Transfer Binder Payment from General Suspense Account to Individual Membership Account
Usually, in a fully insured individual business, the binder payments received before the individual membership enrollment are parked in the general suspense account. Oracle Revenue Management and Billing enables you to transfer the binder payments of an individual membership from the general suspense account to the individual member's account after the individual membership enrollment information is received through an inbound message.
To transfer the binder payment from general suspense account to individual membership account, you need to set the value for the following option type in the C1_CMO feature configuration:
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Suspense Contract Type - Used to indicate the suspense contract type whose suspense contracts’ payments you want to transfer to the individual membership account.
A new batch control named C1-PYTRS is introduced in this release. It fetches the suspense contracts of the contract type which is specified in the Suspense Contract Type option type of the C1_CMO feature configuration. Once all suspense contracts are derived, the batch fetches the unmatched frozen payments which are made against the suspense contracts. The batch then checks whether the characteristic type specified in the Payment Identifier Characteristic Type parameter is defined on the payment. If the specified characteristic type is defined on the payment, the system considers the payment as the binder payment. If the specified characteristic type is not defined on the payment, the system does not consider the payment as the binder payment.
The batch then derives the individual membership for which the binder payment is made. While deriving the individual membership, the batch uses the membership identifier value characteristic defined on the binder payment and the value specified in the Membership Identifier Type parameter. You can specify a comma-separated list of membership identifier types in the Membership Identifier Type parameter. The batch then checks whether an individual membership exists with either of the membership identifier type and value combination in the system. Once the individual membership is derived, the batch fetches the individual member's account using the account identifier type and value characteristics which are defined on the individual membership.
While deriving the account identifier type and value characteristics, the system considers the characteristic types which are specified in the Account Identifier Type Char Type and Account Identifier Value Char Type option types of the C1-ASOBLLNG feature configuration.
If multiple individual memberships are derived with the membership identifier type and value combination, the system will not consider the binder payment for transfer and will accordingly add an appropriate log entry to such binder payments.
Once the individual member's account is derived, the batch transfers the binder payment from the suspense contract to either the unpaid bills or on account contract of the account depending on the following:
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If the match type is specified in the Bill Match Type parameter, the batch will transfer the binder payment from the suspense contract against the unpaid bills of the account. While transferring the binder payment against the unpaid bills of the account, the system will do either of the following:
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If the C1-MD-ACCT manual distribution algorithm is attached to the match type, the system will distribute the binder payment against the unpaid bills of the account in the ascending order of the due date. If there are multiple bills with the same due date, the system will consider the unpaid bill in the ascending order of the unpaid amount. However, if there are multiple bills with the same due date and amount, the system will randomly consider the unpaid bill for payment. If there is any excess credit, the system will apply the excess credit amount on the on account contract of the individual member's account. Note that the on account contract is derived using the match type specified in the On Account Match Type parameter.
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If a manual distribution algorithm is not attached to the match type, the system will distribute the binder payment against the unpaid bills of the account in the ascending order of the due date. If there is any excess credit, the system will apply the excess credit amount on the on account contract of the individual member's account. Note that the on account contract is derived using the match type specified in the On Account Match Type parameter.
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If the match type is not specified in the Bill Match Type parameter, the batch will transfer the binder payment from the suspense contract to the on account contract of the individual member's account. Note that the on account contract is derived using the match type specified in the On Account Match Type parameter.
While transferring the binder payment from the suspense contract to either the unpaid bills or on account contract, the system cancels the old payment on the suspense contract and creates a new payment against the unpaid bills or on account contract of the individual member's account. While canceling the old payment, the system uses the cancel reason specified in the Payment Cancel Reason for Transfer parameter. While creating a new binder payment, the system copies all characteristics from the old payment before changing its status to Frozen.
This batch is a multi-threaded batch. The multi-threading is based on account ID and chunks for multi-threading are created based on numerical distribution of account ID. This batch contains the following parameters:
| Parameter Name | Mandatory (Yes or No) | Description |
|---|---|---|
| Payment Identifier Characteristic Type | Yes | Used to specify the characteristic type which stores the
membership identifier value. The system then considers a payment as
a binder payment if the specified characteristic type is defined on
the payment. Note: You must specify the characteristic type where the
characteristic entity is set to Payment.
|
| Membership Identifier Type | Yes | Used to indicate the membership identifier type using which
you want to derive the individual membership. If you specify multiple
membership identifier types separated by comma, the system will derive
the individual membership using either of the membership identifier
type and value combinations. Note:
You must specify a membership identifier type which is already defined in the system. You can specify maximum twenty comma-separated values for this parameter. |
| Bill Match Type | No | Used to indicate the match type using which you want to transfer
the binder payment from the suspense contract to the unpaid bills
of the individual member's account. Note: You must specify a match
type where the entity type is set to Account.
|
| On Account Match Type | Yes | Used to indicate the match type using which you want to transfer the binder payment from the suspense contract to the on account contract of the individual member's account. |
| Payment Cancel Reason for Transfer | Yes | Used to indicate the payment cancel reason that you want
to use while canceling the binder payment on the suspense contract. Note: You must specify a payment cancel reason which is already defined
in the system.
|
| Thread Pool Name | No | Used to specify the thread pool on which you want to execute the batch. |
Once the binder payment is transferred from the suspense contract to either the unpaid bills or on account contract of the individual membership's account, the payor account details on the tender is updated to the individual membership's account. Let us understand this with the help of an example.
The following table lists the details of a binder payment which is made against the general suspense account:
| Payment Event ID | Account | Payment Amount | Payment Char Type | Payment Char Value | Payment Date | Account Type |
|---|---|---|---|---|---|---|
| PAY_ID1 | SUS ACT 1 | 300 | Payment Reference ID | M001 | 01-Nov-2023 | General Suspense Account |
Now, when you execute the C1-PYTRS batch after the individual membership inbound is received in ORMB, the system derives the individual membership for which binder payment is made and transfers the binder payment from the general suspense account to the individual membership's account. The following table illustrates two payments - one on the general suspense account and another on the individual membership account.
| Payment Event ID | Payment ID | Account | Payment Amount | Payment Char Type | Payment Char Value | Payment Date | Payment Match Entity | Status |
|---|---|---|---|---|---|---|---|---|
| PAY_ID1 | P1 | SUS ACT 1 | 300 | Payment Reference ID | M001 | 01-Nov-2023 | General Suspense Account | CANCELLED |
| PAY_ID1 | P2 | ACT 1 | 300 | Payment Reference ID | M001 | 01-Nov-2023 | Member Account | FROZEN |
Once the payment is created on the individual membership's account, the system updates the payor account on the tender from SUS ACT 1 to ACT 1.