Debt Classification Segmentation
Every contract type has a debt class. The debt class is used to categorize a contract's debt for the purpose of credit and collections (C&C) analysis. If a given contract type has different categories of debt from C&C's perspective, you must split the contract type.
Fastpath: For more information about debt class, refer
to Designing Your Collection Procedures.
Note:
Write Off Debt Class vs. Normal Debt Class. An contract
type references both write off debt class and normal debt class. An
contract type's write-off debt class controls the write-off rules
imposed on contracts of a given type. An contract type's normal debt
class controls the collection rules imposed on contracts of a given
type. Refer to Different Collection Criteria For Different Customers And Different
Debt for more information about collection rules. Refer to Different Write-Off Criteria For Different Customers And Different
Debt for more information about write-off rules.