Payment Spread Selection

Payment Spread Method

Rule

In order

• The system applies payments to the accounts in the selected order (for example, current balance, original balance, customer priority).

• When a party pays an account to satisfaction, the system applies any remaining payment amount to the next account in the order until there are no more payments or all accounts are paid.

• If you have permissions to select a payment spread, you can also specify the order of the accounts manually.

Even

• The system splits payments evenly across all selected accounts.

• When a party pays an account to satisfaction, the system applies any remaining payment amount evenly to the remaining accounts.

Proportional

The system splits payments proportionally across all selected accounts based on the projected current balance on the date of the payment. In theory, if you set the arrangement to satisfy all accounts, all selected accounts are paid to satisfaction on the same payment.

Priority

• The system applies payments toward the selected accounts based on the priority of the customer.

• If multiple accounts belong to customers with the same priority, the system applies payments proportionally to the projected current balance on the date of the payment.

Fee

• The system applies payments toward the selected accounts in the order of the payment yielding the highest amount of fee for the agency.

• For each payment, the system calculates the projected fee using the fee schedules for the accounts for the full amount of the payment. The system sorts accounts by that projected fee in descending order and spreads the payment over those accounts in that order.