Attempt To Close The Contract Before Creating A Write Off Process
Before the write-off monitor creates a write-off process for a stopped and reactivated contract, it attempts to reduce the contract's debt to zero using all of the following methods:
- If the account has active contracts, it will transfer the finaled debt to a pending start or active contract.
- If the debt or credit amount on the contract is small, the system will generate an adjustment to 'write it down' (or up in the case of a small credit).
- If the contract has a large credit amount, the system will generate an A/P adjustment (resulting in a check being sent to the customer).
Note:
Plug-in algorithms do the work. Algorithms that
are plugged-in on the write-off control responsible for managing the contract's
debt actually perform the above effort. You can customize these algorithms
to behave exactly how your collections staff desires.
If the algorithms responsible for the above effort are successful in reducing the contract's debt to zero, then the contract closes and will not be subject to write-off processing. If the above algorithms don't result in the contract's debt being reduced to zero, a write-off process will be started (as describe below).