Extended Receivables FAQs

This topic contains a list of questions frequently asked by STORIS users about Extended Receivables (Installment and Revolving). If you click on a question, the answer appears. Please note that more than one solution may exist for a given situation. Read the answers completely to determine which method best suits your company's needs.

Two settings mentioned below impact whether or not insurance is defaulted onto a new plan.

1.) The Default Insurance from Other Plans setting in Revolving Receivables Control Settings allows you to default an insurance code on newly created plans if there is an existing insurance code on the customer's current plan. This includes delinquent, promotional, import, and manual transfers. When a revolving balance is transferred:

from a plan that does not have an insurance code to a plan that does not have an insurance code, no updates pertaining to insurance occur. When the customer's account is cycled, insurance charges are not calculated on either plan.
from a plan that has an insurance code to a plan that does not have an insurance code, the original plan retains the insurance code, which is added to the new plan. When the customer's account is cycled, insurance charges are calculated on both plans.
to a plan that already has an insurance code, no updates to the insurance occur, regardless of the insurance status of the original revolving plan. Both plans retain their original settings. If the new plan exists, no change to the insurance code occurs regardless of whether or not the current plan has an insurance code.

2.) Another setting in Revolving Receivables Control Settings, called Do Not Default Insurance After xx Days Of Inactivity, uses the customer's date of last activity to determine whether or not to default insurance on the pending plan.

In terms of how insurance is charged with standard monthly payments (SMPs), SMPs on the current plan that are added to the new plan should not have insurance charged, since those SMPs already had insurance charges when part of the current plan.

Fixed term plans and per sales order with a fixed term plans calculate the SMP with the insurance amount included. The current plan transfer code does not calculate the SMP for new fixed term plans and per sales order with a fixed term plans. The code calculates the standard monthly amount and includes the insurance code.

For general information, please see the Installment Receivables Overview and Revolving Receivables Overview.

Application of the insurance code does not pass through restrictions for age, customer's state, or the insurance code's jurisdiction. The Revolving Worksheet does not check for these restrictions and neither does the plan balance transfer.