Here we’ll cover posting a Payment-Type Transaction from the Financials: Transactions page. We’ll cover many facets of what is available, however depending on your business model, you may not use all the features listed or may utilize features differently. Feel free to skip sections that don’t apply, or re-purpose the functionality as you see fit.
The examples below will be based on a traditional debt collection model, where the business (agency) is collecting 3rd party debt originally owned by a company/loan office/etc. (client) that is owed by an individual (debtor).
Add Payment Basics
The Add New Transaction section of an account’s Financials > Transactions tab is where you can enter payment information. The fields here include the following:
- Date (Required): The date of the payment. It is important to note that the date entered for a transaction must be ON or AFTER the date of the claim (whether Pre or Post-Judgment) for it to calculate properly.
- Description (Required): This is the type of transaction you’d like to apply to the account. For example: Payment – Check, Payment – Cash, Payment – Credit Card, etc.
- Amount (Required): The amount ($) of the payment.
- Note (Optional): A field for other important information about the payment, for example: check number, who paid, etc.
- Collector (Optional): The collector assigned to a payment type transaction receives credit for it on certain reports. This will default to the collector assigned to the account on the Claim Details page, if one exists.
- Co-Collector (Optional): The co-debtor assigned to a payment type transaction splits credit evenly with the collector (50/50), and their earnings are shown on certain reports.
- Co-Co-Collector (Optional): The co-co-collector assigned to a payment type transaction splits credit evenly with the collector and co-collector (1/3rd each), and their earnings are shown on certain reports.
Once the necessary fields are filled out, you click the Insert Transaction button to post it to the account. Depending on what information you chose, or what is enabled on your SimplicityCollect account, you may be required to address additional information in a pop-up window before the transaction posts.
Once your new transaction information has been entered, click on the Insert Transaction button.
Convenience Fees (optional)
IF CONVENIENCE FEES ARE NOT ENABLED (SKIP TO NEXT STEP):
The system will check if there is a payment processor or QuickBooks settings enabled. Then the transaction will post to the account.
IF CONVENIENCE FEES ARE ENABLED:
The following Convenience Fee Options window will appear. You can choose to Add the fee or Cancel the fee (either choice moves on to the next step). You can also choose the amount of the fee, and if it affects the balance or not.
Convenience Fees can be set up or modified by an Administrator by going to Settings > Administrators > Convenience Fee Settings.
Payment Processor (optional)
IF A PAYMENT PROCESSOR IS NOT ENABLED (SKIP TO NEXT STEP):
The system will check if there are QuickBooks settings enabled. Then the transaction will post to the account.
IF A PAYMENT PROCESSOR IS ENABLED:
The following Process Payment window will appear. This is populated by the Payment Processor’s website, and allows the
employee to run a credit/debt card or ACH (checking account) information.
Merchant Account: In certain cases, you may want to attach multiple payment processors to your SimplicityCollect account. This will allow you new possibilities for your payments. For example, if you have different collectors –or even different offices—collecting payments, you can have certain types of payments be processed by certain companies or go to certain bank accounts. The Merchant Account option will appear as a drop-down menu where you can select from, if you have more than one linked to Simplicity.
Payment Method: This is where you can choose Credit Card or ACH (checking account). The types of cards you can take, or if ACH is allowed, is determined by your contract with your merchant/payment processor.
Save Payment Info: Saves the information that has been entered for use on future transactions.
Process Payment: If successful, it processes the charge and posts the transaction to the account. If denied, please review our document Common Payment Processing Mistakes, Questions and Errors
Skip Payment Processing: Only posts the transaction to the account and does NOT charge the card or ACH information.
Cancel: Cancels the transaction.
NOTE: Payment processors can be linked with your SimplicityCollect account by contacting support staff.
Quickbooks Linking (optional)
IF QUICKBOOKS IS NOT ENABLED (SKIP TO NEXT STEP):
Then the transaction will post to the account.
IF QUICKBOOKS IS ENABLED:
If this is a payment type transaction, and a QuickBooks Account has not been selected for this account yet, this pop-up will appear. This will display the QuickBooks Accounts you can send a copy of the payment amount to.
Clicking Submit Update will post the transaction to the account and transfer the Amount to QuickBooks.
Clicking Cancel Update will post the transaction to the account and not transfer the Amount to QuickBooks.
QuickBooks can be set up by an Administrator or a user with proper permissions by going to Settings > Financial Settings > QuickBooks Admin.
Final Posting of Payment
Once the Payment-Type Transaction has posted, you will see it populate in two places:
1) You will see the payment added to the Pre-Judgment or Post-Judgment Account Summary, in the Payments field at the top right of the screen. This affects the Balance Due field as well.
2) At the bottom below the Add New Transaction area. You’ll see:
- Transaction ID (this populates automatically if you have a Payment Processor)
After the Amount column, you see a group of four other columns: Interest, Cost, Att. Fee and Principal. These are the Allocations. Allocations are categories that the debtor owes money in, and they show how the payment applies to each individually:
Each individual Allocation category is paid off 100% in full before the next one receives any money. They are paid off in the order it is displayed (the order can be changed on the account in Financials > Settings/Judgment or for the Client in Settings > Clients). We’ll use the example pictures below to illustrate this, with explanations as to what is being allocated.
- Interest is to be paid first. As of the date posted, only $11.10 of interest has accumulated, so this is taken from the $100 payment.
- Costs are to be paid second. As of the date posted, $5.00 in costs has been added on the account (see previous image for the Cost-Type Transaction labeled “File Complaint”).
- Fees (in this case, just Att. Fees) are to be paid third. As of the date posted, $7.00 in fees have been added on the account (see
previous image for the Fee-Type Transaction labeled “Sheriff Fee”).
- Principal is to be paid fourth. Only $76.90 of the payment is left after paying interest, costs and fees, so this remaining amount is applied to the principal of $1,000.00.
If a particular allocation type has no money owed to it (for example, an account may have no costs or fees to recoup), an incoming payment will automatically move on to the next allocation type in the list until the account is paid in full.
The next group of columns are the Disbursements. Disbursements refer to who is promised what portion of the money collected. These are often entities such as the Agency (your business) and the Client (original party the debt is owed to), but may also include an Attorney, when working with legal-based collections seeking a judgment.
Advanced refers to money the agency or client may have paid out of pocket, or “advanced”, during the course of seeking restitution. Funds allocated to Costs are often disbursed to Advanced, indicating a particular party is being paid back what they spent. Example Costs that may be Advanced back can include: Court Costs, Filing Fees, Postage Fees, Notary Fees, and so on.
Each individual Disbursement is based on the settings in Financials > Settings/Judgment (which can be unique to the account if modified here, or tied to Settings > Clients if they apply to multiple accounts). These are seen in the four (4) identical boxes to the right.
Using the examples, we’ll break down the payment received above:
- Interest is disbursed 100% to the Agency ($11.10)
- Costs are disbursed 100% to Advanced ($5.00)
- Fees (in this case, just Att. Fees) are disbursed 100% to the Agency ($7.00)
- Principal is disbursed 25/75%
- Total allocated: $19.22 (Agency’s 25%) + $57.68 (Client’s 75%) = $76.90
- Attorney is $0.00 because no allocations disbursed to it.
- Advanced is $5.00 because Costs disbursed to it.
- Agency is $37.32 because Interest ($11.10), Fees ($7.00) and Principal
($19.22) disbursed to it.
- Client is $57.68 because Principal disbursed to it.
Post – Dated Transactions
Posting future payment transactions on the Financials screen can be an option rather than using a payment plan. When entering a future payment date, the payment allocations and balance will not update until the date occurs. If a payment processor is enabled, select “Save Payment Info” as usual, and the credit card/ACH payment will run only until the date entered.