In this article, you will learn how to configure the software settings for handling unrecoverable claims from your debt collection partner. We explain the available options, what they do, and how they affect further processing of claims.
Overview of the contents:
Fast lane
- Go to Settings / Finance / Debt Collection.
- Select the debt collection partner whose settings you want to modify.
- Look for the setting: Handling remaining claims upon rejection.
- Choose one of the options: Always write off or Based on the debt collection partner's decision.
- Save your changes.
Settings for unrecoverable claims
In the menu under Settings / Finance / Debt Collection, you can define how the software handles remaining outstanding claims when your debt collection partner closes a case with the status Rejection (REJECTION) or Reversal (REVERSAL).
For this purpose, a new setting, Handling remaining claims upon rejection, is available. This controls whether outstanding amounts are automatically written off or whether the decision lies with the debt collection partner.
Options and their effects
The setting offers two options:
-
Always write off
- Effect: All remaining unpaid claims are automatically written off as soon as the debt collection partner marks a case as rejected or reversed.
- Recommendation: This option is ideal if you want to ensure that all unrecoverable claims are directly removed from your system.
-
Based on the debt collection partner's decision
- Effect: Remaining claims are only written off if the debt collection partner explicitly indicates this in their API response.
- Note: This option is the default for new contracts unless otherwise specified via the user interface.
Recommendation for configuration
The option Always write off is recommended as it automates and simplifies the accounting process. However, if your debt collection partner supports differentiated handling of claims, you can choose the option Based on the debt collection partner's decision for more control over the write-off process.
This setting also applies to the existing implementation of Finion Debt Collection and is considered accordingly.