Process Group/Policy Details
Subject: Accounts Receivable
Process Group: Payment Plan
Title of Policy: AR_Payment Plan
Effective Date: 07/01/2014
Approved/Revision Date: 07/01/2014
Approved by: State Controller
Process Group Description:
Payment Plan
The payment plan process group includes the instructions for setting up payment schedules for customers who cannot meet their obligations before the due date and have agreed to an extended payment plan to repay their debts and in situations where a receivable is past due. After a department and customer agree upon a payment plan, any additional interest, late fees, or other finance charges will be suppressed; however, a department may apply these fees manually if necessary. A department cannot set up a payment plan for summary receivables. Additionally, a payment plan cannot be established until the receivable has been processed and accepted in CORE. All payment plan activity is initiated and updated through table entry in CORE.
Rationale or background to policy:
CORE provides a variety of functionality related to the payment plan options related to open receivables. In order to ensure that the functionality is properly and consistently applied, policy is required.
Policy Statement:
AR.PO.04 AR_Billing
A department has the option of establishing payment plans related to open receivables when customers cannot repay their debts through one single payment. If a customer becomes past due on a payment plan, Central Collections rules apply, and Central Collections may agree with the customer on a payment plan.
Procedures:
AR.PR.05.1 AR_ Establish Payment Plan
There are several tables in CORE related to establishing and tracking payment plans. The main entry point for creating a payment plan is the PSCHD table. Within this table, payment plans may be scheduled based on dollar amounts or a time period. Either method is acceptable depending on the nature of the payment plan being established. Once the department has populated all required fields, the system will automatically create a payment plan schedule showing the dues dates and dollar amounts of the scheduled payments. It will also display which payments have been collected and when they were received. This allows the department the ability to see the current status of the received payments and the payments that are still owed to the state. Within the PSCHD table, the department can change the “status” field at anytime. When the entry in the status field is changed, the PPPT table is updated so that the appropriate notification is sent to the customer.
The PPPT table is used to view and query payment plan notices and also is used to send notifications to customers about the status of their payment plan. Within the PPPT table, a department can also reprint any payment plan notifications that are needed. The activity in the PPPT table feeds to the PPPHS table, which displays the history of each payment plan notification that has been printed.