Delinquency Event Trigger Date Calculation Details

While creating a delinquency process type, you need to specify the following details:

  • Whether you want to delay a delinquency event for a specific period that can be specified either in days or months.

  • Whether the trigger date of a delinquency event should fall on a business day

  • The method in which you want to calculate the trigger date for the delinquency events. The system supports the following methods:

    • Latest Bill Due Date with Grace Period – Used when you want to derive trigger date using the latest bill due date and grace period. The system considers the latest bill due date as the grace start date. It then derives the grace end date using the grace start date and grace period (in days). Once the grace start and end dates are derived, the system calculates the trigger date based on the trigger period and wait period configuration of the delinquency event type as shown below:

      Trigger Period Wait Period Wait Days Trigger Date is set to…
      After Grace End Date Wait Days 10 Grace End Date + 10 days
      Before Grace End Date Wait Days 5 Grace End Date - 5 days
      Note:

      The system supports only wait days when the trigger date calculation mode is set to Latest Bill Due Date with Grace Period.

      The system derives the wait days from the delinquency process type or using an algorithm attached to the Wait Days Derivation system event depending on the wait period source which is specified in the delinquency process type.

      The system derives the grace period from the delinquency process type or using an algorithm attached to the Grace Period Derivation system event depending on the grace period source which is specified in the delinquency process type.

    • Paid Through Date – Used when you want to derive trigger date using the paid through date of the account and the wait period. The system calculates the trigger date based on the wait period configuration of the delinquency event type as shown below:

      Wait Period Wait Days Wait Months Day of Month Trigger Month is set to… Trigger Date is set to…
      Monthly Cyclic - 1 5 Paid Through Date + 1 Month 5th of Trigger Month
      Wait Days 5 - - - Paid Through Date + 5 days

      If the wait period is set to Monthly Cyclic, you need to specify the wait months and the day of the month for each delinquency event type in the delinquency process type. However, if the wait period is set to Wait Days, you need to specify the wait days for each delinquency event type in the delinquency process type.

      Note: The system derives the wait days or wait month and the day of the month from the delinquency process type or using an algorithm attached to the Wait Days Derivation system event depending on the wait period source which is specified in the delinquency process type.

      If the calculated trigger date of an event is past dated, the system enables you to move the trigger date of the event to the next month. If the new trigger date is also past dated, the system keeps moving the trigger date by one month until it is a future date. You can avail this functionality for the delinquency events by selecting the Move Past Dated Event To Future option corresponding to the respective delinquency event type in the delinquency process type. Note that if the trigger date of an event is moved to a future date, the trigger date of the subsequent events in the delinquency process is also moved accordingly.

      This is because the system is designed to trigger only one event at a time in a month. While calculating the new trigger date, the system ensures that the delinquency events are triggered in the given sequence.

      Note: You can enable the Move Past Dated Event To Future option only when the wait period is set to Monthly Cyclic.

    • Usage Basis – Used when you want to derive trigger date using either of the following dates:

      • Delinquency Process Creation Date – Used when you want to derive trigger date using the delinquency process creation date and the wait period. The system calculates the trigger date based on the wait period configuration of the delinquency event type as shown below:

        Wait Period Wait Days Wait Months Day of Month Trigger Month is set to Trigger Date is set to…
        Monthly Cyclic - 1 5 Delinquency Process Creation Date + 1 Month 5th of Trigger Month
        Wait Days 15 - - - Delinquency Process Creation Date + 15 days

        If the wait period is set to Monthly Cyclic, you need to specify the wait months and the day of the month for each delinquency event type in the delinquency process type. However, if the wait period is set to Wait Days, you need to specify the wait days for each delinquency event type in the delinquency process type.

        Note: The system derives the wait days or wait month and the day of the month from the delinquency process type or using an algorithm attached to the Wait Days Derivation system event depending on the wait period source which is specified in the delinquency process type.

        If the calculated trigger date of an event is past dated, the system enables you to move the trigger date of the event to the next month. If the new trigger date is also past dated, the system keeps moving the trigger date by one month until it is a future date. You can avail this functionality for the delinquency events by selecting the Move Past Dated Event To Future option corresponding to the respective delinquency event type in the delinquency process type. Note that if the trigger date of an event is moved to a future date, the trigger date of the subsequent events in the delinquency process is also moved accordingly. This is because the system is designed to trigger only one event at a time in a month. While calculating the new trigger date, the system ensures that the delinquency events are triggered in the given sequence.

        Note: You can enable the Move Past Dated Event To Future option only when the wait period is set to Monthly Cyclic.

      • Grace Start Date - Used when you want to derive trigger date using the grace start date and the wait period. You can set the grace start date to either of the following - Delinquency Process Creation Date, Latest Bill Due Date, or X Days after Latest Bill Due Date. The system calculates the trigger date based on the wait period configuration of the delinquency event type.

        The following table illustrates how the trigger date is calculated using the respective grace start date and wait period combination:
        Grace Start Date Basis Wait Period Wait Days Wait Months Day of Month Add Days to Due Date Trigger Month is set to… Trigger Date is set to…
        Delinquency Process Creation Date Monthly Cyclic - 1 5 - Grace Start Date (i.e. Delinquency Process Creation Date) + 1 Month 5th of Trigger Month
        Delinquency Process Creation Date Wait Days 15 - - - - Grace Start Date (i.e. Delinquency Process Creation Date) + 15 days
        Latest Bill Due Date Monthly Cyclic - 2 7 - Grace Start Date (i.e. Latest Bill Due Date) + 2 Month 7th of Trigger Month
        Latest Bill Due Date Wait Days 20 - - - - Grace Start Date (i.e. Latest Bill Due Date) + 20 days
        X Days after Latest Bill Due Date Monthly Cyclic - 1 10 10 Grace Start Date (i.e. Latest Bill Due Date + 10 days) + 1 Month 10th of Trigger Month
        X Days after Latest Bill Due Date Wait Days 20 - - 10 - Grace Start Date (i.e. Latest Bill Due Date + 10 days) + 20 days

        If the wait period is set to Monthly Cyclic, you need to specify the wait months and the day of the month for each delinquency event type in the delinquency process type. However, if the wait period is set to Wait Days, you need to specify the wait days for each delinquency event type in the delinquency process type.

        Note: The system derives the wait days or wait month and the day of the month from the delinquency process type or using an algorithm attached to the Wait Days Derivation system event depending on the wait period source which is specified in the delinquency process type.

        If the calculated trigger date of an event is past dated, the system enables you to move the trigger date of the event to the next month. If the new trigger date is also past dated, the system keeps moving the trigger date by one month until it is a future date. You can avail this functionality for the delinquency events by selecting the Move Past Dated Event To Future option corresponding to the respective delinquency event type in the delinquency process type.

        Note that if the trigger date of an event is moved to a future date, the trigger date of the subsequent events in the delinquency process is also moved accordingly. This is because the system is designed to trigger only one event at a time in a month.

        While calculating the new trigger date, the system ensures that the delinquency events are triggered in the given sequence.

        Note: You can enable the Move Past Dated Event To Future option only when the wait period is set to Monthly Cyclic.

      • Latest Bill Due Date – Used when you want to derive trigger date using the latest bill due date and the wait period. The system calculates the trigger date based on the wait period configuration of the delinquency event type.

        The following table illustrates how the trigger date is calculated using the latest bill due date and wait period combination:
        Wait Period Wait Days Wait Months Day of Month Trigger Month is set to… Trigger Date is set to…
        Monthly Cyclic - 2 15 Latest Bill Due Date + 2 Month 15th of Trigger Month
        Wait Days 25 - - - Latest Bill Due Date + 25 days

        If the wait period is set to Monthly Cyclic, you need to specify the wait months and the day of the month for each delinquency event type in the delinquency process type. However, if the wait period is set to Wait Days, you need to specify the wait days for each delinquency event type in the delinquency process type.

        Note: The system derives the wait days or wait month and the day of the month from the delinquency process type or using an algorithm attached to the Wait Days Derivation system event depending on the wait period source which is specified in the delinquency process type.

        If the calculated trigger date of an event is past dated, the system enables you to move the trigger date of the event to the next month. If the new trigger date is also past dated, the system keeps moving the trigger date by one month until it is a future date. You can avail this functionality for the delinquency events by selecting the Move Past Dated Event To Future option corresponding to the respective delinquency event type in the delinquency process type. Note that if the trigger date of an event is moved to a future date, the trigger date of the subsequent events in the delinquency process is also moved accordingly. This is because the system is designed to trigger only one event at a time in a month. While calculating the new trigger date, the system ensures that the delinquency events are triggered in the given sequence.

        Note: You can enable the Move Past Dated Event To Future option only when the wait period is set to Monthly Cyclic.