How To Post Outside Agency Fees
This document deals with a posting method for
handling fees from an outside agency.
Requirements
- Setup Transactions and Transaction Types
- Setup Clients, Debtors
- Review Payment Posting
Overview
You may need to apply fees taken by some other agency
(e.g., a credit counseling agency) to the Debtor's account.
These fees can be applied to the Debtor's balance. To apply
such a fee please study the following example.
Scenario
Imagine a debtor makes a $20.00 payment to a credit counseling
agency and the agency takes a $3.00 fee, leaving a $17.00
payment to your agency. The Debtor's balance must still be
credited with the entire $20.00, while you can only charge
Commission on the $17.00. You also want to record this fact in
the Transaction history of the Debtor.
To manage this scenario we will first want to create a Transaction
Type for reporting purposes and then create two transactions
applied to the Debtor's account, one recording the $17.00 payment,
and one for the $3.00 credit to the Debtor's account.
Creating The Transaction Type
Follow these steps the first time only. Once you
have created a Transaction Type it can be used on any new
Debtor transactions. The Transaction Types are used when
printing Debtor and Client Trust Account Reports.
1. Pull down the System menu and choose
Financial Settings, Transaction Types. The list of all
Transaction Types is displayed.
2. Press F3 to create a new Transaction Type.
3. Type 310 for the new Transaction Type Code.
4. Press ENTER to move to the Description field.
Type "Third Party Fees" in the Description field.
5. Press F8 to save the Transaction Type and Close the list.
Posting The Payment
This procedure assumes that you are posting a payment
by check for the current day. The total amount the Debtor has
paid is $20.00, while only $17.00 is actually paid to your
agency and a $3.00 service charge is deducted at source.
Entering The Amount Paid
1. From the Main Menu, pull down the Browse menu.
Choose Active Debtors. The list of all Debtors is
displayed.
2. Start typing the name of the Debtor and the list will
scroll to the nearest match. Press F5 to open the
Debtor form.
3. Select the TRANSACTIONS tab to open a list of
transactions for this Debtor. If no transactions
exist, you will be prompted to create one.
Choose Yes.
4. The Transaction form will be displayed. Some
information for this Debtor will already be entered.
5. Choose 101 for the Type field.
6. Press F2 in the Debtor field and choose a Debtor.
If you assigned the Debtor to an operator, their ID will
automatically be copied into the Operator field of
the Transaction.
7. Tab to the Posted Date and choose a date.
8. Tab to the To Us field and type 17. Press enter.
If you have assigned a collector and a commission rate
for the Debtor then these items will be filled in automatically.
Press ENTER until you reach the last field, and a new
Transaction is automatically created for you. Now you will
record the $3.00 service charge deducted at source. For
this transaction you will not want any commission charged,
nor will you want to send the funds to the client.
Entering The Agency Fees
Next we will enter to fee deducted by the outside
agency. You should be on a new Transaction form.
1. Type 310 in the Transaction Type field and press ENTER.
2. Press ENTER to accept the Debtor name.
If you assigned the Debtor to an operator, their ID
will automatically be copied into the Operator field
of the Transaction form.
3. Move to the Description field and type 'Charge'
or an appropriate description.
4. Move to the Direct field. Type 3 and press ENTER
to record the service charge.
5. Delete the calculated Commission from the
Commission Amount field.
*** You have now completed posting this payment.***
6. Press F8 to exit.
Ensuring The Correct Posting Date
When you post payments in Collect! be sure to attach
the payment to the correct date.
You may post payments for some date in the past.
If you can't find the date you want, press F3 when you
are in the Day list to create a new one, and type the
correct date into the Date field.
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