Plan Type Setup

Navigate: Closed Tax > Accounts Receivable > Payment Plans > Plan Type Setup

Description

Use this task to create and maintain payment plans.

NOTE: The ability to apply plan payments directly to tax bills included in the plan is available. When setting up the plan select Apply plan payments to bills from the Apply Payments field and select the Payment Allocation Rule from the drop-down list in the Calculation Detail panel. When collecting the payment (via Cashiering > General > Payment Collection > Collection Payments > Type = Payment Plan) payments are applied directly to the bills. When the plan is paid off the status of the plan is Fulfilled rather than Paid because the apply payments process does not need to be used with plans that take payments against bills.

Steps

On the Set Up Plan Type screen, click New (in the Command Item bar) or Edit (in the Payment Plan Types panel).

Click Delete on a plan to delete it. Payment plan showing In Usecannot be deleted.

On the Edit Payment Plan Type screen, click Add Surplus Subcode in the Settings header to open the Add Surplus Type pop-up.
- Enter a Surplus subcode code and Surplus subcode description.
- Click Save, or click Cancel to close the pop-up without saving changes.
Make a selection from the Apply payments and Surplus subcode drop-down lists.

NOTE: The Surplus Subcode field and the next two fields are available only if the application setting Default Surplus Subcode for defaulted plan payments to bills is set. The surplus subcode you define for the application setting is displayed.
Enter the Tolerance per plan.
Select the Exclude prior plan payments, if applied to bills, from new plan calculation checkbox, if applicable.
Select the If plan defaults, plan payments in surplus become credit toward Redemption Group and end of new plans checkbox to apply any prior year payments for a now default plan to the end of a the new plan.
As applicable, select the checkbox for one or more items in the Allow partial payments on section.
Select the Defer standard penalty and interest checkbox. (Certain jurisdictions allow deferral of standard penalty and interest.)

NOTE: When this checkbox is not selected, the payment plan process manages the simple amortized calculation (equal to plan installments) and adjustment of charges, and the bill in the plan continues to accrue normal penalty/interest.

Select the Enable plan interest checkbox to enable interest on the payment plan. When selected, additional fields are displayed.
Make a selection from the Additional Fee drop-down list, and select the Enable Recurring Fee checkbox, if applicable.

NOTE: These fees are defined via Tax > Accounts Receivable > Payment Plans > Plan Fee Setup. Plan fees support recurring fees and effective dating. The Plan Start Date is used to determine the effective date of the Plan Fee record used for the startup fee.

If you select Add plan fee, also make a selection from the Plan Fee and Add fee to drop-down lists.
If you select Add miscellaneous fee, also make a selection from the Misc source drop-down list.

Select the Enable Recurring Fee checkbox to add recurring fees to the plan. Additional fields become available.

Here are examples of how a recurring fee would be applied.

Taxpayer makes plan payments according to schedule; recurring maintenance fees accrue and are charged annually when selecting the Fee Cycle of Annually.
Taxpayer pays 1st and 2nd plan installment at same time (before 1st plan installment due date), and then makes no payment until just before the 3rd plan installment due date. The 3rd plan installment amount due will include any unpaid and accrued recurring maintenance fees (2 years).
Taxpayer makes a huge initial payment and pays off the down payment and 3 of the 4 plan installments, but then pays nothing until the 4th plan installment. The 4th plan installment will include 4 years of recurring maintenance fees.
Taxpayer pays all plan installments before the recurring maintenance fee start date – no fee is charged.

If the tax bill changes, for example, for a roll correction, and you want to allow recalculation of unpaid installments, select the Allow recalculation of unpaid plan installments if tax bill charges are changed checkbox.

Select the object against which calculation will occur from the Allow Recalculation drop-down, either Unpaid Bills or All Bills.

NOTES:

This step does not apply to California payment plans.
If selected, all installments are cleared and all charges, fees, bill, etc., are recalculated and new installments/installment amounts are created.
In Cashiering upon collecting payment, for recalculating a plan with a declining balance, the installment with the oldest due date is displayed first when pulling in the bills.
In the event this is selected, a workflow event is created for the payment plan to evaluate whether the bill is in a valid payment plan and a worklist item is generated in View My Worklist. The individual responsible for reviewing the plan then evaluates it to determine if the PIN does not have a plan status of Defaulted, Void, or Fulfilled. If not in a valid plan, the plan is rejected. If in a valid plan, the plan is approved and the workflow continues.

If an early, late, or partial payment is made and you want to recalculate the payment for the plan using the payment effective date, select the Recalculate plan installments using payment effective date if early/late/partial payments are made checkbox.
Select the Reconcile final plan installment to bill(s) checkbox to reconcile the final plan installment.

NOTE: This checkbox is disabled if the Defer Standard Penalty and Interest checkbox in the Interest section is not selected. When not selected, the payment plan process manages the simple amortized calculation (equal to plan installments) and adjustment of charges and the bill in the plan continues to accrue normal penalty/interest.

In California, three types of statutorily enforced payment plans exists, and bills that go into these plans meet certain criteria.

Type of Payment Plan	Criteria
Escape Plan With Interest	Must be an Escape tax bill The escape tax bill must be for a prior fiscal year Original taxes on the Escape tax bill must be > $500 Reason for escape IS for reasons defined in R&T 4837.5(c) No payments have been made towards the bill
Escape Plan Without Interest	Must be an Escape tax bill The escape tax bill must be for a prior fiscal year Original taxes on the Escape tax bill must be > $500 Reason for escape is not for reasons defined in R&T 4837.5(c) No payments have been made towards the bill
Redemption Plan	There is not already an existing active Redemption Payment Plan for bills in that PIN The PIN does not have a defaulted (lapsed) Redemption Payment Plan within the current fiscal year Any current (current fiscal year) Secured bills are paid by Feb 1 prior to Due Date on 2nd (max) installment. Any prior (prior fiscal year) Secured bills are paid by Due Date on 2nd (max) installment.) Are Defaulted Secured (aka SPY) Have a balance due >$0 Are per TTC 106.1 “not more than 5 years delinquent”. (or any time prior to 5pm on the last business day prior to the date when the tax collector obtains the power to sell the property”. Delinquent is further defined in R&T 3351 and 3352 (d) as being after “…the close of business on June 30, or the next business day if June 30 falls on Saturday, Sunday, or a legal holiday.”)

On a Redemption Payment Plan, all the bills on a PIN that meet the criteria must be placed in the payment plan.

The Bill Selection panel is used to select the customized bill search that allows application of the selected data service and enforcement of all bills, meaning when searching for bills for the payment plan, the bills returned must meet the criteria. For Redemption Payment Plans, when the Enforce selection of bills checkbox (described below) is selected, all bills meeting the Redemption Payment Plan criteria are returned and cannot be selected. These selections apply to imported payments as well as to eGov payments.

NOTE: Although designed originally for the California market, any jurisdiction can use these settings to enforce selection of payment. Contact your Aumentum Support representative for details.

Select the Use Customized Bill Search checkbox to select the applicable data service.

Select the Data Service, such as such as Redemption Group Bills or Escape Payment Plans with Interest, etc.
Select the Enforce selection of bills checkbox to return all bills that meet the payment plan type criteria when searching for bills and to prevent selection of bills.

Click Save in the Command Item bar.

Defaults tab

In the Defaults panel, make a selection from the Plan status drop-down list.
Enter a value in days in the Void if not active within X days field to void the plan if inactive after the number of days specified.
Make a selection from the Flag drop-down list, if applicable.
Select the Inactivate flag when plan is no longer active checkbox, if applicable.

NOTE: Some jurisdictions always defer standard penalty and interest, so the Defer standard penalty and interest checkbox in the Settings tab is selected by default and cannot be edited, and no other fields are available.

Make a selection from the Plan interest calculation cycle drop-down list, and define the interest annual percentage rate in the Plan interest APR field.
Make a selection from the Non-workday interest accrual date moves to drop-down list. If you select Next Workday, for example, and the AR Functional Holiday Calendar has a holiday on Monday, then interest moves to the next workday from a Friday, meaning interest would not begin accruing again until the following Tuesday (no weekend interest, no holiday interest).

NOTE: Not all jurisdictions use this selection.
Select the Allow end of month grace day checkbox, if applicable.
Select the Plan payments are considered partial payments checkbox, if applicable.
Select the Down payment required checkbox, if applicable.
Enter the down payment grace days.
Enter the down payment percentage of the bill.

NOTE: By default, payment plan payments are accepted even for delinquent unsecured bills on a PIN. However, if you check the Other bills must be currentcheckbox, bills must be current before accepting a payment plan payment. If selected, also enter the Delinquent amount not greater than value.

IMPORTANT: Bills considered delinquent are displayed in the Total Due panel on the Info Center Tax Information screen. If the delinquent amount of the tax bill shown on that screen exceeds the Delinquent amount not greater than value that you define, Cashiering does not accept payment towards the payment plan.

Make a selection from the Amortization type drop-down list.
Make a selection from the Plan installment cycle drop-down list.
Define the number of plan installments for the calculation in the # of plan installments (excluding down payment) field.
Make a selection from the Payment allocation rule checkbox.
Depending on the rule selected, the Adjust Plan Principal by field becomes available. Define the value as appropriate, and if applicable to your jurisdiction.
The Plan allocation rule drop-down list displays if Hold plan payments in surplus was selected from the Apply payments drop-down list in the Settings tab.
The Plan fee method drop-down list displays if Add plan fee is selected from the Additional Fee drop-down list in the Additional Fees panel in the Settings tab.
Select the Drop fractional cents checkbox, if desired.
Select the Move installment to next working day if it falls on a weekend or holiday checkbox to recognize weekends and holidays for payment plan due dates.
Click Save in the Command item bar.

Click List to return to the Set Up Plan Type screen.
Click Close to end the task.

NOTE: Now that you have set up your plan fees and plan type, your next step is to edit the payment plan.

Common Actions

Plan Fee Setup – Opens the Set Up Plan Fee screen for the purposes of defining fees for the payment plan.