Setting Up Collection Classes

Every account has a collection class. This class is one of several fields that control the collection method applied to the account's debt. Open Admin Menu, Collection Class to define your collection classes.

Description of Page

Enter a unique Collection Class code and Description for each collection class.

Enter the collection method. It helps the system to determine how to monitor the unpaid debt of a person or an account that belongs to the collection class. The valid values are:

• Collection, Severance & Write Off - Used when you practice balance-forward accounting for the accounts that belong to the collection class. Note that this method is described in detail throughout this chapter.

• Overdue - Used when you practice open-item accounting for the accounts that belong to the collection class. This method is described in detail under the Defining Overdue Processing Options section.

• Not Eligible For Collection - Used when you want to ignore a person or an account that belongs to the collection class while monitoring the delinquency. Note that such persons and accounts are not reviewed for overdue debt.

• Self-Control Delinquency – Used when you want to create a distinct delinquency process for a person or an account that belongs to the collection class. You can use this collection method for fully insured group, fully insured individual, and direct billed group membership lines of business.

• Parental Delinquency – Used when you want to evaluate the debt of a person or an account that belongs to the collection class while monitoring the parent person’s delinquency. You can use this collection method only for the fully insured group business.