How to Distribute Overpayment on the Next Bill Completion

If the overpayment is made by an account, the excess credit is transferred to account's excess credit contract. The system allows you to distribute credit from the account's excess credit contract against the next bill during the post bill completion. To enable this functionality, you need to create an algorithm using the CR-DSTRBTN algorithm type and attach it to the Post Bill Completion algorithm spot of the excess credit contract's contract type. This algorithm will create debit and credit adjustments. A debit adjustment is created against the excess credit contract. One or more credit adjustments are created against the bill.

While creating an algorithm using the CR-DSTRBTN algorithm type, you need to specify the following parameters:

  • Debit Adjustment Type - Used to specify the adjustment type using which you want to create debit adjustment against the excess credit contract.

  • Credit Adjustment Type - Used to specify the adjustment type using which you want to create credit adjustments against the bill.

  • Match Type - Used to specify the match type whose payment distribution algorithm you want to use for distributing credit from the excess credit contract against the bill. Note that the Entity flag of the match type must be set to Bill.

  • Adjustment Characteristic Type - Used to specify the characteristic type. You must specify a characteristic type where the type of char value is set to Foreign Key Value and characteristic entity is set to Adjustment. While defining the credit adjustment type, this characteristic type must be added in the Adjustment Characteristics tab. It indicates that this characteristic must be defined for adjustments which are created using the credit adjustment type. It is used to link debit adjustment (created against the excess credit contract) with one or more credit adjustments (created against the bill).

Note: If a bill has a credit line item, a debit adjustment is created to offset the credit line item before distributing the excess credit against the bill. This debit adjustment is created using the adjustment type specified in the Credit Adjustment Type parameter. This debit adjustment is also linked to the debit adjustment which is created against the excess credit contract.

All parameters in this algorithm type are mandatory.