Tracking Promises to Pay

Promises to pay are tracked automatically when entered through the Promise Tab in the Workspace.

All promises in worklists assigned to the logged in user that are due today and tomorrow appear on the user's Elements home dashboard.

For core-maintained loans, promises are tracked through the nightly Download. The loan's current Amount Due is compared to the new Amount Due and the difference between the two is checked against the outstanding promise for the loan. The Amount Paid and Date Paid fields on the Promise Detail screen are updated automatically.

The Status of the promise is also defined based on the following:

Promise Status	Description
Broken	If the amount increases or does not change and the promise date is past, the status changes to Broken.
Outstanding	If the amount increases or does not change and the promise date is today's date or in the future, the promise remains Outstanding.
Kept	If the difference is equal to or more than the promise amount, the status changes to Kept.
Current	If the current amount due is set to 0.00 due to the promise to pay, the status changes to Current.
Partially Kept	If the amount decreases but the difference is less than the promised amount and the promise date is past, the status changes to Partially Kept.
Outstanding	If the difference is less than the promised amount and the promise date is today's date or in the future, the status changes to Outstanding.
NSF	Under special circumstances, a Kept or Current promise can be changed to have the status of NSF.

Tracking Multiple Promises

If there is more than one promise on an account, the earliest promise is checked first. If that amount has been paid, the promise is marked as Kept. The remaining amount is checked against the next promise in the list.

For example, a client has one $400 promise pending for August 21 and another $300 promise for August 28. After the morning download on August 22, the Amount Due decreased by $600. The August 21 promise is marked as Kept, as all of the $400 has been paid, and the August 28 promise displays a $200 payment applied to it. The August 28 promise remains Outstanding until after the download on the morning of August 29. If no other payment is applied, the promise for the 28th is marked as Partially Kept. If a further payment of $100 is made, the promise is marked as either Kept or Current depending on whether the account is still delinquent.

If multiple post-dated promises have been made for one loan ($50 on August 1, $50 on August 15 and $50 on September 1), the follow-up date can automatically be advanced based on the next outstanding promise once the first promise has been kept.

For example, if the default advance behavior for the PTP call type is 1, and if the first promise is kept on July 31, the follow-up date is advanced to August 16, the day after the next scheduled promise.

NSF Promises

A promise to pay on a core-maintained loan is marked as Kept or Current when then change in the amount due on the loan is reduced by the amount of the promise. It is possible that the funds applied to the account will be reversed at a later date. If desired, and if the institution's core provides the necessary information, Elements can be configured to identify these situations and mark the promise as NSF.

To make use of this feature, the nightly download file from the core must include the following information:

Date of Last NSF
Amount of Last NSF

To turn on this functionality the institution must:

Set the "Number of Days for Check to Clear" value in Default Settings.
Map the Date of Last NSF and Amount of Last NSF values in the download file to the appropriate fields in the Elements database. This is performed through the Elements download.

NSF Processing

A promise is entered and marked with a status based on standard promise logic.
Every time the download runs, the following checks are executed if the Date of Last NSF value in the file is different from the value of that field in the Elements database:
- Is there a Kept or Current promise for that loan?
- If so, is the amount of the promise the same as the Amount of Last NSF in the file?
- If so, is the Date of Last NSF greater than the Promise Paid Date?
- If so, is the Date of Last NSF less than or equal to the Promise Paid Date PLUS the Days to Clear value
If all of the above conditions are met:
- The promise status is changed to NSF.
- The Amount Paid on the promise is changed to zero.
- A Promise NSF auto note is added to the account, if that feature is turned on.

The following table provides examples of NSF Processing.

Example	Description
Example 1	A client has a $400 promise due for August 21. The Number of Days to Clear is set to 7. After the morning download on August 22, the Amount Due decreased by $400. The promise is marked as Kept. On August 27, the download files indicate that a check has been returned. The Date of Last NSF shows August 26 and an Amount of Last NSF of $400. The promise is marked as NSF since the Date of Last NSF is less than August 21 PLUS 7.
Example 2	A client has a $400 promise due for August 21. The Number of Days to Clear is set to 7. After the morning download on August 22, the Amount Due decreased by $400. The promise is marked as Kept. On August 30, the download files indicate that a check has been returned. The Date of Last NSF shows August 29 and an Amount of Last NSF of $400. The promise remains Kept since the Date of Last NSF is later than August 21 PLUS 7.