The Lifecycle Of A Promise To Pay

The following diagram shows the possible lifecycle of a promise to pay:

The following points explain this lifecycle:

• Promise to pay is initially created in the active state. Active promise to pay is monitored for compliance by The Promise To Pay Monitor.
• A promise to pay may be cancelled as follows:
  • A user can cancel a promise to pay at will.
  • When a contract is stopped AND there are no other active contracts in the same debt class, all active promise to pay associated with the account and debt class will be cancelled.
  • The activation of a collection event that calls the "cancel promise to pay" algorithm will cancel all active promise to pay associated with the collection process's debt class. You may want to use such a collection event if your organization cancels active promise to pay when new debt causes a collection process to kick-off. Note, the base package algorithm that performs this function will not cancel the promise to pay if it's associated with a 3 ^rd party payor.
• The Promise To Pay Monitor causes active promise to pay to become broken if sufficient payments have not been made to satisfy the promise to pay's scheduled payments.
• The Promise To Pay Monitor causes active promise to pay to become kept when it detects that sufficient payments have been made to satisfy the promise to pay's scheduled payments.