How To Manage Promised Payments
Promised payments and installment payments are easily
managed in Collect! using built-in financial and contact
Collect!'s Billing Tree Service also uses
these functions to implement a fully featured automatic
There are basically three types of promise management,
each serving a different purpose.
- Promise Contacts - When payments are irregular,
possibly inconsistent and perhaps incomplete, Promise
contacts offer the same automatic tracking and calculations
as a Payment Plan with added flexibility that is lacking in
a Payment Plan.
- Payment Plans - When payments are expected to be
uniform and paid consistently and on time, a Payment
Plan is set up on the account. This posts a definite
repayment schedule using transactions with no
Posted Date. This is useful for credit grantors and for
any business that sells services or products with a
contractual payment agreement.
- Post-Dated Payments - Post-dated transactions with
no Posted Date may be posted as needed to an account,
without using a Payment Plan. This may simply be a
single promised payment or multiple payments. Using
contact plans, you can perform a customized series
of actions to manage special promise agreements, such as
automatic monthly debit from a bank account. One
advantage of a contact plan approach is that post-dated
transactions are created as needed by the plan, rather
than generated all at once. This can make a considerable
difference when a plan runs for several years.
Each of these methods is described more fully below.
Promised payments may be managed using the Promise
contact. A no repeat Promise contact may be scheduled for a
single promise. The repeating Promise contact is very useful
for scheduling payments in a loosely structured " payment plan."
At any given time, there is only one Promise contact
scheduled for a particular Debtor. This contact revolves until
the debtor's Owing reaches zero. Contact plans may be executed
for full payment, overpayment, underpayment, and NSF payments.
Broken promises may be managed through batch processing.
Please refer to Introduction To Promises.
Contractual payments may be managed using a Payment Plan.
You choose a number of payments to complete the contract
and a payment period, e.g. Monthly. When the plan is set up,
transactions with no Posted Date are created for every
payment in the entire repayment period. The last payment is
adjusted accordingly so that the Debtor's Owing will result in zero.
Contact plans may be executed when the plan is set up and
when a payment is received to send letters of confirmation and
When you post a payment, you select the appropriate transaction
from the list and enter the Posted Date so that Collect! can
tally the payment into the daily and monthly totals.
If there is any chance that the payments will not
be regular or consistent, you are advised to use Promise
Please refer to Payment Plan Topics.
A Post-Dated Payment is a Payment Transaction with a Paid
Date, a payment amount in To Us, and NO Posted Date.
Contact plans provide a very comprehensive way to track
monthly payments using post-dated payments. This is
the preferred method for producing an electronic transfer file
for direct debit and when setting up post-dated checks.
Whenever payments are posted according to the promised
agreement, confirmation of payment and a reminder of the
next due date may be scheduled automatically. This is
especially useful to fulfill requirements for direct debits and
post-dated checks. A new post-dated transaction is
scheduled automatically for the next withdrawal.
Please refer to Introduction To Post-Dated Payments.
Managing Payments With Billing Tree Service
Billing Tree Service enables you to process credit card and
ACH payments electronically through Collect!'s Billing Tree
connection. This is a full-featured solution for managing single
and recurring payments made by credit card or by bank draft.
External payments posted at the Billing Tree web site are
also reconciled and posted within Collect!. Recurring
scheduled payments are fully managed within Collect!'s
promised payment system.
- Promise Contact Topics
- Payment Plan Topics
- Post-Dated Payment Topics
- Billing Tree Service