Debt Classification Segmentation

Every contract type has a debt class. The debt class is used to categorize a contract's debt for the purpose of credit and collections (C&C) analysis. If a given contract type has different categories of debt from C&C's perspective, you must split the contract type.

Fastpath: For more information about debt class, refer to Designing Your Collection Procedures.

Note: Write Off Debt Class vs. Normal Debt Class. An contract type references both write off debt class and normal debt class. An contract type's write-off debt class controls the write-off rules imposed on contracts of a given type. An contract type's normal debt class controls the collection rules imposed on contracts of a given type. Refer to Different Collection Criteria For Different Customers And Different Debt for more information about collection rules. Refer to Different Write-Off Criteria For Different Customers And Different Debt for more information about write-off rules.