). This is done so that past due deposit "debt" is treated separately from other types of debt.
  • The recurring charge control information is set up as defined. Note well, the Amount to bill is Required.
Fastpath:

Refer to the Description of Page under SA Type - Billing for the definition of the recurring charge attributes. Refer to Start Option Considerations For SA Types That Use Recurring Charges for how you can use start options to automatically populate a service agreement's recurring charge fields with appropriate values when service is started.

Note:

Bill messages on receipt of deposit in full. The base package includes a special FT Freeze algorithm that can be specified on deposit SA Types. It recognizes when a deposit has been paid in full, and creates a bill messages to inform the customer. Refer to algorithm DEP PIF MSG in Algorithm Types for more information.