Invoice Processing

In this session it tells you about the Bricknode Lending's Invoice processing. The main goal with invoices is to notify the borrowers that they need to pay back the loan. If the borrower doesn’t pay back, the invoice will go to another status and send out a pdf and email that notify them again that they need to pay back.

In this session it tells you how the Invoice processing works and if they not pay the invoice which statuses it goes. The invoice can go to different statuses and get new expiration dates and another date that tells the system when it should go to next status. Those dates are based on global settings and the previous date in the invoice flow. The picture below you can find which global setting that is changing which date. The picture will probably help you to understand while you are reading the upcoming chapters.

Creating Invoice

Each month Bricknode Lending creates an invoice per each active Borrower Loan Account. The specific day of the month is depending on the Account Term’s capitalization day and the global setting Invoice Days. The capitalization day is that day the borrower is supposed to pay to the loan with an invoice and the invoice is being created X days before the capitalization day where X is the value of the global setting Invoice Days.

WARNING: Changing the global setting InvoiceDays should not be changed to a day that makes it jump over an Invoice that should have been created on one month.

The following things happen on the creation of an invoice:

• Set to status Created.
• Set Expiration Date and Reminder date.
• Create preliminary invoice items.
• Create pdf and email.
• Set to status Sent.

Expiration Date and Reminder Date

Expiration Date is the day when the invoice goes to status Finalize and Reminder Date is that date it goes to Reminder status if the invoice hasn’t been paid. Expiration Date is same date as the account term’s capitalization date.

Reminder Date is set to X days after Expiration Date where X is InvoicePaymentAcceptanceSpan as a global setting. With other words InvoicePaymentAcceptanceSpan tells how many extra days the invoice stays in Finalize status before it goes to status Reminder.

Invoice Items

An unfinalized invoice is a preliminary invoice that tells the borrower how much he/she is going to pay at the expiration date and it describes where the money goes, interest, fee and amortization for an example.

The system calculates the borrower’s loan account transactions and see how much the borrower is in debt. For each type of transaction that is invoice able it creates one invoice item; one invoice item is summarized of one same kind of transaction.

On annuity loans the system creates invoice items until it reached the account’s max amount on invoice. Every transaction type has a priority number that the system goes after during creating of invoice items from the transaction types. If the system has been used all the transactions and haven’t reached the limit, it will create an invoice item with amortization to fill up the invoice max amount.

On Straight loans the system creates invoice items until it has been using all the transaction types and last it adds an invoice item with amortization with a fixed amount that is set on the account term.

Notice: If the borrower has not paid the last invoice, that has probably the status reminder or debt collection (inkasso). That invoice has invoice items that has not been paid and that leads the account has transactions that has not been compensate/balanced. The system will take care of that during the creation of invoices and calculates/compiles and reduce with the current active invoice’s invoice items. Otherwise the new invoice will include the previous invoice’s interest and the new interest and if the borrower pays both invoices the borrower will pay more interest to the account than is necessary.

During this period, it’s still some days until all the daily interest and daily fees has been added to the account so the system calculates those missing days and adding those as invoice items with type the following types:

• CalculatedInterest
• CalculatedFees

Finalize Invoice

On the invoice’s Expiration Date, the system does the follow things:

• Set status to Finalized.
• Creates new invoice items and sets the old invoice times to inactive.
• Create pdf and email

Invoice Items

This day the borrower’s loan account has been capitalized. That means the system has converted the accrued interest into interest and accrued fee into fee.

The system will set the current invoice items that was created preliminary for the invoice to inactive and create new invoice items that will reflect the capitalized transactions.

Notice: Between Unfinalized and Finalize it can happen that a transaction has been added, like Reminder fee or Debt Collection fee, that leads to difference between the unfinalized invoice and the finalized invoice. The finalized will have that added transaction as an invoice item and amortization will be reduce if it the loan is annuity. If its straight, it will increase the invoice’s total amount and probably the invoice won’t be full payed out.

Next Step

With status Finalized means that one of the next coming night job, ApplyReceivedPaymentsToLoanAccounts, will take care of this invoice.

It will check on the borrower’s transaction account and see if it has any transaction with the invoice OCR-number. If it finds the transaction the system will take those money and pay the invoice’s invoice items and create a positive transaction to the borrower’s loan account. If the transaction account does not have money or not have enough money to pay the invoice, it will not get the status paid until it has been paid. If it has not been paid, it will go to the next stage for the invoice that is reminder.

Reminder

If the invoice has not been paid until the invoice’s reminder date get reached, the invoice will go to status reminder. The following things will happen:

• Create reminder pdf and email.
• Create reminder fee transaction to the borrower’s loan account.
• Change status to Reminder.
• Create a new expiration Date and a new next status change date.

Expiration Date and Status Change Date

The new dates that will be created is the following:

• Reminder Expiration Date
• Debt Collection Date

Reminder Expiration Date is the new expiration date for the borrower and it is showed in the PDF. The date is set to X days after the invoice’s Reminder Date where X is ReminderDays in global settings. With other words ReminderDays tells how many days the borrower has before it expires.  

Debt Collection Date is the new change status date. If the customer doesn’t pay the reminder invoice before this date the invoice will go to the next status, Debt Collection (inkasso). This date is set X days after invoice’s Reminder Expiration Date where X is ReminderPaymentAcceptanceSpan in global settings. With other words ReminderPaymentAcceptanceSpan tells how many days extra the invoice stays in Reminder status before it goes to status Kfm.

Debt Collection

If the invoice has not been paid until the invoice’s debt collection date get reached, the invoice will go to status debt collection (Inkasso). The following things will happen:

• Create debt collection pdf and email.
• Send the pdf to Ekopost (External Service) that will send the pdf as paper letter.
• Create Debt Collection Fee (Inkasso Fee) transaction to the borrower’s loan account.
• Change status to Debt Collection (Inkasso)
• Create a new Expiration Date and a new next Status Change Date

Expiration Date and Status Change Date

The new dates that will be created is the following:

• Debt Collection Expiration Date
• Kfm Date

Debt Collection Expiration Date is the new expiration date for the borrower and it is showed in the PDF. The date is set to X days after the invoice’s debt collection date where X DebtCollectionDays. With other words DebtCollectionDays tells how many days the borrower has to pay the invoice.

Kfm Date is the new change status date. If the customer doesn’t pay the debt collection invoice before this date got reached the invoice will go to the next status, Kfm. This date is set to X days after the invoice’s debt collection expiration where X is DebtCollectionPaymentAcceptanceSpan in global settings. With other words DebtCollectionPaymentAcceptanceSpan tells how many extra days the invoice stays in debt collection before it goes to status Kfm.