Fee behavior
This feature enables you to define if the fees generated during a billing cycle is to be added on the dues or not. This behavior is manged using the Add Fee Amount to Bill and the Included in Dues flags.
Here are a few examples to explain how the two flags work in tandem with each other.
Examples
The following examples describe the impact of this fee behavior on the bills and the payments.
Scenario1:
Add Fee Amount to Bill = True, Included in Dues = True, Payment Order = FIP
| Bill # | Fees | Payment Due | Bill Amount (Payment Due + Fees) | Payment Made | Bill Components Satisfied | Balance (Bill Amount - Bill Components Satisfied) | Delinquent Amount (Balance amount of bill 1 + balance amount of bill 2 +...) |
|---|---|---|---|---|---|---|---|
| 1 | 150 | 2500 | 2650 | 2500 | F = 150 P + I = 2500-150 = 2350 | 150 | 150 + 0 = 150 |
| 2 | 100 | 2500 | 2600 | 2600 | F = 100 P + I = 2600-100 = 2500 | 0 |
Scenario 2:
Add Fee Amount to Bill = False, Included in Dues = True, Payment Order = FIP
| Bill # | Fees | Payment Due | Bill Amount (Payment Due + Fees) | Payment Made | Bill Components Satisfied | Balance (Bill Amount - Bill Components Satisfied) | Unpaid P + I | Delinquent Amount (Unpaid P + I of bill 1 + unpaid P + I of bill 2 +...) |
|---|---|---|---|---|---|---|---|---|
| 1 | 200 | 2500 | 2700 | 2500 | F = 200 P + I = 2300 | 200 | 200 | 200 + 0 + 2500 = 2700 |
| 2 | 100 | 2500 | 2600 | 2700 | F = 100 P + I = 2700-100 = 2600 Note: An excess payment is made in this case. | 0 | 0 | |
| 3 | 150 | 2500 | 2650 | 100 | F = 100 P + I = 0 | 2550 | 2500 Note: There is an unpaid fee of 50 but that is not considered for calculating the delinquent amount. |
Scenario 3:
Add Fee Amount to Bill = False, Included in Dues = False, Payment Order = FIP
| Bill # | Fees | Payment Due | Bill Amount (Payment Due + Fees) | Payment Made | Bill Components Satisfied | Balance | Unpaid P + I | Delinquent Amount (Unpaid P + I of bill 1 + unpaid P + I of bill 2 +...) |
|---|---|---|---|---|---|---|---|---|
| 1 | 150 | 2500 | 2500 | 2500 | P + I = 2500-150 = 2350 Note: The amount of 150 is paid towards the fees, but that is not a part of the bill because the Include in Dues flag is set to False. | 150 | 150 | 150 + 0 = 150 |
| 2 | 100 | 2500 | 2500 | 2600 | P + I = 2600-100 = 2500 Note: The amount of 100 is paid towards the fees, but that is not a part of the bill because the Include in Dues flag is set to False. | 0 | 0 |
Scenario 4:
Add Fee Amount to Bill = True and Included in Dues = False
This scenario is invalid because the fee is not added to the bill amount so it will not impact the billing and the payments.
Configuring the fee behavior
You can configure the Include in Dues flag while defining a fee from Servicing Configuration > Manage Fees. The configured behavior applies only to the fee defined with this behavior.
You can configure the Add Fee Amount to Bill flag while creating a lending product. The configured behavior of the flag applies to all the fees associated with the product.