Dunning

The Dunning microservice provides a way to set up tiered Dunning Plans to assist with collection of accounts receivable. For example, a Dunning Plan may include a friendly payment reminder email one day prior to due date, formal payment request email 15 days after the due date, and a change of billing account status to 'Suspended' 30 days after the due date. Plans are applied at the billing account level, allowing companies to provide configurable Dunning Plans on a customer-by-customer basis if desired.

Dunning operates through a scheduled job evaluation of dunning-enabled billing accounts for delinquent payment. If these billing accounts fall within the threshold of their assigned Dunning Plan, the Gotransverse action framework will initiate an HTTP action on the billing account or an email notification based on the plan configuration. Dunning Plans are configured with escalating tiers of action so that you can ensure that the actions taken after delinquent payment are customized based on the particular client, lateness of the payment, or amount unpaid.

Dunning tiers are assigned priority levels to ensure that the correct action is taken based on the billing account criteria. A Dunning Plan may contain a tier structure similar to the following:

Priority Dunning Tier Days Overdue on Payment Description
0 No Dunning (Default) 1 For Customers with dunning status equal to 'No Dunning' there will be NO dunning actions. Level 0 tiers cannot be edited and should be applied on billing accounts that you do not want to include in dunning.
1 Friendly reminder 10 1st reminder notification sent to the Customer as the oldest open invoice is past the invoice due date
2 Important notice 30 2nd reminder notification sent to the Customer as the oldest open invoice is past the invoice due date
3 Avoid suspension 40 3rd and final reminder notification sent to the Customer as the oldest open invoice is past the invoice due date
4 Suspension 45 Suspension notification has been sent to the Customer
5 Collection agency 60 Notification sent to the Customer that all open invoices will be transferred a Collection Agency
6 Write off 90 Invoices of a Billing account have been written off as payments cannot be collected

Gotransverse’s Payment Plan feature can work in conjunction with existing Dunning capability to help streamline the collections process. When invoice amounts for a billing account move to higher Dunning tiers, causing the billing account and services to be suspended or money owed to be written off, you may lose money and customers. Reaching out to the customer and working together to formulate a Payment Plan instead increases the possibility of collecting money owed and retaining customers. Invoices moved into a Payment Plan are no longer evaluated by Dunning while in the plan.

Dunning Setup Overview

Dunning setup requires the following tasks to be completed in the respective user interfaces:

  1. Enabling the Dunning Integration (Gotransverse 1.0)
  2. Creating Plans and Tiers (Gotransverse 2.0)
  3. Assigning Billing Accounts to Plans (Gotransverse 2.0)
  4. Creating Notification Templates (Gotransverse 1.0)
  5. Integrating the Action Framework (Gotransverse 1.0)
  6. Creating the Scheduled Job (Gotransverse 2.0)

To enable the Dunning Integration, do the following:

  1. In the Gotransverse 1.0 UI, navigate to Admin > Integrations.
  2. Scroll to Dunning Gateway Processors and click Dunning Essentials.
  3. Enter the API URL, Auth Type and Auth Value in the resulting pop-up. For help obtaining these values, please contact your goTransverse implementation team.
  4. Click Finish.

How Do You Create a Dunning Plan?

  1. To create a Dunning Plan in the Gotransverse 2.0 UI, do the following:
  2. From the application launcher menu in Gotransverse, select Customer Billing.

  3. From the Customer Billing action menu, click Create Dunning Plan.
  4. In the Create Plan pop-up that appears, fill out the following fields:
Field Description
*Code This field can be helpful for identifying and migrating the plan later if necessary. This field accepts alphanumeric input and cannot be changed once set.
*Plan Name This field sets the name for identifying and searching for the Dunning Plan.
Description This field allows for further information or notes on the Dunning Plan.
*Minimum Account Balance Due This value sets the minimum overall billing account balance required to trigger a billing account to be evaluated for Dunning. For example, a Minimum Billing Account Balance Due of $10.00 would mean that the Dunning evaluation process would ignore any billing accounts with an overall billing account balance less than $10.00 regardless of the billing account having an overdue invoice.
*Status Sets the status of the dunning plan to either Draft or Active. Once moved into an active state, plans cannot be moved back into draft. They can however still be edited or moved into a Suspended status.
*Dunning Strategy This field determines the method for evaluating billing accounts against the Dunning Plan.
Currently the only option is:
Oldest Open Invoice: Bases the dunning evaluation on the oldest, non-disputed open invoice's 'days past due' and 'invoice amount due'.
*Transitional Tier Strategy

 

This field configures Dunning behavior at a higher or lower level as the default behavior for all accounts under Dunning. This gives you more control over what Dunning tier actions occur or don’t occur when an account jumps several levels higher or lower.

For example, if you move an invoice that is 90 days overdue, with its account on Dunning tier 3, to a Payment Plan, then that Plan cancels 30 days later, the invoice moves back into Dunning as 120 days overdue, and the account moves to tier 6. The tier jumped from 3 to 6, moving it several levels higher.

Choose from the following options to handle which tier actions occur or not for an account in the example above:

  • Direct—The platform skips the Dunning tier actions for tiers 4 and 5 and performs Dunning actions for tier 6 only.
  • Incremental—The platform doesn’t skip the tiers in between and will execute Dunning actions for tiers 4-6.
  • *Indicates required field.

    4. Click Create. The Dunning Plan is now visible on the Dunning page and can be configured with tiers or added to billing accounts.

    How Do You Create Dunning Plan Tiers?

    Tiers allow you to design multiple custom actions based on different criteria within the same plan. For example, you may want to implement increasing levels of severity as the days past due exceed certain thresholds. By implementing tiers, these multiple levels can be applied to various billing accounts within a single Dunning Plan.

    Gotransverse contains a default tier (level 0) on Dunning Plans for billing accounts that are not currently in dunning. This default tier cannot be edited. For more detail on tier structure hierarchies, please see the Priority information in the table below.

    To create a tier, do the following:

    1. In the Action Menu under the Dunning Plan name, click Add Tier.
    2. Enter the desired information in the resulting pop-up window.
    FieldDescription
    *NameThis field sets the name for identifying and searching for the tier.
    DescriptionThis field allows for further information or notes on the tier.
    *Minimum Days Past DueThis value sets the minimum number of days past due to trigger this tier.
    *Minimum Invoice DueThis value sets the minimum amount of delinquent funds due in order to trigger this tier.
    *Priority

    This number sets the order of severity in which tiers are evaluated. Tiers with lower numbers should be implemented first and are considered lower severity (ex: Priority 1 - Friendly Reminder Tier). Tiers with a higher number are considered higher severity (ex: Priority 6 - Suspension Tier). The Dunning process will evaluate each Billing Account against each Dunning Plan Tier starting with the lowest Priority numbered tier (least severity first) and walk its way up the severity chain to the highest priority tier until it finds a match. In the event that a Billing Account matches two tiers that overlap and both apply, the tier with the higher severity will be applied.

    Level 0 tiers cannot be edited and should be applied on billing accounts that you do not want to include in dunning.

    *Indicates required field.

    Once the tiers and plans are configured, navigate to the desired billing accounts in the Gotransverse 2.0 UI and select Edit Account from the Costumer action menu. Under the Other Settings section, check the box for Enable Account Dunning and select the respective Dunning Plan to assign the billing account.

    Note: Dunning tiers are read-only after configuration and cannot be manually assigned. Once enabled, the Dunning evaluation process will assign the Billing Account's Dunning Plan tier based on the billing account's payment status on open invoices.

    How Are Notification Templates Created for Dunning?

    After Dunning Plans and tiers are configured, notification templates are designed to serve as the deliverable once an email notification is triggered. To use dunning, you must set up email templates that will be sent to customers when applying your Dunning Plan. You have to create an email template for each tier in your Dunning Plan, then, configure the Action Framework.

    Notification templates are designed within the Gotransverse UI 1.0. Go to Setup > Notification Management to create and define Dunning notification templates.

    How Does the Action Framework Integrate with Dunning?

    The Action Framework is the mechanism by which Gotransverse can leverage information from the Dunning microservice and deliver the desired action detailed on the respective Plan and tier. Within the Action Framework, you can define an HTTP operation that occurs on transition from one tier to another and Email Operation that defines what email customers receive after reaching a certain tier.

    How Do You Take Actions Against a Delinquent Billing Account?

    With Dunning Cure Actions functionality, you can use the extended Dunning notifications in the action framework to revert or change billing account-level actions taken as a part of the Dunning process. By setting up HTTP and Email operations, you can define what actions take place when transitioning from one Dunning Plan tier to another and what notifications customers receive.

    Use the HTTP Operation to take additional action when transitioning from one Dunning Plan tier to another. For example, when the customer’s billing account is no longer delinquent, you can set up the HTTP operation to change the Dunning actions that may include:

    • Service changes: suspending or changing service levels.
    • Sending the billing account to a third-party collections agency.
    • Sending the billing account status to a credit agency.

    Use Email Operations to inform customers about the additional action taken when transitioning from one Dunning Plan tier to another. Email operations use pre-defined Notification templates that are sent to your customers once triggered by the corresponding action.

    Configure the Action Framework for Dunning by following the HTTP and Email Operations instructions in the UI 1.0 user guide.

    How Do You Create the Scheduled Job?

    The scheduled job will run and check all dunning-enabled billing accounts across the parameters of their assigned Dunning Plan. Creating the scheduled job can be accomplished in the Gotransverse 2.0 UI by doing the following:

    1. From the application launcher menu in Gotransverse, select Scheduler.
    2. Click Setup. From this screen, click the action menu for Setup and click Create System Job.
    3. Complete the fields in the resulting pop-up, ensuring that the status is Active and the Type is Dunning Processor. You will be prompted to select the Account Category for which you'd like the processor to run as well.
    4. Note: The Run Interval is aligned to your server time (e.g., runs at midnight will occur at midnight server time rather than local time, if there is a discrepancy). For users unaware of their Gotransverse server time, please consult the Gotransverse Support team.