Payment Plan Setup

The Payment Plan Setup form stores default values and transaction types that apply to payment plans. You can set an initial charge amount, discount, payment amount, late payment fee, down payment amount, interest rate, number of payments, payment period and a contact plan to run when you start the plan for an account. Special transaction types may be assigned for posting payment plan transactions. The payment plan transaction types must exist in your system.

You can also specify a plan to run on the Payment Date of the last payment in your schedule.

Payment Plan Setup

All options on this form are used as default settings when you create a new plan. Default amounts are automatically loaded into each new payment plan. This reduces typing and minimizes errors. You will be able to change any of these settings on an individual basis when you set up the plan for a particular account.

If the payment plan transaction types do not exist in your system, please set them up. Suggested settings are listed below for each transaction type. These transaction types are used for reporting purposes, and to calculate fees, charges and payments that apply to the debtor's payment plan. You will want to ensure that they work as you expect them to before you post the plan to an account. If you run a contact plan on posting, please ensure that this plan exists in your system and works as you expect it to before you post the plan.

Initial Charge

This transaction type is usually Original Principal 196. It should already exist in your Transaction Type list available when you select System from the top menu bar and then select Financial Settings, Transaction Types.

The Code is in the 100 Transaction Type group since it is an initial payment or charge.

Please refer to Transaction Type for a Sample of Original Principal to see the suggested settings for this Transaction Type.

Initial Discount

This is the transaction type for any credits toward the initial charge. The value of this field affects the service charge calculation.

The Code is in the 100 Transaction Type group since it is an initial payment or charge.

Please refer to Transaction Type for a Sample of Payment Plan Initial Discount to see the suggested settings for this Transaction Type.

Service Charge

This is the Transaction Type for service charges.

The Code is in the 300 Transaction Type group since it is a Fee.

Please refer to Transaction Type for a Sample of Payment Plan Service Charge to see the suggested settings for this Transaction Type.

Rate

This is the service fee rate.

This rate is copied into the payment plan and used to calculate the service fee. This is a monthly rate.

Late Fee

This is the Transaction Type for any Late Fees.

The Code is in the 300 Transaction Type group since it is a Fee.

Please refer to Transaction Type for a Sample of Late Fee to see the suggested settings for this Transaction Type.

Down Payment

This is the Transaction Type for a Down Payment.

The Code is in the 100 Transaction Type group since it is an initial payment or charge.

Please refer to Transaction Type for a Sample of Down Payment to see the suggested settings for this Transaction Type.

Payments

This is the Transaction Type for a Payment.

The Code is in the 100 Transaction Type group since it is an initial payment or charge.

Please refer to Transaction Type for a Sample of Payment Plan Payment to see the suggested settings for this Transaction Type.

Number Of Payments

This is the default number of payments the Debtor makes.

This number can be changed with each payment plan you create and is simply a default value.

Payment Period

Select a time between payments. This is a default value. You can change this on a per payment plan basis.

If you select monthly, and the starting date is the 31st, 30th or 29th, the system will schedule payments on the highest date available for each month. For example a 6 month plan starting on January 31st will have a second payment scheduled for February 28th since there is no 31st of February.

This setting affects the way the service fee is calculated.

Number Of Days

Enter the number of days between payments.

This field is only displayed when the Payment Period is set to Number Of Days.

Contact Plan On Posting

When a plan is posted, run this Contact plan.

This can be used to send letters of agreement and reminder notices and schedule reviews as necessary.

The default plan in the Collect! Demonstration database is PPL, Payment Plan Started. This plan changes the Debtor's Status and writes a Note that a payment plan has started. You may want to send a letter of acknowledgment and perhaps schedule a review. If so, you can add your own additional events to the default PPL plan or change the code here to a different plan that you want Collect! to run whenever you post a payment plan to an account.

If you use coupon books, the plan you run on posting may contain an event to queue the coupon book for your letter batch.

Initial Charge Amount

This is the default amount for the initial charge.

For example, you might offer a course for a fixed price. You could enter that price here and whenever you create a new payment plan this amount is loaded into the payment plan's initial charge field unless the Debtor already has an original principal amount.

Initial Discount Amount

Enter a default discount if used.

Service Amount

An optional default amount for the Payment Plan Service Charge. Enter a default fixed service fee if you don't use the service rate.

Late Fee Amount

Amount charged for late payments.

Late fees are not assessed automatically.

Down Payment Amount

Default amount of a down payment.

Last Payment Plan

Select a contact plan to run on the date of the last payment in your schedule. Collect! will create a Plan Contact with a Due Date that matches the Payment Date of the last Transaction posted in your payment plan schedule.

If you re-schedule your payment plan, Collect! will update the Plan Contact so that it always matches the last Payment Date in your schedule.

You can also trigger this Plan Contact to be created when you manually enter Transactions. Please refer to Help topic, How to Run a Contact Plan on the Last Payment Date for details.

Prompt Before Creating

Switch this ON with a check mark if you want Collect! to prompt before creating the Plan Contact for the Last Payment Plan. This gives you a chance to verify the Plan Contact you are about to schedule, or to say 'No' to creating the Plan Contact.

OK

Selecting this button will save any data you have entered and return you to the previous form.

Cancel

Select this button to ignore any changes you may have made and then return to the previous form.

Help

Select this button for help on the Payment Plan Setup form and links to related topics.