Configuring the Grace Period for a Delinquency Process Type

Procedure

To configure the grace period for a delinquency process type:

  1. Ensure that the Grace Period Configuration section is expanded when you are defining or editing a delinquency process type.

    The Grace Period Configuration section contains the following fields:

    Field Name Field Description Mandatory (Yes or No)
    Grace Source Period Used to indicate the source from where the grace period is received. The valid values are:

    • Algorithm

    • Delinquency Process Type

    Note:

    By default, the Delinquency Process Type is selected.

    You need to configure the Derive Grace Period based on Business Rules (C1-DERGRBR) algorithm in the delinquency process type, if you select the Algorithm option from the Grace Period Source field.

    		 Yes
    Grace Period (Days) Used to specify the number of days which are used to define the grace period end date for the delinquency process.
    Note: For example, if a delinquency process contains bills with the latest bill due date as 01-Jan-2023, the system considers the latest bill due date as the grace period start date which is 01-Jan-2023. Now, if you have configured the grace period as 30 days, the system determines the grace period end date as 31-Jan-2023 by using the following formula:
    Grace Period End Date = Grace Period Start Date + Grace Period
    		 Yes (Conditional)
    Note: This field is required if you have selected the Delinquency Process Type option from the Grace Source Period list.
    Grace Start Date Basis Used to indicate the option based on which the grace date calculation is performed. The valid values are:

    • Delinquency Process Creation Date

    • Latest Bill Due Date

    • X Days after Latest Bill Due Date

    Note:

    By default, this field is disabled. It is enabled only when you select the Grace Start Date option from the Usage Basis list.

    The grace start date basis is used as the base date for performing the grace period calculation.

    		 Yes (Conditional)
    Note: This field is required if you have selected the Grace Start Date option from the Usage Basis list.
    Add Days To Due Date Used to specify the number of days by which the due date gets extended and is further used for calculating the grace period end date.
    Note:

    This field appears only when you select the X Days after Latest Bill Due Date option from the Grace Start Date Basis list.

    If you do not specify any value, by default it is set to zero (0).

    For example, if the grace period start date is set as 01-Jan-2023 and you have configured the add days to due date as 7 days, the system adds the add days to due date to the grace period start date. Therefore, the new grace period start date is now set as 08-Jan-2023. The system then combines the grace period start date with the grace period to calculate the grace period end date using the following formula:
    Grace Period End Date = Grace Period Start Date + Grace Period
    		 No
  2. Enter the required details in the Grace Period Configuration section.
  3. Click Save.
    The grace period is configured for a delinquency process type.