Amount Types

With the Spring'22 release of Q2 Loan Servicing, the following two additional values have been added to the list in the Amount Type field of the Automated Payment Setup page:

• LAST BILL BALANCE AMOUNT

• CUSTOM

The complete list of values of the Amount Type picklist field are:

• FIXED AMOUNT

• LAST BILLED AMOUNT

• CURRENT PAYMENT AMOUNT

• OLDEST UNPAID BILL AMOUNT

• TOTAL OUTSTANDING BILL AMOUNT

• LAST BILL BALANCE AMOUNT

• CUSTOM

Amount Type: Last Bill Balance Amount

If this value is selected, the system considers the pending or the remaining amount to be paid from the latest bill. This means that the system creates an LPT for the amount that is pending from the last bill amount, and then pays it as per the payment spread defined toward the oldest unpaid bill amount.

Let us consider the following two scenarios:

• When the account is ahead of its dues.

  This means that you have paid an extra amount and that extra amount is set as a reserve amount for the next due. In such cases, for the upcoming bill, the system should make a direct debit for the amount that is calculated after the reserve amount is deducted from the last bill amount. Hence, direct debit must be made for the last bill balance amount, and not the outstanding bill amount.

• When the account is delinquent.

  This means that there have been payments pending from the borrower and so there are bills or a bill that is due. In such cases, for the upcoming bill, instead of making the direct debit for the outstanding bill amount, the system should make the direct debit for the latest pending bill amount that was not paid due to which the loan contract had become delinquent. The system then pays this amount toward the oldest unpaid bill amount.

  Note:

  If more than one bill are existing, then the system creates an LPT amount for the amount not paid on the latest bill. However, this amount will be paid toward the oldest bill not paid.

  Thus, as understood from the preceding two scenarios, if the loan account is delinquent or is ahead of its dues, the direct debit logic should check the balance amount to be paid in the last billed amount and pay that amount. To include such logic in the system, Q2 Loan Servicing has been enhanced to include Last Bill Balance Amount as one of the types of amount that should be considered for the direct debit. Thus, the direct debit via the APS takes place for the amount that is actually pending, and not the quoted outstanding bill amount.

  In Q2 Loan Servicing, when the Payment Application Mode is selected as Future Dues, the bill may be partially satisfied by the amount in Reserve Amount For Next Due. When this happens, the direct debit amount that is generated for that day should be equal to the balance remaining on the bill and not the whole balance. If there is no due on the bill, then no payments are generated and the system moves the debit date to the next debit date.

  On selecting LAST BILL BALANCE AMOUNT as the Amount Type, an LPT is created for the latest bill's balance amount.

Objects updated to include the Last Bill Balance Amount amount type

A picklist value named Last Bill Balance Amount has been added to the Amount Type picklist of the Automated Payment Setup (loan) object.

Example

Let us look at the following scenarios to understand the Last Bill Balance Amount:

Scenario 1: Payment after the bill is generated 28 days before the next due date

Since the pre-bill days is 28, a bill of $1,000 will get generated on March 4, 2019.

On March 4, 2019, let us make a payment of $100 in cash.

Then since the APS Amount Type is Last Bill Balance Amount, the system will do a direct debit of the remaining pending amount of $900, and an LPT for APS of $900 is thus created in the system because $100 has already been paid in cash.

Scenario 2: Payment in Advance Before the Bill Gets Generated

Let us make a payment of $100 in cash before the bill is generated. This amount will be considered as Reserve Amount For Next Due.

An LPT of $100 is created.

On April 1, 2019, say a bill of $1,000 is generated.

Then since the APS Amount Type is Last Bill Balance Amount, the system will do a direct debit of $900, and an LPT for APS of $900 is created in the system. This is because $100 is already paid from the reserve.

Scenario 3: Payment in Excess

On April 1, 2019, a Bill-1 gets generated of $1,000.

Let us say we make a payment of $1,500. 

As a result:

• $1,000 will be considered as payment made for Bill-1.

• $500 will be considered as Reserve Amount For Next Due.

On May 1, 2019, let us say that Bill-2 is generated of $1,000.

As a result:

• An LPT of type Excess for $500 is created. This means that part of the Bill-2 amount is paid from the reserve. Hence, the remaining amount of the Bill-2 that is unpaid is $1,000 - $500 = $500.

• An LPT for APS (direct debit) of $500 is created as $500 is the remaining amount of the bill to be paid.

Scenario 4: Fee Amount is added to the Bill

Let us say we have the following FAMZ contract:

Let us say the following bills are generated and unpaid:

The system creates an LPT for APS of the latest bill amount (Last Bill Balance Amount) that is of July 1, 2019, as a sum of all bills on the last billing day = $800 + $15 = $815. 

This amount is then paid as per the defined payment spread.

Let us say that the payment spread is in the following order:

1. IOA

2. Fee

3. Interest

4. Principal

Then the amount will be paid toward the following bills in the following order:

1. $15 is paid toward Bill-5.

2. $10 is paid toward Bill-3.

3. $(815 - (15+10)) = $(815 - 25) = $790 is paid toward the Bill-1 as it is the oldest unpaid.

Amount Type: Custom

Earlier, you could only set up the automated payment for the amount types listed in the Amount Type field. However, there was a requirement to create APS for amounts that included certain fees that have been created in the current billing cycle. 

For example, if the following are the scheduled dates:

• January 5

• February 5

• March 5

Let us say that a periodic charge is created on February 25 that needs to be included in the amount that the LPT is created for. But, before the Sping'22 release, there was no option in the Amount Type field to include such an amount.

With the Spring’22 release, a new option named Custom is provided in the Amount Type field of the Automated Payment Setup so that any type of amount for the LPT can be specified by the custom code.

You can provide your custom class name to the Custom APS Amount Type Class field of the Setup > Custom Settings > Custom Hooks in your Salesforce org. And then, once you select the Amount Type as Custom, the logic provided by your custom class will be implemented and the amount specified in the custom code of that logic will be considered for the LPT.

Objects updated to include the Custom amount type

• A picklist value named Custom has been added to the Amount Type picklist of the Automated Payment Setup (loan) object.

• A new field named Custom APS Amount Type Class has been added to the Custom Hooks object

APIs updated to include the Custom amount type

A new class named AbstractCustomOptionForAPS has been added. The custom class needs to extend this class.