Payment Plans

A Payment Plan (Plan) is comprised of scheduled payments and allows you to create and manage them 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 status. You can also set up auto-payment of scheduled payments in the Payment Plan if your customer has an auto-payment on file. The Gotransverse billing platform allows you to create, edit, activate, delete, or cancel a Payment Plan.

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

Column Name Description
Date The date a scheduled payment is due.
Amount The total amount due on the scheduled payment .
Delinquent Payment Action The action that occurs when the scheduled payment 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 scheduled payment after payments/credits are deducted.
Status The status of the scheduled payment.

Options:
  • Scheduled—Displays when the payment 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 scheduled payments 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. You can control which dunning tier the account moves to once invoices with remaining balances are reintroduced from a Payment Plan back into Dunning.

Use Case Example

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 based on due date 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 payments 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. You set the Cancel Invoice Action during Plan creation to Reset Invoices so that when a Payment Plan cancels and its invoices with balances go back into Dunning, the invoice due dates change to the date the Payment Plan cancelled.

The first scheduled payment is due by August 1, 2020. The Payment Plan Evaluation Service runs on July 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 system can trigger an auto payment for remaining scheduled payment due amounts on their scheduled payment due dates. This could include a cumulative amount of a previous scheduled payment if the previous scheduled payment was not paid off on a Plan. To enable auto-payments, select the Enable Auto-Payment check box during Plan creation or edit. 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 payments, 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 September 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 scheduled payments. $100 is applied to scheduled payment 3. This changes the Remaining Amount to $0 and changes the Status to Paid. The remaining $10 applies to the fourth scheduled payment, making the Remaining Amount $40. The Status remains as Scheduled for the fourth scheduled payment 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 November 1, 2020, the Payment Plan cancels because the fourth scheduled payment 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 on November 1 and the Cancel Invoice Action set to Reset Invoices, the invoice due date for Invoice B changes from May 30 to November 1. With Invoice B back in Dunning, the Dunning Evaluator starts to analyze Invoice C on November 1 because C is now the oldest invoice based on its invoice due date since it continued to age in Dunning. Invoice B is now 0 days overdue. If Invoice B had been the only invoice in Dunning, it would have been evaluated by the Dunning Evaluator and the billing account would have fallen to Dunning tier 0, or, the No Dunning tier.


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, 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 Account action menu, click Create Payment Plan.
  4. In the Create Payment Plan window, enter the following:
    Plan Information
    Name*—Enter the name for the Payment Plan.
    Status*—Select Draft or Active status. an Active status starts the plan.
    Description—Enter a description for the Payment Plan.
    Cancel Invoice Action—Select the action that should happen to invoice due dates when invoices on a Payment Plan move to Dunning after the Plan changes to Canceled status. If you aren’t using Dunning, do not select an option.
    • Reset Invoices—Updates invoice due dates, for Payment Plan invoices with remaining balances, to the Payment Plan cancel date. It performs this action as soon as the Payment Plan is cancelled. For example, if the original due date for an invoice was June 2 while in Dunning, then it moved to a Payment Plan on June 2, and the Plan cancelled on July 2, the new invoice due date would change to July 2. This can be used to set Dunning tier back to 0. This works when the invoice that moves back to Dunning is the oldest invoice, or, only invoice in Dunning.
    • Restart Invoices—Increases invoice due dates, for Payment Plan invoices with remaining balances, by the number of days the Payment Plan ran. For example, if the original due date for an invoice was May 2 while in Dunning, then it moved to a Payment Plan on June 2, and the Plan cancelled on July 2, the invoice due date would change to June 2 because the duration of the Plan was 30 days and the original due date was May 2. This can be used to move an account back to the Dunning tier it was on just before you started a Payment Plan (if the invoice is the oldest invoice in Dunning).
    If you don’t select an option, the invoice due date doesn’t change from its original due date.
    Invoice due Date Offset—Enter a number that will offset invoice due dates for invoices in cancelled Payment Plans. This number will be applied to the invoice due dates that occur with the configured Reset Invoices or Restart Invoices actions. This allows even more control in what dunning tier your customers’ accounts fall into since Dunning placement for accounts is based on invoice due date calculations.
    Enable Auto-Payment—Select the check box to enable auto-payment of scheduled payments in the Plan by their due dates if the customer has an auto-payment configured in the system. If not enabled, payments can be applied instead via existing supported methods.
    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.
  5. Click Add Schedule Payment to enter the first scheduled payment information as part of your overall Payment Plan schedule.
    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 Dunning starts to be evaluated again 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.

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

Editing a Payment Plan

You can edit a Payment Plan in Active or Draft status. If a Payment Plan is Active, you can only edit fields under the Plan Information section of the Edit Payment Plan window.

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 Payment Plan from the Payment Plan action menu located near the top of the screen to the right of the Account number.
  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 menu located near the top of the screen to the right of the Account number.

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 menu located near the top of the screen to the right of the Account number.
  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 Dunning continues to be evaluated 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. 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 menu located near the top of the screen to the right of the Account number.
    • 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.

Once the Plan is cancelled, the unpaid invoices in the Plan move to Dunning based on the Cancel Invoice Action field configuration you set when you created or edited your Plan.

If you didn’t choose either option in the Cancel Invoice Action field, the day the Plan was cancelled counts. For example, if an invoice is 90 days overdue when initially in Dunning, then is moved to a Payment Plan, and the Plan cancels after one month, or 30 days, the invoice would be 120 days overdue and placed in to Dunning based on that calculation.

If the Invoice Due Data Offset is configured when you create or edit a Plan, the number of days you enter in the field will be applied to the invoice due dates that occur with Reset Invoices or Restart Invoices actions. This allows even more control in what dunning tier your customers’ accounts fall into since dunning placement for accounts is based on invoice due date calculations.

The oldest unpaid invoice in Dunning 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. Otherwise, the unpaid invoices remain in the general system and continue to age if Dunning is not set up.

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