Set Up Automated Payments with Multiple Payment Modes and Retrial Attempts

Overview

You can use the Set Up Automated Payment button on the loan contract to define how one time and recurring payments must be processed. For example, you can specify the transaction amount, the payment mode, and debit date(s) for the recurring or one time automated payments. This setup applies to ACH payments created for all business events, such as loan payments, loan payment refunds, or investor payments. This functionality rests on the payment modes and file generation being configured for each business event. If you are setting up automated payments using this button, then you do not need to use the One Time ACH and Recurring ACH buttons to set up the payments.  

As part of the one time ACH setup, you can additionally specify the payment spread to be used. When the Loan Payment Transaction Creation Job runs, it queries for and uses the payment spread you have specified. This allows you to apply the desired spread to the ACH payment same as for a manual loan payment transaction. You can create multiple automated payment setups for one time and recurring ACH payments.

Loan payment transactions are created for all the payment setups active on a given day, at the frequency defined in the APS. The Billing Frequency value of this picklist ensures that the APS frequency is in sync with the billing frequency if the latter changes due to conditions defined on the contract. For example, business holiday and holiday schedules created for a loan contract, or a reschedule of an LOC may result in bill dates that do not follow the bill schedule. The ACH date in such cases gets adjusted to the current billing frequency of the contract.

If you are upgrading to CL Loan 2.5008 or later, you must add the Billing Frequency to the Frequency picklist.

Payment Retrials

There may be situations where a borrower's payment is rejected by a bank, because of insufficient funds in the borrower’s bank account. Funds become available in the borrower’s bank account after some days. You may want to retry processing the payment at this time. You can set up CL Loan to reattempt a rejected automated payment. There is a configurable wait time (# of days), which defines the number of days between two payment attempts. You can also define the number of failed attempts after which an NSF charge must be applied on the contract.

UI Enhancements

This section lists the user interface enhancements made in various releases.

Set Up Automated Payments

Prerequisites

Before setting up automated payments for a loan, ensure that the following prerequisites are met:

• The loan is in Active status.
• Bank information of the borrower and the lender is set up. The system uses the bank name to process the NACHA file. 
• ACH parameters are defined.
• Automated payment configuration is defined.
• The Enable New Spread Option in Org Parameter custom settings is selected (to select payment spread for one time ACH).
• The Multiple Payment Method Support option in Start of Day Job Chaining custom settings is selected (to select payment spread for one time ACH).

Steps

Perform the following steps to set up automated payment setup for loan payments:

1. Log in to your Salesforce account.
2. Click CL Contracts. 
3. Select the required contract.

4. On the contract page, click Setup Automated Payment.

   Set Up Automated Payment

   

5. In the Automated payment setup against the loan:... page, provide the details as described in the following table, and then click Save.

   You can refer to the Automated Payment Setup image as an example.

   Field	Action and Description
   General Informations Section
   Type	Select the type of ACH for which you are defining the payment setup.  This can be ONE TIME or RECURRING.
   For a ONE TIME Setup:
   Bank Account	Select the borrower's bank account from where the funds are debited.
   Payment Mode	Specify the mode in which payment is made. For example, you can specify Cash, ACH, Check, or any other payment mode you have set up.
   Transaction Amount	Specify the payment amount.  Note: This field is used in the case of ONE TIME setup. This field is also used in the RECURRING setup only if the Amount Type of the payment is FIXED.
   Debit Date	Specify the date on which the amount is withdrawn or debited from the borrower's bank account.
   Payment Spread	Select the payment spread as per which the payment amount must be applied to the outstanding balances. This is applicable only for ONE TIME transactions. For example, you may have defined a payment spread of Fee, Interest, and Principal. Note: To select a custom payment spread, you must have selected the Enable New Spread Option org parameter.
   For a RECURRING Setup:
   Amount Type	Select the method by which the system must calculate the payment amount. You can select one of the following: FIXED AMOUNT: If this is selected, the system considers the amount specified in the Transaction Amount field. LAST BILLED AMOUNT: If this is selected, the system considers the bill amount of the last generated bill. In the example below, payment would be processed for 172. CURRENT PAYMENT AMOUNT: If this is selected, the system considers the payment amount that is currently due as per the payment schedule of the loan. OLDEST UNPAID BILL AMOUNT: If this is selected, the system considers the sum of all bills that are unpaid as on the oldest unpaid due date. TOTAL OUTSTANDING BILL AMOUNT: If this is selected, the system considers the sum of all unpaid bills and unpaid charges that are not included in dues, as on the debit date. LAST BILL BALANCE AMOUNT: If this is selected, the system considers the pending or the remaining amount to be paid from the latest bill. CUSTOM: If this is selected, the system considers the logic in the custom class for the Amount Type so that any type of amount for the LPT can be specified by the custom code. Example Let us consider the following: Bill Value Bill Date Bill 1 238 February 5, 2016 IOA Bill 130 February 4, 2015 (for Flexible AMZ loans) Charges 200 February 5, 2015 Bill 2 172 March 5, 2015 IOA Bill 145 March 4, 2015 Charges 200 March 5, 2015 For the Amount Type as Oldest Unpaid Bill Amount, if Debit Date = March 5, then the payment is processed for 238 + 130 = 360. For the Amount Type as Total Outstanding Bill Amount, the Total Outstanding Bill Amount = Sum of all unpaid bills and unpaid charges that are not included in dues, as on the debit date. Hence, in the preceding example, payment would be processed for: 238 + 200 + 172 + 145 = 755. If you are upgrading from a previous version to CL Loan 2.3007, you must add the OLDEST UNPAID BILL AMOUNT and the TOTAL OUTSTANDING BILL AMOUNT to the Amount Type picklist. Note: For steps to do this, see the Select Amount Type for APS section in the Recommended User Interface Layouts > Layout Customization for Key Q2 Loan Servicing Features > CL Loan 2.3007, Vela release section of the Q2 Loan Servicing Administration Guide.  If you are upgrading from CL Loan 2.3007 to Q2 Loan Servicing 3.8xxx, you must add the LAST BILL BALANCE AMOUNT to the Amount Type picklist. Note: For steps to do this, see the Titanium (3.7005) to Spring'22 (3.8xxx) section in the Q2 Loan Servicing(CL Loan) and Marketplace Upgrade Steps section of the Q2 Product Upgrade Guide.
   Payment Mode	Specify the mode in which the payment is to be made. For example, you can specify ACH, Check, Cash, or any other payment mode you have set up.
   Bank Account	Select the borrower's bank account from where the funds are to be debited.
   Debit Date	Specify the date on which the amount is to be withdrawn or debited from the borrower's bank account. This date must fall between the recurring ACH start and end dates.
   Recurring ACH Start Date	Specify the date starting which the recurring payment setup is in effect or the recurring ACH is enabled for the contract.
   Frequency	Specify the frequency of the payments. This frequency can be different from the payment frequency of the loan.  If you select Billing Frequency here, the APS date is adjusted as per the billing date on the contract.
   Recurring ACH End Date	Specify the date up to which the recurring payment setup is in effect or the recurring ACH is enabled for the contract.
   Amount Type Split Factor	Specify the value that defines how the Amount Type should be split. For example, if the Amount Type is Current Payment Amount and the Amount Type Split Factor is 4, then the LPTs are created for Current Payment Amount/4.
   Retry Details
   Retry	Select Enabled from the Retry drop-down list to reattempt a rejected ACH payment. If no value is specified in the Retry field, the system assumes the value of Disabled and does not re-attempt a failed or rejected payment. This field indicates whether the payment retrial option is available for the transaction. This can be Enabled or Disabled. A null value is defaulted to Disabled.
   Return Codes for Retry	Select the Return Codes for which you want to retry payments. Return codes are customer-specific. For example, RO1 is associated with Non-Sufficient Funds.
   Number of Retry Attempts	Specify the number of times the system must reattempt the rejected payment.
   Retry Attempt Interval (in days)	Specify the number of days that should be between two retrial attempts. These number of days are considered after a rejection.
   Apply NSF on Attempt	Select the failed attempt number on which a charge for Non Sufficient Funds must be applied. For example, the lender may apply an NSF fee after the third attempt if a transaction is rejected by the bank repeatedly.