Temenos Lifecycle Management Suite - Recovery Product Guide
Repayment Plan Accounts
| End-User Guide > Recovery Process > Repayment Plans > Repayment Plan Accounts |
The Repayment Plan Accounts panel displays all accounts associated with a repayment plan. This panel allows users to easily see the accounts that are involved in a repayment plan, as well as the General Ledger (GL) entries for each account. This panel also provides users with the ability to add additional accounts to a plan, remove accounts from a plan, refresh account balances, and set account allocations.
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In order for this panel to be displayed within the workspace, it must be included in the Repayment Plan Screen configured in System Management > Modules > Recovery. |
By default, each account associated to the repayment plan, either during creation of the plan or by clicking Add Account within this panel, are listed in a grid.
Information is displayed within the following grid columns on the Repayment Plan Accounts panel:
| Column | Description | ||
| Account |
Displays each recovery account number and each GL entry associated with the recovery account.
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| Amount | Displays the full balance of the recovery account as well as the amount included in each GL account. | ||
| Amount To Include |
Displays the amount of the balance that is included in the repayment plan.
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| % To Include | Displays the percentage of the balance that is included in the repayment plan. |
The following actions can be performed within the Repayment Plan Accounts panel:
In the Repayment Plan Accounts panel, the values for Amount To Include and % To Include can be updated directly within the panel grid. To manually update these values, click within each field and enter a new value.
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In order for the Amount To Include and % To Include fields to remain in sync, when one of these fields is manually updated, the other field is automatically updated upon pressing Enter on the keyboard or clicking out of the field. For example, if the balance of a recovery account is $1,000.00 and the Amount To Include is manually updated to $800.00, the Percent To Include automatically updates to 80% and is applied to each of the component balances (GL accounts). |
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At least $1.00 must be allocated to each account's Amount To Include. Negative amounts or amounts larger than the account's balance are not allowed. Errors are received if negative amounts or amounts larger than the account's balance are entered within the Amount To Include field. |
When finished updating the Amount To Include and/or % To Include fields, click 
at the top of the screen containing the Repayment Plan Accounts panel.
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Accounts cannot be added to a repayment plan if the status of the plan is Active, Delinquent, or Cancelled. |
To add an account to a repayment plan, click Add Account. The Add Account pop-up window appears displaying the related accounts for the person in context that are charged-off, but not yet included in the repayment plan.
Select the account to include in the repayment plan and click Add Account.
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Only one account can be selected at a time within the Add Account pop-up window. |
Upon clicking Add Account, the Add Account pop-up window closes and a message appears to indicate that the account was added successfully. Click OK to close the message.
The Repayment Plan Accounts grid automatically refreshes to display the new account with the balances as of today's date.
When all accounts have been added, click 
at the top of the screen containing the Repayment Plan Accounts panel.
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For information on how funds are allocated after a new account is added, refer to the Fund Allocation for Accounts Added to a Repayment Plan section located in this guide. |
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Accounts cannot be removed from a repayment plan if the status of the plan is Active, Delinquent, or Cancelled. |
To remove an account from a repayment plan, select the account within the Repayment Plan Accounts grid and click Remove Account. A prompt appears to confirm that the account should be removed from the repayment plan. Click Yes.
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At least one recovery account must be included in a repayment plan. If a user tries to delete the only account associated with a repayment plan, an error is received upon clicking Remove Account that states at least one recovery account must be associated with a repayment plan and the account is not removed from the repayment plan. |
The Repayment Plan Accounts grid automatically refreshes to remove the account. When finished removing accounts, click at the top of the screen containing the Repayment Plan Accounts panel.
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For information on how funds are allocated after an account is removed, refer to the Fund Allocation for Accounts Removed from a Repayment Plan section located in this guide. |
The values displayed within the grid on the Repayment Plan Accounts panel reflect the balances as of creation of the repayment plan and might not reflect up-to-date interest or other balances.
For example, a repayment plan is created on August 1st and includes an account that has a balance of $8,000, as indicated within the Repayment Plan Accounts grid. Also, on August 1st, a letter is sent to the debtor to outline the details of the repayment plan, but the debtor ignores it. When the debtor finally responds to the repayment plan letter on September 8th, the account balance displayed within the Repayment Plan Accounts grid is outdated because it has accrued interest since August 1st. Because over a month has passed since creation of the plan, the account balance should be refreshed to ensure that the information is correct before the repayment plan is activated.
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There are situations where the balances should not be updated because the debtor has already agreed to a repayment plan including the account balances listed within the Repayment Plan Accounts grid. |
To update the balances for a repayment plan, click Refresh. The Balance column of the Repayment Plan Accounts grid automatically updates to reflect the new account balances. Click at the top of the screen containing the Repayment Plan Accounts panel to retain the updated balance information.
The Allocate Funds (
) button provides users with the ability to indicate how a payment is distributed amongst recovery accounts in a repayment plan. To review and update account allocations, click 
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is only enabled within the Repayment Plan Accounts panel when a repayment plan includes more than one recovery account. |
Once clicked, the Allocate Funds pop-up window is displayed.
In the Allocate Funds window, information displays within the following grid columns:
| Column | Description | ||
| Recovery Account | Displays the account identifier associated with the recovery account included in the repayment plan. | ||
| Amount Included | Displays the balance of the recovery account based on the sum of the ledger entries. | ||
| Allocation Value | Displays the fund distribution number, monetary amount or percentage based on the selected Allocation Method. | ||
| Default Value |
Displays a check mark that indicates an account is the default account for fund allocation. The default account receives any funds that may remain after the other accounts receive their allocated funds.
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By default, when a repayment plan is created, the allocation method is set to Order, as indicated by the Allocation Method drop-down located at the top of the Allocate Funds window.
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The Order default sets the first account that was charged off to have an Allocation Value of 1. |
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The allocation method is also displayed within the read-only Repayment Plan Allocation Method field, which may be added to repayment plan panels. |
The following allocation methods are available for selection within the Allocation Method drop-down:
| Allocation Method | Description | Allocation Value | ||
| Order | If Order is selected, a payment is applied to each account in descending order starting with 1. When the first account is paid off, the payment is applied to the second account, and so on. |
Enter numerical values in sequential order (1, 2, 3, etc.) within the Allocation Value fields.
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| Percent | If Percent is selected, a percentage of the payment is applied to each account. |
Enter percentages within the Allocation Value fields.
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| Value | If Value is selected, a fixed dollar amount of the payment is applied to each account. |
Enter monetary amounts within the Allocation Value fields.
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If desired, select a new allocation method from the Allocation Method drop-down, enter the corresponding Allocation Values and ensure an account is marked as the default.
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If a new allocation method is selected from the Allocation Method drop-down, a message appears to indicate that any currently defined allocations will be removed. |
When finished defining the payment allocations for the recovery accounts within a repayment plan, click Save and Close to retain the allocations and return to the Repayment Plan Accounts panel. Click Cancel to return to the Repayment Plan Accounts window without retaining any changes.
When a new account is added to a repayment plan, the following behavior occurs depending on the allocation method selected for the repayment plan:
| Allocation Method | New Account Behavior |
| Order | When the allocation method is Order, a new account added to the repayment plan defaults to the highest order (largest numerical value in the sequence). |
| Percent | When the allocation method is Percent, a new account added to the repayment plan defaults to a 0% allocation. |
| Value | When the allocation method is Value, a new account added to the repayment plan defaults to a $0 allocation. |
Change the new account allocation method defaults by clicking on the Repayment Plan Accounts panel and updating the Allocate Funds window.
When an account is removed from a repayment plan, a shift in the fund allocation occurs according to the allocation method selected for the repayment plan.
| Allocation Method | Remaining Account Behavior |
| Order | When the allocation method is Order and an account is removed, the accounts shift their order down by one. For example, if the account with allocation value of 1 is removed from the repayment plan, the account with the allocation value of 2 becomes allocation value 1. |
| Percent | When the allocation method is Percent, the removed account’s allocation percentage is added to the account marked default. For example, if there are three accounts, each with 33.3%, and the user removes one account, two accounts remain: one with an allocation of 67.6% and the other with an allocation of 33.3%. |
| Value | When the allocation method is Value, the removed account’s allocation value is added to the account marked default. For example, if a payment of $450 is distributed as $150 to three accounts and an account is deleted, two accounts remain: one account with an allocation of $300 and the other with an allocation of $150. |
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An account marked as the default fund allocation account cannot be removed from a repayment plan. If a user tries to remove a default account from a repayment plan, an error is received indicating that a new default account must be identified on the Allocate Funds window prior to removing the account. |
Each time an update is made to an account in the Repayment Plan Accounts panel, the following fields are automatically calculated based on the total balance of all recovery accounts associated with the repayment plan, as well as the amount or total percent included in the repayment plan:
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Based on the value of the INCLUDE_NON_REIMBURSABLE_IN_BALANCE field set by the system administrator in the Recovery Settings tab of the Recovery page in System Management, Non-Reimbursable Expenses and Non-Reimbursable Other may be included in the following calculations. For more information on the INCLUDE_NON_REIMBURSABLE_IN_BALANCE field, please see the Recovery topic in the Administrator guide. |
| Field | Calculation | ||
| Is Settlement |
This field is calculated based on the total for the Amount column in the Repayment Plan Accounts panel as well as the total for the Amount to Include column. If these values are different, Is Settlement is set to true for the repayment plan. If these values are the same, Is Settlement is set to false. |
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| Discount Amount | This field is calculated based on the total for the Amount column in the Repayment Plan Accounts panel minus the total of the Amount to Include column (Total Amount - Total Amount To Include). | ||
| Discount Percent |
This field is calculated as 100 minus the value that appears in the total for the % to Include column (100 - Total % To Include).
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