Adjust Underpayments at Bill Level through Write Off

Until now, you were able to write off at the account level where the system automatically created underpayment or short payment adjustments when the outstanding balance of the account was within the threshold limit. This helped to handle the underpayment or short payment scenarios at the account level. Now, in addition, the similar feature is offered at the bill level. Now, you can write off at the bill level where the system automatically creates underpayment or short payment adjustments when the unpaid balance of the bill is within the threshold limit. Note that the short payment adjustments to write off the unpaid bill amount can be created against the payment or payment segment. There can be a rare scenario where a bill segment does not have any pay segment but is still eligible for write off. In such cases, the system will directly create short payment adjustments to write off the unpaid bill amount against the payment.

The C1-PDOV-BSDT algorithm type is enhanced to create underpayment or short payment adjustments when the unpaid balance of the bill is within the threshold limit. If you want to create underpayment or short payment adjustments at the bill level, you need to do the following:

• Distribute payments using a match type where the C1-PDOV-BSDT algorithm is attached to the Pay Dist Override Algorithm spot.

• Set the value for all the newly introduced parameters in the C1-PDOV-BSDT algorithm:

  • Underpayment Tolerance Type - F (Fixed) or P (Percentage) - Used to determine whether the specified tolerance is a fixed amount or a percentage value. The valid values are:

    • F

    • P

  • Underpayment Tolerance Fixed Amount/Percentage - Used to specify the unpaid flat amount or unpaid percentage value (i.e. unpaid amount with respect to original amount). The system then automatically creates underpayment or short payment adjustments when the unpaid balance of the bill is within the threshold limit.

  • Underpayment Adjustment Type - Used to specify the adjustment type using which you want to create the underpayment or short payment adjustments to write off the unpaid amount of a bill.

  All these parameters are optional. If you specify a value for any of the above three parameters, you need to specify the value for all the above three parameters. If you do not set the above three parameters in the C1-PDOV-BSDT algorithm, the system will not create underpayment or short payment adjustments at the bill level.

If you set the above two pre-requisites, the system will create the underpayment or short payment adjustments to write off the unpaid amount of a bill not only from the user interface but also through the C1-PaymentsService or C1-PaymentService inbound web service.

Note that while calculating the underpayment threshold amount, the system derives the unpaid debit amount after offsetting the debit amount with the credit amount on the bill. The system then determines the underpayment threshold amount using the unpaid debit amount and underpayment tolerance amount or percentage. The way system derives the underpayment threshold amount differs depending on two factors - whether the underpayment tolerance is flat or percentage value and whether the underpayment tolerance flat amount is greater than, equal to, or less than the unpaid debit amount. If the underpayment tolerance flat amount is greater than or equal to the unpaid debit amount, the system sets the underpayment threshold amount to the unpaid debit amount. However, if the underpayment tolerance flat amount is less than the unpaid debit amount, the system sets the underpayment threshold amount to unpaid debit amount minus underpayment tolerance flat amount. If the payment amount is greater than or equal to the underpayment threshold amount and if the payment amount is less than the unpaid debit amount, the system will create underpayment or short payment adjustment at the bill level.

Let us understand this with the help of the following scenarios: