Payment Agreement processing provides a method for you to mass update revolving accounts with customer payments received from sources such as automatic deductions from payroll, Social Security, Veteran’s Administration, insurance companies, etc.
After you finance and complete orders with revolving plans set to allow payment agreements, you can generate a payment report that you send to the source informing them of the payment amounts that are to be remitted for customers with payment agreements. You can also generate the payment file that is to be used when posting the payments to the accounts.
Customer payment information can be imported and processed on demand, via End of Day processing, or both.
Revolving plans with payment agreements cycle in the same way as regular revolving plans, with the exception of MMP generation. For payment agreement plans, 1, 2, or 4 MMP’s are generated, depending on the Payments Per Month established for the source. The total MMP amount for the month is divided by the customer’s number of payments per month to determine the total amount of each scheduled payment. The breakdown of principal, interest, and insurance is determined for each scheduled payment, along with the associated due date.
Payment agreement information is included in the XML file for revolving statements. In addition, data elements for Source, ID, and Payments per Month are available to be added to revolving statements using enhanced laser printing.