Payment Plans

A Payment Plan is comprised of payment installment schedules and allows you to create and manage these schedules through a billing account as part of the collections process. Delinquent invoices are added to a customer-specified Payment Plan along with due dates and amounts to help ensure timely payment collection, or, a promise to pay. The customer can receive notification when a scheduled payment is about to be due or is overdue, or when a Payment Plan under their billing account is created in draft, activated, completed, or cancelled. The Gotransverse billing platform allows you to create, edit, activate, delete, or cancel a Payment Plan.

As displayed in the image above, Payment Plan installment information on the Schedule detail tab includes:

Column Name Description
Date The date a payment installment is due.
Amount The total amount due on the payment installment.
Delinquent Payment Action The action that occurs when the payment installment Amount is not paid by the due Date.

Options:
  • Cancel Plan—Cancels the Payment Plan.
  • Resume Plan—Keeps the Payment Plan active.
Remaining Amount The remaining amount due on a payment installment after payments/credits are deducted.
Status The status of the payment installment.

Options:
  • Scheduled—Displays when the payment installment is scheduled to be paid; the full Amount must be paid by the scheduled due Date.
  • Paid—Displays when the Amount is paid by the due Date.
  • Delinquent—Displays when the Amount is not paid by the due Date. When the Status is Delinquent, the Payment Plan either resumes or cancels based on the Delinquent Payment Action configuration.

Note: On the day a Payment Plan is activated, its payment installments are automatically set to a Scheduled status.

The 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 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 stop being evaluated by Dunning.

What follows is an example of a Payment Plan workflow that works in conjunction with Dunning.

In Dunning are Invoices A, B, and C below. Invoices A and B are good candidates to put on a Payment Plan because of the age of each. If the oldest invoice, Invoice A, continues to be evaluated by Dunning, the customer’s services could be suspended soon, or their billing account could move to collections depending on the Dunning tier they move to next. Invoices A and B amount to $350 total. You decide to work with the customer and create a Payment Plan that gives the customer a chance to pay off the $350 instead.

Note: Dunning evaluates the oldest, open invoice which is why Invoice A is evaluated.

Once you create and activate a Payment Plan associated with Invoices A and B, neither invoice will be evaluated by Dunning. The Payment Plan you created includes four scheduled payment installments that total to $350. You decide to select Resume Plan as the action if a payment becomes delinquent for all but the last scheduled payment. You want to cancel the Payment Plan if the last payment isn’t made on time for the amount of $50.

The first payment installment is due by 8/1/2020. The Payment Plan Evaluation Service runs on 7/28/2020 because a $200 payment was applied to invoices in the Payment Plan. Since the first scheduled payment in the Payment Plan is for $100 and the second is for $100, the Remaining Amount for both scheduled payment 1 and 2 change to $0 for both and their Statuses change to Paid.

Note: The Payment Plan will not trigger auto payments for invoices on the plan. Payments can be applied instead via existing supported methods.

The Payment Plan Evaluation Service evaluates and keeps track of payments and credits made against invoices in the plan so that the system can update the Status of scheduled payment installments, update Amounts, and run appropriate actions, like plan cancellation, based on payment not meeting scheduled due dates.

The Payment Plan Evaluation Service runs again on 9/29/2020 because a $110 payment was applied to invoices in the Payment Plan. Since the first two scheduled payments in the plan have been paid, the payment is applied to the next payment installments. $100 is applied to payment installment 3. This changes the Remaining Amount to $0 and changes the Status to Paid. The remaining $10 applies to the fourth payment installment, making the Remaining Amount $40. The Status remains as Scheduled for the fourth installment because the full Amount has not been paid and the Due Date is in the future.

No more payments for invoices in the Payment Plan are made. On 11/2/2020, the Payment Plan cancels because the fourth payment installment Amount has not been paid in full, the Remaining Amount is more than $0 and the Due Date has passed, making the installment Delinquent. A status of Delinquent with an Action When Delinquent of Cancel Plan, cancels the Payment Plan.

Invoice A was paid in full while on the Payment Plan. Invoice B was partially paid. $40 remains outstanding.

With the plan cancelled, Dunning starts to evaluate Invoice B again, and, based on the new invoice data, the appropriate Dunning tier is assigned to the related billing account. Invoice C was never on a Payment Plan, so it continues to age in Dunning.

Note: Dunning evaluates the oldest, open invoice which is why Invoice B is evaluated and Invoice C is not. Invoice C will be evaluated by Dunning once Invoice B is closed.


Payment Plan Setup Overview

You will complete the following steps to get up and running with Payment Plans and Payment Plan notifications for your customers:

  1. Create an Active or Draft Payment Plan.
  2. Activate the Payment Plan if not activated upon creation.
  3. If sending an email notification (optional) to the customer, create a customized email template for each notification type.
  4. Enable notifications to be sent to the customer (optional).
  5. Review Payment Plan information.

Creating a Payment Plan

To create a new Payment Plan in the Gotransverse 2.0 billing platform, complete the following steps:

  1. Navigate to the Customer Billing application from the Gotransverse action menu .
  2. Click a Customer from the Customers list or search for a Customer.
  3. From the Customer action menu, click Create Payment Plan.
  4. In the Create Payment Plan window, enter the following:
  5. Plan Information
    Name*—Enter the name for the Payment Plan.
    Status*—Select Draft or Active status. an Active status starts the plan.

    Note: You can edit a Payment Plan when it is in Draft status. Once a plan is Active, you must make changes by cancelling and recreating the plan.
    Description—Enter a description for the Payment Plan.
    Plan Invoices*
    By default, all eligible invoices on the billing account are added to the Payment Plan. To remove an invoice from the Payment Plan, click the to the right of each invoice you do not want to include as part of the Payment Plan. You can use the invoice Search bar under the Plan Invoices list to search for a specific invoice.

    Note: Eligible invoices include all associated invoices that are open, undisputed, and not on another Payment Plan.
  6. Click Add Schedule Payment to enter the first payment installment information as part of your overall Payment Plan schedule.
  7. Plan Schedule
    Due Date*—Add the date the payment is due.

    Note: The first day the Payment Plan starts is the day the plan moves to Active status. The Due Date cannot be before this date.
    Amount*—Enter the amount due for the installment.
    Action When Delinquent*—Select the action that should happen when the payment is delinquent meaning the Amount is not paid by the Due Date.
    • Cancel Plan—Cancels the Payment Plan. The oldest invoice in the plan starts to be evaluated again by Dunning if Dunning is configured and Dunning tiers are set up in the system.
    • Resume Plan—Keeps the Payment Plan active. You might choose this option, for example, if you want to continue to try and collect payment from the customer.

    *Indicates required field.

  8. Add as many payment installments as needed to complete your Payment Plan schedule by clicking Add Schedule Payment and entering payment installment information under the Plan Schedule section for each installment as mentioned in Step 4 above.
  9. Click Create once your Payment Plan schedule is complete.

Editing a Payment Plan

To edit a Payment Plan:

  1. Navigate to the desired billing account, then click the Payments tab.
  2. Find the Payment Plan you want to edit, then complete one of the following actions:
    • Under Actions, click the ellipsis button for a Payment Plan listed in the Payment Plans pane, then click Edit Payment Plan.
    • Click the desired Payment Plan listed in the Payment Plans pane, then select Edit from the Payment Plan action button located near the top of the screen to the right of the Customer name.

    Note: You can edit a Payment Plan when it is in Draft status. Once a plan is Active, you must make changes by cancelling and recreating the plan.

  3. In the Edit Payment Plan window, edit initial payment plan creation details.
  4. To save your changes, click Edit.

Activating a Payment Plan

To activate a Payment Plan that is in Draft status, complete the following steps:

  1. Navigate to the desired billing account, then click the Payments tab.
  2. Find the Payment Plan you want to activate, then complete one of the following actions:
    • Under Actions, click the ellipsis button for a Payment Plan listed in the Payment Plans pane, then click Activate.
    • Click the desired Payment Plan listed in the Payment Plans pane, then select Activate from the Payment Plan action button located near the top of the screen to the right of the Customer name.
    • Note: Once a plan is Active, you must make changes by cancelling and recreating the plan.

Deleting a Payment Plan

To delete a Payment Plan:

  1. Navigate to the desired billing account, then click the Payments tab.
  2. Find the Payment Plan you want to delete, then complete one of the following actions:
    • Under Actions, click the ellipsis button for a Payment Plan listed in the Payment Plans pane, then click Delete.
    • Click the desired Payment Plan listed in the Payment Plans pane, then select Delete from the Payment Plan action button located near the top of the screen to the right of the Customer name.
  3. Click Yes to confirm the deletion.

Cancelling a Payment Plan

There are two ways to cancel a Payment Plan. The first is when the system automatically cancels the plan as a consequence of delinquency in paying the total amount of a scheduled payment in the plan by the due date. Configure the Action When Delinquent field to be Cancel Plan when creating a Payment Plan installment to cause a possible cancellation.

If the system cancels the plan, the Delinquent Payment Plan Reason is applied, the Payment Plan moves to Canceled status, and the oldest unpaid invoice in the Payment Plan starts to be evaluated by Dunning again if Dunning is configured and Dunning tiers are set up in the system. The new Dunning tier placement is based on the most up to date invoice data, for example, the age of the oldest invoice which includes the days it was on the Payment Plan. Otherwise, the unpaid invoices remain in the general system and continue to age if Dunning is not set up.

The other option is to manually cancel the plan when you believe the customer will not be able to meet the Payment Plan requirements, for example.

To manually cancel a Payment Plan:

  1. Navigate to the desired billing account, then click the Payments tab.
  2. Find the Payment Plan you want to cancel, then complete one of the following actions:
    • Under Actions, click the ellipsis button for a Payment Plan listed in the Payment Plans pane, then click Cancel.
    • Click the desired Payment Plan listed in the Payment Plans pane, then select Cancel from the Payment Plan action button located near the top of the screen to the right of the Customer name.
    • Note:

    • You can cancel a Payment Plan when it is in Active status.
    • Once a Payment Plan moves to Canceled status, the status cannot be changed.
  3. Select a reason for cancellation from the Payment Plan Reason drop-down in the Confirmation window.
  4. Note: If you need to add Payment Plan reasons to populate the Payment Plan Reason drop-down list, navigate to Setup > Reasons in UI 1.0, then follow the instructions on the Reasons Management page in our 1.0 user guide.

  5. Click Yes.

For API 2.0 Payment Plan documentation, visit our API reference documentation.