The Collection Process Monitor Can Cancel A Collection Process

The Collection Process Monitor (CPM) is a background process that reviews a collection process when the debt associated with one of its contracts is reduced. Financial events that can cause contract debt to be reduced are:

  • The cancellation of a bill segment.
  • The creation of a payment segment.
  • The creation of an adjustment that credits a contract.

The review performed by the CPM occurs as follows:

  • Debt class cancel criteria. In general, the sum of all debt associated with the collection process's debt class must be less than a given threshold amount for a collection process to be cancelled. If so, the collection process is cancelled.
  • Please be aware that, if a Promise To Pay exists for the account and debt class, the customer's debt will be temporarily reduced by the amount of the promise to pay's scheduled payments before it is compared to the threshold amount. Please be aware that this temporary reduction will only occur if you have plugged in the appropriate promise to pay debt reduction algorithm on the debt class.
Note: The above logic is not "hard coded". The CPM calls the Collection Process Cancel Criteria Algorithm defined on the debt class that is associated with the collection process. This algorithm will cancel a collection process if the sum of ALL contracts in the debt class have debt less than a given threshold amount. However, because it's an algorithm, you can introduce whatever cancellation criteria you please.
  • Contract cancel criteria. You can optionally introduce a special quirk to the cancellation logic. This quirk is a bit difficult to understand. To understand it, you should recall:
    • All contracts that are in arrears in a given debt class are linked to the collection process.
  • To "remove" contracts from a collection process when they no longer have intolerable debt, you should plug-in a Contract-Oriented Cancel Criteria Algorithm on your collection process templates. The CPM will call this algorithm if you've plugged it in.
Note: When all contracts are "removed" from a collection process, the CPM cancels all pending collection events and cancels the collection process.
CAUTION: Checking if individual contracts should be removed from a collection process is optional (meaning that you don't have to plug one in on the collection process template).