Deposit Segmentation - Installment Billing
If your organization allows customers to pay deposits using an installment plan, you must create an contract type for this.
Note:
No installments. If the customer must pay for the
deposit in one lump amount, you'd create an contract type. 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).
Division/Contract 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 contract type:
- It has an interesting distribution code. This is because when a payment is distributed to these types of contracts, 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 Contract Type
- Billing
for the definition of the recurring charge
attributes.
Note:
Bill messages on receipt of deposit in full. The
base package includes a special FT Freeze algorithm that can be specified
on deposit contract 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.