Settling Unpaid Dues Against Advance Deposit through a Delinquency Process

Oracle Revenue Management and Billing enables you to settle the unpaid bill amount of a parent customer using the advance deposit available at the parent customer or policy level through a delinquency process. For example, an advance deposit of $1000 is received from the parent customer through multiple payments as shown below:

An advance deposit delinquency process is created for the parent customer which includes two bills - B1 and B2 with the bill segments as shown below:

When the apply advance deposit delinquency event is triggered, the system will create four debit adjustments and one credit adjustment as shown in the below table. Note that the system will create the debit adjustments against the payment segments on the advance deposit contract using the debit adjustment type given in the C1-APPADVDEP algorithm. While creating the debit adjustments, the system will consider the payments in the ascending order of the payment date. In addition, the system will create one credit adjustment using the credit adjustment type given in the C1-APPADVDEP algorithm. This credit adjustment would be matched later in the delinquency process.

The system will then create an offset request using the offset request type given in the C1-APPADVDEP algorithm. In the offset request, the system will include the credit adjustment (-$700) and two bills - B1 and B2 for which the delinquency process is created. The system will then automatically process the offset request and create the offset request adjustments as shown in the below table. Note that the advance deposit is applied in the ascending order of the bill date. If two or more bills have the same bill date, the system applies the advance deposit in the ascending order of the unpaid amount (i.e. lowest unpaid amount is paid first).

Once the offset request adjustments are created, the system creates a customer contact depending on whether the advance deposit is fully or partially utilized to pay the delinquent bills. The customer contact is created for the parent customer or for the main customer of the account depending on whether the delinquency process is created at the person or account level. In addition, the system stamps the delinquency process ID as a characteristic on the customer contact and on the advance deposit payments (used for offsetting; in this case P1, P2, P3, and P4). The system considers the characteristic type given in the C1-APPADVDEP algorithm. For more information about the algorithm, refer to Delinquency Event Type section.

The status of the delinquency process will remain as Delinquency In Progress. On executing the C1-DPMON batch, the system checks whether the delinquency process meets the cancel criteria. If so, the system will change the status of the delinquency process to Canceled.

For more information about the advance deposit delinquency process, see Advance Deposit Delinquency Process.