Recovery

The Recovery page (System Management > Modules > Recovery) allows administrators to manage several features of the Lifecycle Management Suite's Recovery module. This page serves as a centralized hub for important Recovery settings.

The Recovery page is only available in System Management if the Recovery module is active in the Lifecycle Management Suite.

Recovery Settings

The Recovery Settings tab contains general recovery settings.

The following fields are displayed:

Field

Description

Default Calculation Method

From the drop-down, select one of the following methods used to calculate the Daily Interest Rate from the Annual Interest Rate:

Method

Description

Actual/Actual

Calculates the Daily Interest Rate by dividing the Annual Interest Rate by the number of days in a calendar year (365 or 366 for a leap year).

This calculation method is the most accurate.

Actual/360

Calculates the Daily Interest Rate by dividing the Annual Interest Rate by 360, which determines a uniform monthly interest amount.

Actual/365

Calculates the Daily Interest Rate by dividing the Annual Interest Rate by 365.

GL Account Delimiter

Enter a value that is used to separate GL Account Segments. For example, if ( . ) is entered. When a GL Account contains multiple segments it displays as 1111.2222.3333.

Max Number of Segments

Enter the maximum number of GL Account segments that can be created. This determines how many sub-accounts a GL can have.

Values that may be entered are 0-9, which allows for a maximum of ten GL segment levels.

Partial Charge Off Process

From the drop-down, determine if partial charge offs are supported by the Lifecycle Management Suite. By default this value is set to 'Yes.'

Charge Off Amount Calculation Method

From the drop-down, select one of the following methods used to determine how the net amount available for charge off is calculated:

Method	Description
Account Balance	The net amount available for charge-off is the value in Account Balance. This is selected by default.
Account Balance + Interest Due	The net amount available for charge-off is calculated as Account Balance + Interest Due.

Initial Balance Transaction Code

Repayment Plan Payment Transaction Code

From the drop-down, select the transaction code that is used to determine how balances and interest are applied when a payment is made on a repayment plan. This drop-down displays all active Payment/Recovery transaction codes configured in System Management > Recovery > Transaction Codes.

Interest Transaction Code

From the drop-down, select the transaction code that is used to determine how interest is accrued, recorded, and tracked during nightly interest calculation processing. This interest transaction code is also used to determine how interest is accrued for repayment plans as well as the GL Forward Accounts used in interest calculation.

This drop-down displays all active transaction codes configured in System Management > Recovery > Transaction Codes.

It is recommended that an interest transaction code is selected from the Interest Transaction Code drop-down.

Calculate Interest Pre Creation Date

From the drop-down, select whether or not interest is calculated on back-dated transactions that are before the Repayment Plan creation date.

Calculate Negative Interest

From the drop-down, select whether or not interest is calculated on a recovery account that has a negative balance.

If Yes is selected and interest is calculated on a negative balance recovery account, a negative interest value is created which drives the balance of the associated general ledger more negative and favors the debtor.

Principal GL Account

From the drop-down, select the default principal GL Account. This account is pre-populated in the Set GL Amounts workflow step during the charge off process.

Interest GL Account

From the drop-down, select the default interest GL Account. This account is pre-populated in the Set GL Amounts workflow step during the charge off process.

Grace Period

From the drop-down, select the number of days after a payment due date that a payment is considered delinquent. This drop-down defaults to a value of 0.

This value does not affect interest calculations.

This value is used in conjunction with the Is Delinquent flag on a Recovery Account or Repayment Plan. For example, Is Delinquent is set to true when the values for Next Due Date and Grace Period are less than the current date.

Include Non-Reimbursable In Balance

From the drop-down, select whether or not Non-Reimbursable Expenses and Non-Reimbursable Other balances are included in balance calculations.

When the Include Non-Reimbursable In Balance parameter is set to NO, Non-Reimbursable Expenses and Non-Reimbursable Other balances are not included in the following:

Repayment Plan calculations (amortization schedule, payment amounts and due dates)
the Current Balance and the Delinquent Amount for the Recovery account and Repayment Plan
the Remaining Balances displayed on the Scheduled Payments and Transactions panels
the Total Balance for All Accounts displayed on the Recovery Accounts panel

Require Reversal Reason

From the drop-down, select whether or not a user must identify a reason for reversing a transaction. When this parameter is set to YES, a Reversal Reason and Comment pop-up window is displayed when the Reverse Transaction button is clicked on the Recovery Account Transactions screen.

When finished defining the recovery settings, click . Upon clicking Save, if any required fields are not completed, an error is received indicating the fields that must be completed.

If a field does not contain any values in its drop-down, that field is not required for completion of the Recovery Settings tab.

Repayment Plan Screens

The Repayment Plans Screens tab provides a list of the Repayment Plan type screens created in the Lifecycle Management Suite and enables administrators to select the screens that are displayed within the Repayment Plan tab when a repayment plan is created or opened in the workspace.

This tab provides administrators with the ability to select the screens that are displayed within the Repayment Plan tab when a Repayment Plan is created or opened in the workspace. Each of the screens selected within this tab appear as separate tabs within the Repayment Plan tab.

To include a screen as a tab in the Repayment Plan tab in the workspace, select the Include check box next to the desired screen. Arrange the order in which the tabs are displayed by dragging and dropping the screens into the desired locations. The order the screens appear on this tab (top to bottom) is the order in which the tabs appear within the Repayment Plan tab in the workspace (left to right). When finished selecting and arranging the screens, click .

Each of the Repayment Plan screens selected appear as separate tabs within the Repayment Plan tab in the Overview section of the workspace.