Payment Arrangement Segmentation
If your organization allows customers to payoff outstanding debt using payment arrangements (e.g., current bill plus $X), you will need a new contract type for every debt class that can have a payment arrangement. If we assume you can have payment arrangements for both regulated and unregulated debt, then you'll need at least two more contract types (you may have more contract types if you need to segregate the payment arrangement receivable amount).
| Division/Contract Type | Service Type | Distrib.Code | Debt Class | Bill Seg Type | Recurring Charge Control Info |
|---|---|---|---|---|---|
| CA/PA-REGU | Other | A/R-ARRG | REGU | RECUR-AS |
Amount to bill is Not Allowed Amount is Required Frequency is Monthly Recurring Amount Label is Arrange Amount |
| CA/PA-UNRE | Other | A/R-ARRG | UNRE | RECUR-AS |
Amount to bill is Not Allowed Amount is Required Frequency is Monthly Recurring Amount Label is Arrange Amount |
Notice the following about the new payment arrangement contract types:
- They have an interesting distribution code. This is because when funds are transferred to these types of contracts, the system must debit a receivable (i.e., payment arrangement receivable).
- They use an interesting bill segment type - RECUR-AS. This bill segment type was set up to create recurring charges that stop when the customer no longer has a payoff balance.
- Each new contract type references the debt class whose debt it will pay off. We are intentionally linking the payment arrangement debt to the same debt class as the regulated debt from which it originates. This way, the C&C process will consider the arrangement debt as the same as regulated debt and therefore perform the regulated collection.
- The recurring charge control information is set up as defined.