Section 11

Payment Processing
Calculation and
Application

Objectives

Upon completion of this section, you will be able to:

Demonstrate how the requested minimum payment is calculated

Identify fields used to override the minimum payment calculation
Define the criteria for payment consolidation
Distinguish between prepayments and skip payments
Define key terms used to describe payments
Interpret the function of the A/R and P/L payment hierarchies
Describe three payment application methods
State how the payment application level is selected
Explain how a payment may be “held”
Describe how a payment may be reversed
CMS 8.0

PAYMENT PROCESSING OVERVIEW

The payment processing controls that set up in your control records will affect
how CMS:
Calculates payments
Consolidates payments
Distributes payments to credit plans
Handles pre-payments and skip payments
Applies payments to accounts with multiple credit plans
Applies underpayments and overpayments
Holds large payments
Retains payment history
Applies payment reversals

Section 11 - 2
 Payment Processing

PAYMENT CALCULATION
CMS includes several fields in the control records that work together to calculate
the minimum amount billed to a customer each cycle. The PAYMENT TYPE on the
Credit Plan Master (ARMC01) and the PYMT TYP on the Credit Plan Segment
(ARMA05) determine the specific controls that CMS uses to calculate minimum
payments.
Depending on the payment type chosen for a particular credit plan, CMS may use
information from other control records to calculate the minimum payment. Some
payment types require that you make entries in the REPAYMENT TABLE on the
Credit Plan Master, while others do not.

ARMC PAGE 01

ARMC ( ) USER DEFINED TITLE PAGE 01 08/26/1999

CREDIT PLAN MASTER 10:16:34
ORG 100 PLAN NBR 10002 DATE LAST MAINT 06/28/1999
DESCRIPTION ( RETAIL PURCHASE PLAN )
PLAN TYPE ( R ) REQUIRED DOWN PMT ( A ) ( 0000000 )
RATE TBL OCCUR ( 01 ) MULTIPLE SALES ( Y )
BEGINNING DATE ( ) ENDING DATE ( )
BALANCE TRANSFER TYPE ( N ) INTEREST TABLE OVRRDE ( 001 )
GRACE DAY BALANCE ( Y ) ITO EXP ( M 001 ) ( )
MIN SALE ( 000000000 ) MAX SALE ( 000000000 )
POSTING INDICATOR ( 0 )
DEFER INT ( 000 ) ( 0 ) ( ) ( 0 ) PLAN ID ( 654 )
DEFER INS ( 000 ) ( 0 ) ( ) ( 0 ) RECORD COUNT IND ( 05 )

DFR BILL ( 000 ) ( 0 ) ( ) PRODUCT CODE ( 65498 )

DEFER PMT ( 000 ) ( 0 ) ( )
CANCEL F / LVL / LTR / PLAN /METHOD ( 0 ) ( 0 ) ( ) ( 00000 ) ( 0 )
EXPR / LTR / PLAN / METHOD ( 0 ) ( ) ( 00000 ) ( 0 )
USER CD 1 ( 000 ) USER CD 2 ( 000 ) USER CD 3 ( 000 )
USER CD 4 ( 00000 ) USER CD 5 ( 00000 ) USER CD 6 ( 00000 )
PAYMENT OPTIONS - PAYMENT TYPE ( C )
CONSOLIDATED PAYMENT ( N )
CONSOLIDATED STATEMENT ( N ) CONTROLLING PLAN ( 00000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

RELATED FIELDS

PAYMENT TYPE Code that specifies how the minimum billed each cycle is
calculated.

Section 11 - 3
CMS 8.0

The following tables list payment types that are available in CMS and indicate the
information the system uses to calculate payments for each payment type.
The first table lists those payment types that use a Repayment Table on the Credit
Plan Master.

Type Does this… Using…

C Calculates a new minimum payment Repayment Table, CURR BALANCE

each cycle based on the repayment table (ARMA), BILL EVEN AMOUNTS
and the current plan balance. (ARML), MIN PYMT (ARMY)

D Calculates a new minimum payment for Repayment Table, CURR BALANCE

any cycle in which the posting run posts (ARMA), BILL EVEN AMOUNTS
a debit transaction (Logic Module 01) (ARML), MIN PYMT (ARMY)
initiated by the customer. The payment
is based on the repayment table and the
current balance.

F Calculates a fixed payment amount Repayment Table, CURR BALANCE

during the first statement cycle based on (ARMA), FIX PAYMENTAMT (ARMA)
the repayment table and the current
balance. The fixed payment amount
remains in effect for the life of the credit
plan segment.

G Calculates a new minimum payment Repayment Table, CURR BALANCE

each cycle based on a fixed payment (ARMA), FIX PAYMENTAMT (ARMA),
amount as computed under payment type calculated interest each cycle,
F, plus calculated interest and insurance calculated insurance premiums each
premiums. The fixed payment amount cycle
remains in effect for the life of the credit
plan segment, although the interest and
insurance amounts may change each
cycle.

H Calculates a new minimum payment for Repayment Table, PLAN HIGH BAL
any cycle in which a new highest plan (ARMA), BILL EVEN AMOUNTS
balance exists. The payment is based on (ARML), MIN PYMT (ARMY)
the repayment table and the highest plan
balance for the life of the credit plan
segment.

Section 11 - 4
 Payment Processing

Type Does this… Using…

P Calculates a new minimum payment Repayment Table, CURR BALANCE
each cycle based on a fixed payment (ARMA), FIX PAYMENTAMT (ARMA),
amount as computed under payment type calculated interest each cycle
F, plus interest accrued this cycle. The
fixed payment amount remains in effect
for the life of the credit plan segment,
although the interest amount may change
each cycle.

Q Calculates a new minimum payment for Repayment Table, HI PRIN BAL

any cycle in which a new highest (ARMA), BILL EVEN AMOUNTS
principal balance exists. The payment (ARML), MIN PYMT (ARMY)
amount is based on the repayment table
and the highest principal balance for the
life of the credit plan segment. This
payment type excludes all billed- not-
paid components in the calculation.

R Calculates a new minimum payment for Repayment Table, HI REVL BAL

any cycle in which a new highest (ARMA), BILL EVEN AMOUNTS
revolving balance exists. The payment (ARML), MIN PYMT (ARMY)
amount is based on the repayment table
and the highest revolving balance for the
life of the credit plan segment.

S Calculates a new minimum payment for Repayment Table, PMT HIGH BAL
any cycle in which a new highest cycle (ARMA), BILL EVEN AMOUNTS
balance exists. The payment amount is (ARML), MIN PYMT (ARMY)
based on the repayment table and the
highest statement balance for the life of
the credit plan segment.

T Calculates a new minimum payment Repayment Table, CURR BALANCE

each cycle based on the percentage in the (ARMA), BILL EVEN AMOUNTS
first entry of the repayment table and the (ARML), MIN PYMT (ARMY)
current plan segment balance.

U Calculates a new minimum payment Repayment Table, user exit

each cycle based on the repayment table (copybook AR23WS)
and a user-defined calculation.

Section 11 - 5
CMS 8.0

Type Does this… Using…

W Calculates a new minimum payment Repayment Table, BAL LAST PURCH
each cycle based on the percentage in the (ARMA), BILL EVEN AMOUNTS
first entry of the repayment table and the (ARML), MIN PYMT (ARMY)
plan balance at the time of the last
purchase.

The second table lists those payment types that do not use a Repayment Table.

Type Does this… Using…

A Bills the fixed payment amount each FIX PAYMENT AMT (ARMA)
cycle, regardless of the outstanding
balance on the account. CMS bills the
fixed payment amount even if it is
greater than the account balance. Use
this value for layaway accounts only
(TYPE OF ACCOUNT on ARML01 is
L).

B Calculates a new minimum payment CURR BALANCE (ARMA), calculated

each cycle equal to the sum of the insurance premium if applicable
current plan balance plus calculated
insurance.

E Calculates a fixed payment amount equal INITIAL PRINCIPAL (ARMA),

to the sum of the loan balance PRECOMPUTED INTEREST, INSURANCE,
and USER FEE 1-6 (ARMA), ORIGINAL
components (principal, interest,
TERM (ARMA)
insurance, user fees 1-6) divided by the
loan term. This payment type is allowed
for installment loan credit plans only.

I Bills only the current interest each cycle. Calculated interest each cycle.

L Bills a payment amount from the loan Loan Repayment Schedule (ARMA)
schedule. This payment type is allowed
for installment loan credit plans only.

M Calculate the payment by dividing the (ARMA)

INITIAL LOAN AMOUNT
initial loan amount by the initial loan ORIGINAL TERM (ARMA)
term. This value is valid for loan credit
plans only.

Section 11 - 6
 Payment Processing

Type Does this… Using…

X Bills a temporary fixed payment amount FIX PAYMENT AMT (ARMA)
each cycle until the posting run posts a
sale transaction (Logic Module 01). The
credit plan segment reverts to the
payment type assigned to the Credit Plan
Master. This payment type is valid on
the credit plan segment only, not on the
Credit Plan Master.

ARMC PAGE 02

ARMC ( ) USER DEFINED TITLE PAGE 02 08/26/1999

REPAYMENT TABLE 10:17:49

MAX BALANCE PAYMENT A/P

01 ( 00999999999999999 ) ( 000000050 ) ( A )
02 ( 00999999999999999 ) ( 000000000 ) ( A )
03 ( 00999999999999999 ) ( 000000000 ) ( A )
04 ( 00999999999999999 ) ( 000000000 ) ( A )
05 ( 00999999999999999 ) ( 000000000 ) ( A )
06 ( 00999999999999999 ) ( 000000000 ) ( A )
07 ( 00999999999999999 ) ( 000000000 ) ( A )
08 ( 00999999999999999 ) ( 000000000 ) ( A )
09 ( 00999999999999999 ) ( 000000000 ) ( A )
10 ( 00999999999999999 ) ( 000000000 ) ( A )

CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7

PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

RELATED FIELDS

MAX BALANCE Account balance that CMS uses to determine the minimum
payment. Each balance defines a range numbered from 01 to 20.
If the balance of an account falls within a range, CMS uses the
corresponding PAYMENT and A/P fields to calculate the minimum
payment.

PAYMENT Fixed amount or a percentage of the credit plan balance that

determines the payment amount for credit plans with a balance
within the specified range. The A/P field determines whether this
field is an amount or a percentage.

Section 11 - 7
CMS 8.0

Enter a fixed amount in whole monetary units (no subunits). Enter

a percentage based on the percentage NOD.

A/P Code that determines whether the PAYMENT field is a percentage

or an amount.

 ARMC03 is a continuation of ARMC02. The field descriptions

are the same.

BILLING EVEN AMOUNTS

If you choose, you can have CMS round off payment calculations and bill
customer only in even amounts. The BILL EVEN AMOUNTS field on ARML14 exists
for this purpose.

ARML PAGE 14

ARML ( ) ** USER DEFINED TITLE ** PAGE 14 11/13/2001

LOGO RECORD 13:30:20
ORGANIZATION 100 LOGO 101
PROCESSING CONTROL OPTIONS (CONT.) BILL THRESH ( 000001000 )
MIN REAGE MONTHS ( 12 ) REAGE PERIOD ( 036 ) REAGE PERIOD LIMIT ( 2 )
PROC CONTROL LEVEL ( O ) PRE-PAY ALLOWED ( 2 ) PRE-PAY MONTHS ( 03 )
BILL EVEN AMOUNTS ( Y ) BILL OVER LIMIT ( N )
SKIP ALLOWED ( Y ) SKIP SELECTED ( N ) SKIP EXPIRES ( )
REAGED AT ( C ) ( 030 ) REAGE FREQ ( 24 ) REAGE CD LVL ( 4 )
FLEX BILL MONTHS ( 00 ) PREPAY ZERO ( 1 ) PLAN PAYMENT ( F )
PAYMENT VARIANCE ( A ) ( 000000500 ) DELINQUENCY INTEREST LEVEL ( 4 )
PAYOFF VARIANCE A ( 000001000 ) P ( 0000000 ) MAX ( 000000000 )
QUAL PMT A ( 000002000 ) P ( 9000000 ) NOM BILL OVERLIMIT ( 1 )
QUAL PAYMENT RESET % ( 090 ) C/O CREDIT APPLICATION F/L/B ( F )
PAYMENT APPLICATION LVL ( P ) MIN DELQ AMT ( 00000000000005000 )
UNDER PAYMENT 1-4 F/L OVER PAYMENT 1-4 F/L
REVOLVING ( 1 ) ( F ) REVOLVING ( 1 ) ( F )
DEFERRED INT-F/C ( 1 ) ( F ) DEFERRED INT-F/C ( 1 ) ( F )
DEFERRED PAYMENT ( 1 ) ( F ) DEFERRED PAYMENT ( 1 ) ( F )
DEFERRED BILLING ( 1 ) ( F ) DEFERRED BILLING ( 1 ) ( F )
OTB: CR BAL ( 0 ) DISP ( 0 ) LOAN AMT ( 1 )
AUTH DAYS - APP ( 10 ) AUTH DAYS - DECL ( 15 ) AUTH VARIANCE ( 1500000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMS PF3=ARMO PF4=ARMG PF5=ARMC PF6=INQUIRY

Section 11 - 8
 Payment Processing

RELATED FIELDS

BILL EVEN Code that indicates how CMS rounds off calculated payments to
AMOUNTS determine the amount to bill. The values are:
N = Do not round; bill the exact amount (Default)
Y = Round up to next whole monetary unit
F = Round up to the next increment of five
monetary units
T = Round up to the next increment of ten
monetary units.

PAYMENT CALCULATION OVERRIDES (FIXED PAYMENTS)

When you have to make special payment arrangements with a customer, you can
override the minimum payment calculation either at the account level or at the
credit plan segment level.

ACCOUNT LEVEL OVERRIDE

ARMB PAGE 04

ARMB ( ) USER DEFINED TITLE PAGE 04 11/15/1999

ACCOUNT BASE SEGMENT 14:15:00
ORGANIZATION 100 LOGO 152 ACCOUNT 0004441501001520003

RATE VARIANCES CURRENT PENDING EFFECTIVE

1 + 0000000 ( + 0000000 ) ( )
2 + 0000000 ( + 0000000 )
3 + 0000000 ( + 0000000 )
4 + 0000000 ( + 0000000 )
5 + 0000000 ( + 0000000 )
6 + 0000000 ( + 0000000 )
7 + 0000000 ( + 0000000 )
8 + 0000000 ( + 0000000 )
9 + 0000000 ( + 0000000 )
10 + 0000000 ( + 0000000 )
11 + 0000000 ( + 0000000 )
12 + 0000000 ( + 0000000 )

CHARGED-OFF ACCRUED INTEREST ( 0 )

DEFAULT CASH / RETAIL PLAN ( 00005 ) ( 00002 )
CONTROLLING PLAN OVERRIDE ( X )
FIXED PAYMENT AMOUNT/PERCENT ( 00000002500 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARIB PF3=ARIQ PF4=ARMN PF5=ARME PF6=INQUIRY

Section 11 - 9
CMS 8.0

RELATED FIELDS

CONTROLLING Flag that indicates whether CMS overrides the controlling Credit
PLAN OVERRIDE Plan Master record and assesses a fixed payment or a percentage
of credit limit payment for this account. The values are:
F = A fixed payment is in effect for this account
P = A percentage of credit limit payment is in
effect for this account
X = A fixed payment is in effect for this account
until purchase activity occurs (a Logic
module 01 purchase or a Logic module 28
advance check request)
Space = No override is in effect. (Default)

FIXED PAYMENT Fixed payment amount or percentage of the credit limit that CMS
AMOUNT/ uses to calculate the payment amount if the CONTROLLING PLAN
PERCENT OVERRIDE is F, P or X.

Examples:
For $25.00, enter 00000002500
For 12.375%, enter 00000012375

 CMS does not consolidate individual plan segment balances to

calculate the minimum payment if the FIXED PAYMENT
AMOUNT/PERCENT is greater than zero.

 CMS does not apply the controlling plan override option to the
account if the PAYMENT TYPE is B on the Credit Plan Master
record (ARMC01).

If you enter a fixed amount that is less than the minimum payment defined on the
Account Control Table (ARMY02), CMS bills the minimum payment amount.
CMS always bills the greater of the two amounts (unless the account balance is
less than either amount, in which case CMS bills the account balance).

Section 11 - 10
 Payment Processing

MINIMUM PAYMENT

ARMY PAGE 02

ARMY ( ) ** USER DEFINED TITLE ** PAGE 02 11/15/2001

ACCOUNT CONTROL TABLE 06:36:18
ORGANIZATION 000 LOGO 000 TABLE 001 LAST MAINT 09/06/2001

PMT DUE DAYS ( 99 ) PMT DUE DATE ( 00 ) GRACE DAY BAL ( D )

MINIMUM INTEREST ( 000000050 ) GRACE DAYS ( 25 )
MIN PYMT: AMT ( 000000015 ) PERCENT ( 0100000 ) IND ( 4 )
MIN INT WAIVE LVL ( A ) MAXIMUM AMOUNT ( 000000025 )
MAXIMUM BAL ( 00000000000001001 )

CASH LIMIT FLAG ( P ) % OR AMT ( 00000000000750000 ) CONS PMT PLAN ( 00000 )

LOAN LIMIT FLAG ( P ) % OR AMT ( 00000000000500000 ) CONS INS PLAN ( 00000 )
FEE DISCL IND ( 1 ) CASH PLAN ( 10001 )
FEE DISCL CYCLE ( 2 ) RETAIL PLAN ( 10002 )

CO ACCR INTEREST ( 1 ) SECURITY % ( 100 )

VAR RATE DISCL DAYS ( 060 )

IMMED DORMANT ACCOUNT RATIFICATION ( 1 )
ITO INTEREST OPTIONS ( 1 )

CURRENCY 840 NOD 2 PER ITEM NOD 3 PERCENTAGE NOD 7

PF1=ARMU PF2=ARMF PF3=ARMR PF4=ARMI PF5=ARVM PF6=INQUIRY

RELATED FIELDS

MIN PYMT: Three-part field that determines the minimum payment amount
AMT/PERCENT/ that is billed. The first part (AMT) is the minimum amount to be
IND billed in whole monetary units. If the indicator (IND) is 0, this
field must be zero.

The second part (PERCENT) is a percentage of the balance. If the

indicator (IND) is 0, this field must be zero.

The third part (IND) indicates how CMS calculates the minimum
payment. The values are:
0 = Not used (Default)
1 = Calculate the payment based on an amount
2 = Calculate the payment based on a percentage
3 = Calculate the payment based on the lower of
the two amounts
4 = Calculate the payment based on the greater of
the two amounts.

Section 11 - 11
CMS 8.0

CREDIT PLAN SEGMENT LEVEL OVERRIDE

ARMA PAGE 05

ARMA ( ) USER DEFINED TITLE PAGE 05 11/15/1999

CREDIT PLAN SEGMENTS 14:25:00
ORG 100 ACCT 0005441401001401027 PLAN 00801 STRAIGHT LINE P/I 1 CASE 1
OPEN DATE 05/22/2000 DATE LAST MAINT 00/00/0000
PAID OUT DATE 00/00/0000 AMT LST PYMT .00
ADD ON FLAG ( I ) LST PYMT DATE 00/00/0000
PLAN TYPE / RTOI L / 01 PMT LST REQ 20.00
PCT LEVEL / ID L / VXM CONS: STMT/PYMT FLAG Y N
RATE CHG EFF DATE 00/00/0000 FIX PAYMENT AMT ( 00000000000 )
DISCLOSURE DAYS 000 PMT HIGH BAL ( 00000000001000000 )
LBT INT TBL/RIT USED 001 / 000 PLAN HIGH BAL ( 00000000001000000 )
TRANSFER FROM LOGO 000 PYMT TYP/MNT DT ( T ) 00/00/0000
RATIFICATION LEVEL CTD PAYMENTS .00
RATF METHOD / INT TBL / 000 PS TOTAL DUE 20.00
INT ACCRUAL METHOD D ACCRUED INT .0000
ITO STATUS/OVERRIDE / ( 000 ) AGGR DYS/AMT 23 / .00
ITO EXPIRATION DATE ( 00000000 ) REF # 00054414010014010270002
INT STATUS F
BAL XFR MO REM/EXP 00 PER DIEM .0000
GRACE DAY FLAG Y XFR PLAN 00000 000 / 00/00/0000
CONSLDTD PYMT PLAN 00801 PRODUCT CODE ( )
ORG / STORE 100 / 000000001 PLAN ID
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARIQ PF3=ARIB PF4=ARQB PF5=ARMB PF6=INQUIRY

RELATED FIELDS

FIX PAYMENT Amount of the fixed payment defined for this Credit Plan
AMT Segment record. This field is used by CMS if the PYMT TYP is A,
F, D, H, P, T, or X.

PYMT TYP/MNT Two-part field that indicates the payment type in effect for the
DT Credit Plan Segment record and the date on which the payment
type was last changed. The values are A, B, C, D, E, F, G, H, I, L,
P, Q, R, S, T, U, W and X.

Section 11 - 12
 Payment Processing

CONSOLIDATED PAYMENTS
In CMS a customer can have multiple revolving credit plans controlled by the
same Credit Plan Master record. Using the CONSOLIDATED PAYMENT flag on the
Credit Plan Master (ARMC01) you can designate that similar credit plan
segments on an account will be consolidated for the purpose of calculating the
customer's minimum monthly payment.
The CONS PMT PLAN field on the Account Control table (ARMY) can contain the
number of the Credit Plan Master that stores the Repayment table to be used to
calculate the payment. If entered, this number defaults to each new plan segment
opened on the account. The CONTROLLING PLAN field on the Credit Plan Master
serves the same purpose at the plan level.

CRITERIA FOR CONSOLIDATED PAYMENTS

CMS can consolidate payment calculations only for plans that meet the following
criteria:
Payment types must be equal
Payment types cannot be A, B, D, E, F, I, L, M, or P
The consolidated payment flag (CONSOLIDATED PAYMENT) must be Y, R, or B.

CRITERIA FOR CONSOLIDATED STATEMENTS

Plan number must be equal (sequence numbers distinguish between plan

segments)
Plan types must be revolving without interest, payment, or billing deferments
The consolidated statement flag (CONSOLIDATED STATEMENT) must be Y.

Section 11 - 13
CMS 8.0

CONSOLIDATED PAYMENT FLAG AND CONTROLLING PLAN

ARMC PAGE 01

ARMC ( ) USER DEFINED TITLE PAGE 01 08/26/1999

CREDIT PLAN MASTER 10:16:34
ORG 900 PLAN NBR 60014 DATE LAST MAINT 06/28/1999
DESCRIPTION ( CASH ADVANCE PLAN )
PLAN TYPE ( C ) REQUIRED DOWN PMT ( A ) ( 0000000 )
RATE TBL OCCUR ( 01 ) MULTIPLE SALES ( Y )
BEGINNING DATE ( ) ENDING DATE ( )
BALANCE TRANSFER TYPE ( N ) INTEREST TABLE OVRRDE ( 001 )
GRACE DAY BALANCE ( Y ) ITO EXP ( M 001 ) ( )
MIN SALE ( 000000000 ) MAX SALE ( 000000000 )
POSTING INDICATOR ( 0 )
DEFER INT ( 000 ) ( 0 ) ( ) ( 0 ) PLAN ID ( 654 )
DEFER INS ( 000 ) ( 0 ) ( ) ( 0 ) RECORD COUNT IND ( 05 )

DFR BILL ( 000 ) ( 0 ) ( ) PRODUCT CODE ( 65498 )

DEFER PMT ( 000 ) ( 0 ) ( )
CANCEL F / LVL / LTR / PLAN /METHOD ( 0 ) ( 0 ) ( ) ( 00000 ) ( 0 )
EXPR / LTR / PLAN / METHOD ( 0 ) ( ) ( 00000 ) ( 0 )
USER CD 1 ( 000 ) USER CD 2 ( 000 ) USER CD 3 ( 000 )
USER CD 4 ( 00000 ) USER CD 5 ( 00000 ) USER CD 6 ( 00000 )
PAYMENT OPTIONS - PAYMENT TYPE ( C )
CONSOLIDATED PAYMENT ( Y )
CONSOLIDATED STATEMENT ( N ) CONTROLLING PLAN ( 60013 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

RELATED FIELDS

CONSOLIDATED Code that indicates whether CMS calculates a single

PAYMENT (consolidated) payment amount for similar credit plan segments
on an account. This field defaults to the Credit Plan Segment
record (CONS: PYMT on ARMA05). The values are:
N = No, do not consolidate for minimum payment
calculation (Default)
Y = Yes, consolidate different plans for minimum
payment calculation. All plans with payment
types other than A, B, D, F, I, and P may be
combined. For this option, CMS totals the
balances of all plans with a consolidated
payment flag = Y and calculates each plan’s
payment based on the repayment table of
either the controlling plan or the CONS PMT
PLAN (ARMY02). CMS then compares the
calculated payment to the Account Control
Table minimum payment fields and adjusts
the payment if necessary.

Section 11 - 14
 Payment Processing

B = Yes, consolidate regular revolving and special

credit plans for minimum payment
calculation. For this option, CMS totals the
balances of all revolving plans with a
consolidated payment flag = Y and calculates
each plan’s payment based on the repayment
table of either the controlling plan or the
CONS PMT PLAN (ARMY02). CMS then
compares the calculated payment to the
Account Control Table minimum payment
fields and adjusts the payment if necessary.
CMS then repeats the process totaling the
balances for all special plans.
R = Yes, consolidate only regular revolving credit
plans for minimum payment calculations.
CMS totals the balances of all revolving plans
with a consolidated payment flag = Y and
calculates each plan’s payment based on the
repayment table of either the controlling plan
or the CONS PMT PLAN (ARMY02). CMS then
compares the calculated payment to the
Account Control Table minimum payment
fields and adjusts the payment if necessary.

CONSOLIDATED Code that indicates whether CMS consolidates statements for

STATEMENT credit plans assigned the same plan number. This value defaults to
the Credit Plan Segment record (CONS: STMT on ARMA05). The
values are:
N = Do not consolidate plan segments
Y = Consolidate plan segments. (Default)

CONTROLLING Plan number of the Credit Plan Master record used for
PLAN consolidated payment calculations. CMS consolidates all plan
segments with the same CONTROLLING PLAN number for payment
calculations.

 If the CONSOLIDATED PAYMENT field is N or the PAYMENT

TYPE field is A, B, D, F, I, or P, this field must be the same plan
number as the PLAN NBR field.

Section 11 - 15
CMS 8.0

CONSOLIDATED PAYMENT PLAN DEFAULT

ARMY PAGE 02

ARMY ( ) ** USER DEFINED TITLE ** PAGE 02 11/15/2001

ACCOUNT CONTROL TABLE 06:36:18
ORGANIZATION 000 LOGO 000 TABLE 001 LAST MAINT 09/06/2001

PMT DUE DAYS ( 99 ) PMT DUE DATE ( 00 ) GRACE DAY BAL ( D )

MINIMUM INTEREST ( 000000050 ) GRACE DAYS ( 25 )
MIN PYMT: AMT ( 000000015 ) PERCENT ( 0100000 ) IND ( 4 )
MIN INT WAIVE LVL ( A ) MAXIMUM AMOUNT ( 000000025 )
MAXIMUM BAL ( 00000000000001001 )

CASH LIMIT FLAG ( P ) % OR AMT ( 00000000000750000 ) CONS PMT PLAN ( 00000 )

LOAN LIMIT FLAG ( P ) % OR AMT ( 00000000000500000 ) CONS INS PLAN ( 00000 )
FEE DISCL IND ( 1 ) CASH PLAN ( 10001 )
FEE DISCL CYCLE ( 2 ) RETAIL PLAN ( 10002 )

CO ACCR INTEREST ( 1 ) SECURITY % ( 100 )

VAR RATE DISCL DAYS ( 060 )

IMMED DORMANT ACCOUNT RATIFICATION ( 1 )
ITO INTEREST OPTIONS ( 1 )

CURRENCY 840 NOD 2 PER ITEM NOD 3 PERCENTAGE NOD 7

PF1=ARMU PF2=ARMF PF3=ARMR PF4=ARMI PF5=ARVM PF6=INQUIRY

RELATED FIELDS

CONS PMT PLAN Number that identifies the Credit Plan Master record with the
Repayment table that CMS uses for repayment calculations. CMS
consolidates all qualifying credit plan segment balances for
payment calculations.

Section 11 - 16
 Payment Processing

CONSOLIDATED PAYMENT PROCESSING

The following scenarios describe the difference between an account without

consolidated payments and an account with consolidated payments.
Example 1:
Payments are not consolidated. The Repayment tables on Credit Plan Masters
specify payments of 10% on balances up to $1,000, 5 % on balances over $1,000.
This plan segment… With a balance of… Computes a payment of…
50001 $1,000.00 $100.00
50002 $ 500.00 $ 50.00
If payments are not consolidated, CMS computes a separate payment for each
plan segment balance. Each balance falls into a repayment range of 10%. CMS
adds the two payments together to arrive at the total due on the account.
Calculated payment: $150.00.
Example 2:
Payments are consolidated. The Repayment table on the controlling Credit Plan
Master, 50001, specifies payments of 10% on balances up to $1,000, 5 % on
balances over $1,000.
These plan segments… Add their balances… For a total balance of…
50001 $1,000.00 $1,500.00
50002 $ 500.00
CMS derives the total balance of $1,500.00 before computing the payment due.
The combined balance falls into a repayment range of 5%.
Calculated payment: $75.00.
CMS compares the consolidated payment amount to the minimum payment
amount defined on the Account Control table (ARMY02). CMS bills the
customer the greater of the consolidated payment amount or the Account Control
table minimum payment amount.
When consolidated payment calculation is used, the calculated payment amount is
allocated back to each plan’s total due based the PLAN PAYMENT option on the
Logo record (ARML14).

Section 11 - 17
CMS 8.0

PLAN PAYMENT OPTION

ARML PAGE 14

ARML ( ) ** USER DEFINED TITLE ** PAGE 14 11/13/2001

LOGO RECORD 13:30:20
ORGANIZATION 100 LOGO 101
PROCESSING CONTROL OPTIONS (CONT.) BILL THRESH ( 000001000 )
MIN REAGE MONTHS ( 12 ) REAGE PERIOD ( 036 ) REAGE PERIOD LIMIT ( 2 )
PROC CONTROL LEVEL ( O ) PRE-PAY ALLOWED ( 2 ) PRE-PAY MONTHS ( 03 )
BILL EVEN AMOUNTS ( Y ) BILL OVER LIMIT ( N )
SKIP ALLOWED ( Y ) SKIP SELECTED ( N ) SKIP EXPIRES ( )
REAGED AT ( C ) ( 030 ) REAGE FREQ ( 24 ) REAGE CD LVL ( 4 )
FLEX BILL MONTHS ( 00 ) PREPAY ZERO ( 1 ) PLAN PAYMENT ( F )
PAYMENT VARIANCE ( A ) ( 000000500 ) DELINQUENCY INTEREST LEVEL ( 4 )
PAYOFF VARIANCE A ( 000001000 ) P ( 0000000 ) MAX ( 000000000 )
QUAL PMT A ( 000002000 ) P ( 9000000 ) NOM BILL OVERLIMIT ( 1 )
QUAL PAYMENT RESET % ( 090 ) C/O CREDIT APPLICATION F/L/B ( F )
PAYMENT APPLICATION LVL ( P ) MIN DELQ AMT ( 00000000000005000 )
UNDER PAYMENT 1-4 F/L OVER PAYMENT 1-4 F/L
REVOLVING ( 1 ) ( F ) REVOLVING ( 1 ) ( F )
DEFERRED INT-F/C ( 1 ) ( F ) DEFERRED INT-F/C ( 1 ) ( F )
DEFERRED PAYMENT ( 1 ) ( F ) DEFERRED PAYMENT ( 1 ) ( F )
DEFERRED BILLING ( 1 ) ( F ) DEFERRED BILLING ( 1 ) ( F )
OTB: CR BAL ( 0 ) DISP ( 0 ) LOAN AMT ( 1 )
AUTH DAYS - APP ( 10 ) AUTH DAYS - DECL ( 15 ) AUTH VARIANCE ( 1500000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMS PF3=ARMO PF4=ARMG PF5=ARMC PF6=INQUIRY

RELATED FIELDS

PLAN PAYMENT Code that determines how CMS distributes the calculated
payment for an account with multiple credit plans using the same
credit plan number or for an account using the payment
consolidation feature for credit plans. The values are:
F = FIFO (first in, first out) distribution (Default)
L = LIFO (last in, first out) distribution
P = Prorated distribution.

Section 11 - 18
 Payment Processing

PREPAYMENTS
With prepayment processing, you can allow your customers to make payments in
advance. Establish the criteria for your customers to make prepayments on the
Logo record (ARML14).
If you allow prepayments, you must type an appropriate value in the PRE-PAY
ALLOWED field. The options you can use to control prepaid amounts are:

Create prepayments by special transaction codes only

Treat any overpayment as a prepayment.
Use logic module 36 to create prepayments by special transaction codes. CMS
treats any payment applied using this logic module as a non-directed (global)
payment. This means that it first pays off any current amount due and applies any
remaining amounts as prepaid amounts. CMS deducts the prepaid amount from
any amounts billed on future statements.
If you allow prepayments, you must designate the number of months that you
allow them in the PRE-PAY MONTHS field.

 Prepayments are not allowed for payment types of A, B, or I.

Section 11 - 19
CMS 8.0

PREPAYMENT OPTIONS

ARML PAGE 14
ARML ( ) ** USER DEFINED TITLE ** PAGE 14 11/13/2001
LOGO RECORD 13:30:20
ORGANIZATION 100 LOGO 101
PROCESSING CONTROL OPTIONS (CONT.) BILL THRESH ( 000001000 )
MIN REAGE MONTHS ( 12 ) REAGE PERIOD ( 036 ) REAGE PERIOD LIMIT ( 2 )
PROC CONTROL LEVEL ( O ) PRE-PAY ALLOWED ( 2 ) PRE-PAY MONTHS ( 03 )
BILL EVEN AMOUNTS ( Y ) BILL OVER LIMIT ( N )
SKIP ALLOWED ( Y ) SKIP SELECTED ( N ) SKIP EXPIRES ( )
REAGED AT ( C ) ( 030 ) REAGE FREQ ( 24 ) REAGE CD LVL ( 4 )
FLEX BILL MONTHS ( 00 ) PREPAY ZERO ( 1 ) PLAN PAYMENT ( F )
PAYMENT VARIANCE ( A ) ( 000000500 ) DELINQUENCY INTEREST LEVEL ( 4 )
PAYOFF VARIANCE A ( 000001000 ) P ( 0000000 ) MAX ( 000000000 )
QUAL PMT A ( 000002000 ) P ( 9000000 ) NOM BILL OVERLIMIT ( 1 )
QUAL PAYMENT RESET % ( 090 ) C/O CREDIT APPLICATION F/L/B ( F )
PAYMENT APPLICATION LVL ( P ) MIN DELQ AMT ( 00000000000005000 )
UNDER PAYMENT 1-4 F/L OVER PAYMENT 1-4 F/L
REVOLVING ( 1 ) ( F ) REVOLVING ( 1 ) ( F )
DEFERRED INT-F/C ( 1 ) ( F ) DEFERRED INT-F/C ( 1 ) ( F )
DEFERRED PAYMENT ( 1 ) ( F ) DEFERRED PAYMENT ( 1 ) ( F )
DEFERRED BILLING ( 1 ) ( F ) DEFERRED BILLING ( 1 ) ( F )
OTB: CR BAL ( 0 ) DISP ( 0 ) LOAN AMT ( 1 )
AUTH DAYS - APP ( 10 ) AUTH DAYS - DECL ( 15 ) AUTH VARIANCE ( 1500000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMS PF3=ARMO PF4=ARMG PF5=ARMC PF6=INQUIRY

RELATED FIELDS

PRE-PAY Code that indicates whether prepayments are allowed for accounts
ALLOWED in this logo. The values are:
0 = Do not allow prepayments.
1 = Allow prepayments only for transactions
associated with logic module 36
(prepayment).
2 = Allow prepayments for transactions
associated with all payment logic modules
(30, 33, 36, and 39). Any overpayment is
treated as a prepayment.
The value in this field defaults to the Account Base Segment
record (PREPAY ALLWD on ARMB03). You can modify this value
at the account level.

PRE-PAY Number of consecutive months in which the entire computed

MONTHS payment due can be satisfied by a pre-paid amount. The value in
this field defaults to the Account Base Segment record (PREPAY
MTHS on ARMB03). You can modify this value at the account
level.

Section 11 - 20
 Payment Processing

PRE-PAY ZERO Zero amount in prepayment option. This field determines when
and if the prepay amount is reset to zero. The values are:
0 = Set to zero anytime the account has a zero or
credit balance (Default)
1 = Set to zero at statement time if the account
balance is zero or credit balance
2 = Never set to zero.

The value in this field defaults to the Account Base Segment

record (PREPAY ZERO on ARMB03). You can modify this value at
the account level.

PREPAYMENT PROCESSING

If the PRE-PAY ALLOWED field is 2 (any overpayment is treated as a prepayment)

and you enter 3 in the PRE-PAY MONTHS field, the following process takes place:
CMS applies the entire prepaid amount to the current balance
CMS subtracts the current month’s requested payment amount from the actual
payment amount received
All prepayments affect the account’s requested payment amount each month.
In this scenario, the following applies:

Month Balance Requested Payment Balance Amount in

Before Payment Amount After Pre-Pay
Payment Amount Received Payment
Jan 250.00 20.00 60.00 190.00 40.00
Feb 190.00 0.00 0.00 190.00 20.00
Mar 190.00 0.00 0.00 190.00 0.00
Apr 190.00 20.00 20.00 170.00 0.00

Section 11 - 21
CMS 8.0

SKIP PAYMENTS
You can allow your customers to occasionally skip their scheduled payments
without affecting the delinquency aging of their accounts. Use the following
methods to activate the skip payment feature:
Automatic skip payments
Manual skip payments
Block code skip payments.

AUTOMATIC SKIP PAYMENTS

The SKIP PAYMENT field on the Account Base Segment (ARMB03) indicates
whether the skip payment feature is in effect for an account. When you add a new
account, CMS automatically sets its skip payment field to Z, making the new
account eligible for automatic skip payments. To activate the automatic skip
payment feature, you must designate the following on the Logo record
(ARML14):
Y in the SKIP ALLOWED field
Y in the SKIP SELECTED field
Current day’s date or a future date in the SKIP EXPIRES field.
On the first statement date that the skip payment feature is active, CMS changes
every account that qualifies for automatic skip payment from Z in the SKIP
PAYMENT field to A. This means that the account currently has an automatic skip
payment in effect. If an account does not qualify for an automatic skip payment,
Z remains in the SKIP PAYMENT field.

CONDITIONS FOR AUTOMATIC SKIP PAYMENTS

Accounts must meet several conditions to qualify for an automatic skip payment.
The account must have:
A CYCLE DUE code of 1
A CURRENT BALANCE less DISPUTES no greater than the account’s credit limit
No block code with a priority greater than 07
An internal status of A (active)
A SKIP PAYMENT flag of Z (eligible for automatic skip payments).
If the account meets these conditions and qualifies for an automatic skip payment,
CMS calculates the minimum payment amount and bills that amount on the
current statement. For automatic skip payments, a message prints on the
customers’ statements to inform them that they have the opportunity to skip a
payment.

Section 11 - 22
 Payment Processing

When an account goes through the delinquency aging process, and your customer
does not make a payment during the cycle, CMS automatically skips, or forgives,
the payment billed on the last statement.

 Although the account does not age when skip payment is in

effect, CMS still calculates finance charges.

If you decide not to allow automatic skip payments for a qualified, eligible
account, you can manually override the skip payment at the account level.

MANUAL SKIP PAYMENTS

To activate the manual skip payment feature, complete the following:

Type Y in the SKIP ALLOWED field (ARML14)
Type M in the SKIP PAYMENT field (ARMB03).
A manual skip payment is in effect only for the month the account’s SKIP
PAYMENT flag is M.

BLOCK CODE SKIP PAYMENTS

To activate the skip payment feature using a block code, type S in the DF
(deferment flag) block code field on the Logo record (ARML07 or 08). A block-
code skip payment is in effect for as long as the block code remains on the
account.

 Block codes are covered in Section 15 of this manual.

Section 11 - 23
CMS 8.0

SKIP PAYMENT PARAMETERS

ARML PAGE 14

ARML ( ) ** USER DEFINED TITLE ** PAGE 14 11/13/2001

LOGO RECORD 13:30:20
ORGANIZATION 100 LOGO 101
PROCESSING CONTROL OPTIONS (CONT.) BILL THRESH ( 000001000 )
MIN REAGE MONTHS ( 12 ) REAGE PERIOD ( 036 ) REAGE PERIOD LIMIT ( 2 )
PROC CONTROL LEVEL ( O ) PRE-PAY ALLOWED ( 2 ) PRE-PAY MONTHS ( 03 )
BILL EVEN AMOUNTS ( Y ) BILL OVER LIMIT ( N )
SKIP ALLOWED ( Y ) SKIP SELECTED ( N ) SKIP EXPIRES ( )
REAGED AT ( C ) ( 030 ) REAGE FREQ ( 24 ) REAGE CD LVL ( 4 )
FLEX BILL MONTHS ( 00 ) PREPAY ZERO ( 1 ) PLAN PAYMENT ( F )
PAYMENT VARIANCE ( A ) ( 000000500 ) DELINQUENCY INTEREST LEVEL ( 4 )
PAYOFF VARIANCE A ( 000001000 ) P ( 0000000 ) MAX ( 000000000 )
QUAL PMT A ( 000002000 ) P ( 9000000 ) NOM BILL OVERLIMIT ( 1 )
QUAL PAYMENT RESET % ( 090 ) C/O CREDIT APPLICATION F/L/B ( F )
PAYMENT APPLICATION LVL ( P ) MIN DELQ AMT ( 00000000000005000 )
UNDER PAYMENT 1-4 F/L OVER PAYMENT 1-4 F/L
REVOLVING ( 1 ) ( F ) REVOLVING ( 1 ) ( F )
DEFERRED INT-F/C ( 1 ) ( F ) DEFERRED INT-F/C ( 1 ) ( F )
DEFERRED PAYMENT ( 1 ) ( F ) DEFERRED PAYMENT ( 1 ) ( F )
DEFERRED BILLING ( 1 ) ( F ) DEFERRED BILLING ( 1 ) ( F )
OTB: CR BAL ( 0 ) DISP ( 0 ) LOAN AMT ( 1 )
AUTH DAYS - APP ( 10 ) AUTH DAYS - DECL ( 15 ) AUTH VARIANCE ( 1500000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMS PF3=ARMO PF4=ARMG PF5=ARMC PF6=INQUIRY

RELATED FIELDS

SKIP ALLOWED Code that indicates whether manual skip payments are allowed
for accounts in this logo. The values are:
N = Skip payments are not allowed (Default)
Y = Skip payments are allowed.

SKIP SELECTED Code that indicates whether to select accounts for automatic skip
payments. To be selected, an account cannot be delinquent,
overlimit, or blocked. The values are:
N = Do not select accounts for skip payments
(Default)
Y = Select accounts for skip payments based on
the account cycle date.

SKIP EXPIRES Last date that CMS allows skip payment processing for accounts
processed by the logo.

Section 11 - 24
 Payment Processing

ACCOUNT-LEVEL PREPAYMENT AND SKIP PAYMENT CONTROLS

ARMB PAGE 03

ARMB ( ) USER DEFINED TITLE PAGE 03 04/15/1999

ACCOUNT BASE SEGMENT 14:15:13
ORGANIZATION 100 LOGO 152 ACCOUNT 0004441501001520003
RESIDENCE ID ( FL ) ISSUANCE ID ( FL ) SECURED 0 COLLATERAL 0
PRICING CTRL ( ) START DATE ( 00000000 ) EXPIRATION DATE ( 00000000 )
PCT LVL OVRRIDE ( ) START DATE ( 00000000 ) EXPIRATION DATE ( 00000000 )
OWNERSHIP FLAG ( 0 ) OFFICER ( )
WAIVE: INT ( 0 ) LATE CHARGES ( 0 ) LATE NOTICES ( 0 ) MEMBERSHIP ( 0 )
LTR ( 0 ) OVERLIMIT FEE ( 0 ) OVLM NOTICE ( 0 ) NSF 1-5 ( 0 )
SVC FEES: 1 ( 0 ) 2 ( 0 ) 3 ( 0 ) 4 ( 0 ) 5 ( 0 )
6 ( 0 ) 7 ( 0 ) 8 ( 0 ) 9 ( 0 ) 10 ( 0 )
USER FEES 1 ( 1 ) 2 ( 1 ) 3 ( 1 ) 4 ( 1 ) 5 ( 1 ) 6 ( 1 ) CRD FEE ( 0 )
SKIP PAYMENT ( Z ) FREQ SHOP IND ( Y ) FRAUD REPORT ( Y ) CASH LMT ( Y )
PREPAY ALLWD ( 0 ) PREPAY MTHS ( 00 ) PREPAY ZERO ( 0 ) LOAN LMT ( Y )
DELQ CNTRS: PAST ( 000 ) 30 DAY ( 000 ) 60 DAY ( 000 ) 90 DAY ( 000 )
120 DAY ( 000 ) 150 DAY ( 000 ) 180 DAY ( 000 ) 210 DAY ( 000 )
24 MONTH HISTORY
01/13 02/14 03/15 04/16 05/17 06/18 07/19 08/20 09/21 10/22 11/23 12/24
DELQ 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0
PYMT ( N ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )
( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )

PF1=ARMU PF2=ARIB PF3=ARIQ PF4=ARMN PF5=ARME PF6=INQUIRY

RELATED FIELDS

SKIP PAYMENT Code that indicates whether skip payments are in effect for this
account. The values are:
A = Automatic skip payment is in effect
M = Manual skip payment is in effect
V = Override of the automatic skip payment is in
effect
X = Account ineligible for automatic skip
payment (logo level)
Z = Account eligible for selection if automatic
skip payment turned on. (Default)

Section 11 - 25
CMS 8.0

PREPAY ALLWD Code that indicates whether prepayments are allowed for the
account. The values are:
0 = Do not allow prepayments.
1 = Allow prepayments only for transactions
associated with logic module 36
(prepayment).
2 = Allow prepayments for transactions
associated with all payment logic modules
(30, 33, 36, and 39). Any overpayment is
treated as a prepayment.

The default value for this field is set in the Logo record (PRE-PAY
ALLOWED on ARML14). You can modify this value at the account
level.

PREPAY MTHS Number of consecutive months in which the entire computed

payment due can be satisfied by a pre-paid amount. The default
value for this field is set in the Logo record (PRE-PAY MONTHS on
ARML14). You can modify this value at the account level.

PREPAY ZERO Code that determines if the prepaid amount is reset to zero for the
account. The values are:
0 = Set prepaid amount to zero anytime the
account has a zero balance or a credit balance
1 = Set prepaid amount to zero at statement time
if the account has a zero balance or a credit
balance
2 = Never set prepaid amount to zero.

Section 11 - 26
 Payment Processing

REVIEW
1. Use the Credit Plan Master record below to calculate the payment requested for
the following balances.

ARMC ( ) USER DEFINED TITLE PAGE 01 08/26/1999

CREDIT PLAN MASTER 10:16:34
ORG 900 PLAN NBR 60000 DATE LAST MAINT 06/28/1999
DESCRIPTION ( RETAIL PURCHASE PLAN )
PLAN TYPE ( R ) REQUIRED DOWN PMT ( A ) ( 0000000 )
RATE TBL OCCUR ( 01 ) MULTIPLE SALES ( Y )
BEGINNING DATE ( ) ENDING DATE ( )
BALANCE TRANSFER TYPE ( N ) INTEREST TABLE OVRRDE ( 001 )
GRACE DAY BALANCE ( Y ) ITO EXP ( M 001 ) ( )
MIN SALE ( 000000000 ) MAX SALE ( 000000000 )
POSTING INDICATOR ( 0 )
DEFER INT ( 000 ) ( 0 ) ( ) ( 0 ) PLAN ID ( 654 )
DEFER INS ( 000 ) ( 0 ) ( ) ( 0 ) RECORD COUNT IND ( 05 )

DFR BILL ( 000 ) ( 0 ) ( ) PRODUCT CODE ( 65498 )

DEFER PMT ( 000 ) ( 0 ) ( )
CANCEL F / LVL / LTR / PLAN /METHOD ( 0 ) ( 0 ) ( ) ( 00000 ) ( 0 )
EXPR / LTR / PLAN / METHOD ( 0 ) ( ) ( 00000 ) ( 0 )
USER CD 1 ( 000 ) USER CD 2 ( 000 ) USER CD 3 ( 000 )
USER CD 4 ( 00000 ) USER CD 5 ( 00000 ) USER CD 6 ( 00000 )
PAYMENT OPTIONS - PAYMENT TYPE ( C )
CONSOLIDATED PAYMENT ( N )
CONSOLIDATED STATEMENT ( N ) CONTROLLING PLAN ( 00000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

ARMC ( ) USER DEFINED TITLE PAGE 02 08/26/1999

REPAYMENT TABLE 10:17:49

MAX BALANCE PAYMENT A/P

01 ( 00000000000000010 ) ( 000010000 ) ( P )
02 ( 00000000000000100 ) ( 000000010 ) ( A )
03 ( 00999999999999999 ) ( 000010000 ) ( P )
04 ( 00999999999999999 ) ( 000000000 ) ( A )
05 ( 00999999999999999 ) ( 000000000 ) ( A )
06 ( 00999999999999999 ) ( 000000000 ) ( A )
07 ( 00999999999999999 ) ( 000000000 ) ( A )
08 ( 00999999999999999 ) ( 000000000 ) ( A )
09 ( 00999999999999999 ) ( 000000000 ) ( A )
10 ( 00999999999999999 ) ( 000000000 ) ( A )

CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7

PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

PLAN BALANCE CALCULATED PAYMENT

8.50 ______________________
50.00 ______________________
500.00 ______________________

Section 11 - 27
CMS 8.0

2. The ____________________ and ____________________ on the Account Base

Segment determine whether special payment arrangements are in effect for the
account.

3. In what three ways can these fields override payment calculation?

_________________________________________________________________
_________________________________________________________________
_________________________________________________________________

4. What are the criteria for consolidated payments?

_________________________________________________________________
_________________________________________________________________

5. What six payment types cannot be consolidated?

______________________________ ______________________________
______________________________ ______________________________
______________________________ ______________________________

6. Use the control records below to calculate the minimum payment amounts for the
account.

ARMC ( ) USER DEFINED TITLE PAGE 01 08/26/1999

CREDIT PLAN MASTER 10:16:34
ORG 900 PLAN NBR 60013 DATE LAST MAINT 06/28/1999
DESCRIPTION ( RETAIL PURCHASE PLAN )
PLAN TYPE ( R ) REQUIRED DOWN PMT ( A ) ( 0000000 )
RATE TBL OCCUR ( 01 ) MULTIPLE SALES ( Y )
BEGINNING DATE ( ) ENDING DATE ( )
BALANCE TRANSFER TYPE ( N ) INTEREST TABLE OVRRDE ( 001 )
GRACE DAY BALANCE ( Y ) ITO EXP ( M 001 ) ( )
MIN SALE ( 000000000 ) MAX SALE ( 000000000 )
POSTING INDICATOR ( 0 )
DEFER INT ( 000 ) ( 0 ) ( ) ( 0 ) PLAN ID ( 654 )
DEFER INS ( 000 ) ( 0 ) ( ) ( 0 ) RECORD COUNT IND ( 05 )

DFR BILL ( 000 ) ( 0 ) ( ) PRODUCT CODE ( 65498 )

DEFER PMT ( 000 ) ( 0 ) ( )
CANCEL F / LVL / LTR / PLAN /METHOD ( 0 ) ( 0 ) ( ) ( 00000 ) ( 0 )
EXPR / LTR / PLAN / METHOD ( 0 ) ( ) ( 00000 ) ( 0 )
USER CD 1 ( 000 ) USER CD 2 ( 000 ) USER CD 3 ( 000 )
USER CD 4 ( 00000 ) USER CD 5 ( 00000 ) USER CD 6 ( 00000 )
PAYMENT OPTIONS - PAYMENT TYPE ( C )
CONSOLIDATED PAYMENT ( Y )
CONSOLIDATED STATEMENT ( N ) CONTROLLING PLAN ( 60013 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

Section 11 - 28
 Payment Processing

ARMC ( ) USER DEFINED TITLE PAGE 02 08/26/1999

REPAYMENT TABLE 10:17:49

MAX BALANCE PAYMENT A/P

01 ( 00999999999999999 ) ( 000010000 ) ( P )
02 ( 00999999999999999 ) ( 000000000 ) ( A )
03 ( 00999999999999999 ) ( 000000000 ) ( A )
04 ( 00999999999999999 ) ( 000000000 ) ( A )
05 ( 00999999999999999 ) ( 000000000 ) ( A )
06 ( 00999999999999999 ) ( 000000000 ) ( A )
07 ( 00999999999999999 ) ( 000000000 ) ( A )
08 ( 00999999999999999 ) ( 000000000 ) ( A )
09 ( 00999999999999999 ) ( 000000000 ) ( A )
10 ( 00999999999999999 ) ( 000000000 ) ( A )

CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7

PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

The balance on plan segment 60013 is $150.00.

ARMC ( ) USER DEFINED TITLE PAGE 01 08/26/1999

CREDIT PLAN MASTER 10:16:34
ORG 900 PLAN NBR 60014 DATE LAST MAINT 06/28/1999
DESCRIPTION ( CASH ADVANCE PLAN )
PLAN TYPE ( C ) REQUIRED DOWN PMT ( A ) ( 0000000 )
RATE TBL OCCUR ( 01 ) MULTIPLE SALES ( Y )
BEGINNING DATE ( ) ENDING DATE ( )
BALANCE TRANSFER TYPE ( N ) INTEREST TABLE OVRRDE ( 001 )
GRACE DAY BALANCE ( Y ) ITO EXP ( M 001 ) ( )
MIN SALE ( 000000000 ) MAX SALE ( 000000000 )
POSTING INDICATOR ( 0 )
DEFER INT ( 000 ) ( 0 ) ( ) ( 0 ) PLAN ID ( 654 )
DEFER INS ( 000 ) ( 0 ) ( ) ( 0 ) RECORD COUNT IND ( 05 )

DFR BILL ( 000 ) ( 0 ) ( ) PRODUCT CODE ( 65498 )

DEFER PMT ( 000 ) ( 0 ) ( )
CANCEL F / LVL / LTR / PLAN /METHOD ( 0 ) ( 0 ) ( ) ( 00000 ) ( 0 )
EXPR / LTR / PLAN / METHOD ( 0 ) ( ) ( 00000 ) ( 0 )
USER CD 1 ( 000 ) USER CD 2 ( 000 ) USER CD 3 ( 000 )
USER CD 4 ( 00000 ) USER CD 5 ( 00000 ) USER CD 6 ( 00000 )
PAYMENT OPTIONS - PAYMENT TYPE ( C )
CONSOLIDATED PAYMENT ( Y )
CONSOLIDATED STATEMENT ( N ) CONTROLLING PLAN ( 60013 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

The balance on plan segment 60014 is $50.00.

Section 11 - 29
CMS 8.0

ARMY ( ) ** USER DEFINED TITLE ** PAGE 02 11/15/2001

ACCOUNT CONTROL TABLE 06:36:18
ORGANIZATION 000 LOGO 000 TABLE 001 LAST MAINT 09/06/2001

PMT DUE DAYS ( 99 ) PMT DUE DATE ( 00 ) GRACE DAY BAL ( D )

MINIMUM INTEREST ( 000000050 ) GRACE DAYS ( 25 )
MIN PYMT: AMT ( 000000015 ) PERCENT ( 0100000 ) IND ( 4 )
MIN INT WAIVE LVL ( A ) MAXIMUM AMOUNT ( 000000025 )
MAXIMUM BAL ( 00000000000001001 )

CASH LIMIT FLAG ( P ) % OR AMT ( 00000000000750000 ) CONS PMT PLAN ( 00000 )

LOAN LIMIT FLAG ( P ) % OR AMT ( 00000000000500000 ) CONS INS PLAN ( 00000 )
FEE DISCL IND ( 1 ) CASH PLAN ( 10001 )
FEE DISCL CYCLE ( 2 ) RETAIL PLAN ( 10002 )

CO ACCR INTEREST ( 1 ) SECURITY % ( 100 )

VAR RATE DISCL DAYS ( 060 )

IMMED DORMANT ACCOUNT RATIFICATION ( 1 )
ITO INTEREST OPTIONS ( 1 )

CURRENCY 840 NOD 2 PER ITEM NOD 3 PERCENTAGE NOD 7

PF1=ARMU PF2=ARMF PF3=ARMR PF4=ARMI PF5=ARVM PF6=INQUIRY

The payment requested for the account is _______________.

7. The ____________________ on ARML14 is used to distribute the consolidated

payment requested back to the individual plan segments.

8. ____________________ processing allows customers to make payments in

advance.

9. ____________________ processing allows customers to miss a payment without

affecting the delinquency aging of their accounts.

Section 11 - 30
 Payment Processing

PAYMENT APPLICATION

KEY TERMS

Non-directed (Global) Payment: A payment applied to all Credit Plan Segments

of an account. Non-directed payment transactions are associated with logic
module 30.
Force-Post Payment: A force-post payment is a non-directed payment that posts,
regardless of the transaction’s effective date or any block codes set at the account
level. Force-post payment transactions are associated with logic module 39.
Directed Payment: A payment applied to a specific Credit Plan Segment. In
order to post to a specific plan, the payment transaction must have the plan
number on it. Directed payment transactions are associated with logic module 33.
Normal Payment: A payment equal to the amount requested.
Non-normal Payment: A payment that is not equal to the amount requested. A
non-normal payment may be an underpayment (less than the amount requested) or
an overpayment (greater than the amount requested).

 The PAYMENT VARIANCE, PAYOFF VARIANCE, QUAL PMT, and

QUAL PAYMENT REST % fields on ARML14 affect how CMS
accepts underpayments. These fields are covered in Section
16, “Delinquency and Collections,” of this manual.

Section 11 - 31
CMS 8.0

PAYMENT HIERARCHY
Use the PAYMENT HIERARCHY on ARML12 to specify the order in which a
payment will satisfy the BNP (billed-not-paid) components of a Credit Plan
Segment’s balance. CMS first pays the component you designate as 01, then pays
the component you designate as 02, and so on, until it reaches all 17 components
or exhausts the payment.
The PAYMENT HIERARCHY enables you to apply payments first to interest and fees
and then to principal and current transactions. The system includes the current
month’s purchases in the hierarchy to allow you to control whether payments will
satisfy billed purchases before new purchases.
When establishing the PAYMENT HIERARCHY, you must:
Enter a number for each balance component, even if a component is not used
by your institution.
Enter a unique number for each balance component. You cannot give the
same priority to two or more components.
CMS provides separate payment hierarchies for accounts receivable and profit
and loss in case your institution has separate payment application policies for the
two.

Section 11 - 32
 Payment Processing

ARML PAGE 12

ARML ( ) USER DEFINED TITLE PAGE 12 08/29/1999

LOGO RECORD 11:38:29
ORGANIZATION 100 LOGO 112
TRANSACTION CONTROL POST DATED BACK DATED STMTS
DEBITS ( W ) ( 365 ) ( A ) ( 365 ) ( W )
CREDITS ( W ) ( 365 ) ( A ) ( 365 ) ( W )
TRANSFER TXN ( O )
DD/DC/ACH ALLOWED ( N ) DD/ACH PAYMENT FLAG ( D )
DD/ACH CYCLE DUE ( 0 ) DC/ACH CYCLE DUE ( 0 )

CARD ACTIVATION
NEW ( Y ) REISSUE ( Y ) PHONE NUMBER ( 4076608807 )
ADDITIONAL ( Y ) REPLACEMENT ( Y ) CRITERIA TABLE ( 00000 )
PAYMENT HIERARCHY APPLICATION METH ( C ) PRINCIPAL PRO RATA ( N )
A/R: INT ( 01 ) SVC ( 04 ) LATE ( 06 ) NSF ( 08 ) OVLM ( 10 ) INS ( 13 )
COLL ( 11 ) RCVY ( 12 ) MEMB ( 15 ) CURR ( 17 ) PRIN ( 16 )
FEE1 ( 02 ) FEE2 ( 03 ) FEE3 ( 05 ) FEE4 ( 07 ) FEE5 ( 09 ) FEE6 ( 14 )

P/L: INT ( 01 ) SVC ( 02 ) LATE ( 03 ) NSF ( 04 ) OVLM ( 05 ) INS ( 06 )

COLL ( 07 ) RCVY ( 08 ) MEMB ( 09 ) CURR ( 10 ) PRIN ( 11 )
FEE1 ( 12 ) FEE2 ( 13 ) FEE3 ( 14 ) FEE4 ( 15 ) FEE5 ( 16 ) FEE6 ( 17 )
PRIN A ( 00 ) B ( 00 ) C ( 00 ) K ( 00 ) R ( 00 ) T ( 00 ) L ( 00 )
CURR TXN A ( 00 ) B ( 00 ) C ( 00 ) K ( 00 ) R ( 00 ) T ( 00 ) L ( 00 )

PF1=ARMU PF2=ARMS PF3=ARMO PF4=ARMG PF5=ARMC PF6=INQUIRY

RELATED FIELDS

PAYMENT HIERARCHY (A/R)

INT Application priority for interest (finance charge) on A/R accounts.

SVC Application priority for service charges on A/R accounts.

LATE Application priority for late charges on A/R accounts.

NSF Application priority for NSF fees on A/R accounts.

OVLM Application priority for overlimit fees on A/R accounts.

INS Application priority for insurance premiums on A/R accounts.

COLL Application priority for collection expenses on A/R accounts.

RCVY Application priority for recovery expenses on A/R accounts.

MEMB Application priority for membership or annual fees on A/R

accounts.

CURR Application priority for debit transactions received during the

current billing cycle on A/R accounts.

Section 11 - 33
CMS 8.0

PRIN Application priority for debit transactions posted during prior

billing cycles on A/R accounts.

FEE 1-6 Application priority for user-defined fees on A/R accounts.

PAYMENT HIERARCHY (P/L)

INT Application priority for interest (finance charge) on P/L accounts.

SVC Application priority for service charges on P/L accounts.

LATE Application priority for late charges on P/L accounts.

NSF Application priority for NSF fees on P/L accounts.

OVLM Application priority for overlimit fees on P/L accounts.

INS Application priority for insurance premiums on P/L accounts.

COLL Application priority for collection expenses on P/L accounts.

RCVY Application priority for recovery expenses on P/L accounts.

MEMB Application priority for membership or annual fees on P/L

accounts.

CURR Application priority for debit transactions received during the

current billing cycle on P/L accounts.

PRIN Application priority for debit transactions posted during prior

billing cycles on P/L accounts.

FEE 1-6 Application priority for user-defined fees on P/L accounts.

 The PAYMENT HIERARCHY (P/L) fields default to 00. If these

fields are zero, CMS uses the values assigned to the
PAYMENT HIERARCHY (A/R) fields for each component.

Section 11 - 34
 Payment Processing

APPLICATION METHOD
The PAYMENT HIERARCHY determines how a payment is applied to the BNP
components within a particular credit plan. When there are multiple credit plans
on an account and the payment is non-directed, the APPLICATION METHOD on
ARML12 determines whether the payment is applied to the BNP components:
Across all plans according to plan priorities and adhering strictly to the
payment hierarchy (method H)
Across all plans according to plan priorities and using the payment hierarchy
except for principal and current transactions, which are always satisfied last
(methods B, C, and D)
One plan at a time according to the payment hierarchy, satisfying all BNP
components in the highest priority plan, then all BNP components in the
second highest priority plan, and so on (method P).

PLAN PAYMENT APPLICATION PRIORITIES

Plan priorities for payment application purposes are defined on:

The Credit Plan Master record (ARMC06)
The Logo record (ARML14).
Bankcard logos are restricted to using the Credit Plan Master priorities. Private
label logos can use either the plan-level or logo-level priorities for applying non-
normal payments. Use the PAYMENT APPLICATION LVL field on ARML14 to specify
which priorities will be in effect for the logo.

Section 11 - 35
CMS 8.0

APPLICATION METHOD AND RELATED FIELDS

ARML PAGE 12

ARML ( ) USER DEFINED TITLE PAGE 12 08/29/1999

LOGO RECORD 11:38:29
ORGANIZATION 100 LOGO 112
TRANSACTION CONTROL POST DATED BACK DATED STMTS
DEBITS ( W ) ( 365 ) ( A ) ( 365 ) ( W )
CREDITS ( W ) ( 365 ) ( A ) ( 365 ) ( W )
TRANSFER TXN ( O )
DD/DC/ACH ALLOWED ( N ) DD/ACH PAYMENT FLAG ( D )
DD/ACH CYCLE DUE ( 0 ) DC/ACH CYCLE DUE ( 0 )

CARD ACTIVATION
NEW ( Y ) REISSUE ( Y ) PHONE NUMBER ( 4076608807 )
ADDITIONAL ( Y ) REPLACEMENT ( Y ) CRITERIA TABLE ( 00000 )
PAYMENT HIERARCHY APPLICATION METH ( C ) PRINCIPAL PRO RATA ( N )
A/R: INT ( 01 ) SVC ( 04 ) LATE ( 06 ) NSF ( 08 ) OVLM ( 10 ) INS ( 13 )
COLL ( 11 ) RCVY ( 12 ) MEMB ( 15 ) CURR ( 17 ) PRIN ( 16 )
FEE1 ( 02 ) FEE2 ( 03 ) FEE3 ( 05 ) FEE4 ( 07 ) FEE5 ( 09 ) FEE6 ( 14 )

P/L: INT ( 01 ) SVC ( 02 ) LATE ( 03 ) NSF ( 04 ) OVLM ( 05 ) INS ( 06 )

COLL ( 07 ) RCVY ( 08 ) MEMB ( 09 ) CURR ( 10 ) PRIN ( 11 )
FEE1 ( 12 ) FEE2 ( 13 ) FEE3 ( 14 ) FEE4 ( 15 ) FEE5 ( 16 ) FEE6 ( 17 )
PRIN A ( 00 ) B ( 00 ) C ( 00 ) K ( 00 ) R ( 00 ) T ( 00 ) L ( 00 )
CURR TXN A ( 00 ) B ( 00 ) C ( 00 ) K ( 00 ) R ( 00 ) T ( 00 ) L ( 00 )

PF1=ARMU PF2=ARMS PF3=ARMO PF4=ARMG PF5=ARMC PF6=INQUIRY

RELATED FIELDS

APPLICATION Code that determines the method of payment application. The

METHOD values are:
B = Billed-not-paid components, then principal,
then current cycle transactions, across all
plans. Payment is applied to all components
across all plan segments based on plan
priority. For this method, payments to
principal and current transactions are always
last regardless of hierarchy. All payments are
applied in this manner.
Once the billed-not-paid amounts are paid,
the PRINCIPAL PRO RATA setting is used to
determine whether any remaining payment
will be applied on a pro rata basis across all
plan segments (regardless of priorities) or
applied on a first-in-first-out (FIFO) basis
using the payment priority.

Section 11 - 36
 Payment Processing

B-N-P Hierarchy Priority 1 Plan Priority 2 Plan Priority 3 Plan

SVC 1 1 2 3

INT 4 4 5 6

PRIN 3 7 8 9

CURR TXN 2 10 11 12

C = Billed-not-paid components across all plans,

then to principal and current cycle
transactions by plan based on plan priority.
Payment is applied to the billed-not-paid
components, except principal and current
transactions, across all plan segments based
on the PAYMENT HIERARCHY and plan priority,
then applied to principal and current
transactions within each plan based on plan
priority.
For this method, payments to principal and
current transactions are always last regardless
of hierarchy. All regular payments,
underpayments, and overpayments are
applied in this manner.

B-N-P Hierarchy Priority 1 Plan Priority 2 Plan Priority 3 Plan

SVC 1 1 2 3

INT 4 4 5 6

PRIN 3 7 9 11

CURR TXN 2 8 10 12

Section 11 - 37
CMS 8.0

D = Billed-not-paid components across all plans

based on plan priority, then to principal and
current transactions (regardless of payment
hierarchy) based on the PRIN and CURR TXN
for the different plan types (A, B, C, K, R, T).
Payment application is across all plans; then
down for billed-not-paid components based
on plan priority established in the Logo
record or Credit Plan Master. This forces the
prior and current principal to be paid last
regardless of assigned hierarchy.
Prior and current principal are then paid
based on the table established in the Logo
record.

 Refer to PRIN and CURR TXN descriptions for additional

information associated with this application method.

B-N-P Hierarchy Priority 1 Plan Priority 2 Plan Priority 3 Plan

SVC 1 1 2 3

INT 4 4 5 6

PRIN 3 3* 4* 1*

CURR TXN 2 5* 6* 2

*priority based on the Logo record table

Section 11 - 38
 Payment Processing

H = Billed-not-paid components, including

principal and current cycle transactions,
across all plans. Payment is applied to all
components as indicated on the PAYMENT
HIERARCHY table across all plan segments
based on the plan priority established in either
the Logo or Credit Plan Master. All regular
payments, underpayments, and overpayments
are applied in this manner.

B-N-P Hierarchy Priority 1 Plan Priority 2 Plan Priority 3 Plan

SVC 1 1 2
3
CURR TXN 2 4 5
6
PRIN 3 7 8
9
INT 4 10 11
12

P = Plan priority, then PAYMENT HIERARCHY.

Payment is applied to all billed-not-paid
components, including principal and current
transactions, in the highest priority plan first.
(Default)
All regular payments, underpayments, and
overpayments are applied in this manner.

B-N-P Hierarchy Priority 1 Plan Priority 2 Plan Priority 3 Plan

SVC 1 1 5 9

CURR TXN 2 2 6 10

PRIN 3 3 7 11

INT 4 4 8 12

Section 11 - 39
CMS 8.0

PRINCIPAL PRO Code that determines the application of a payment (when an

RATA amount is greater than the billed-not-paid amount) to principal.
The values are:
Y = Yes, apply the payment to principal on a pro
rata basis across plan segments after
satisfying all the billed-not-paid amounts
(regardless of priorities)
N = No, apply the payment to principal on a FIFO
basis using the payment priority (regardless
of priorities). (Default)

 This field applies only when APPLICATION METH is B.

Section 11 - 40
 Payment Processing

PRIN AND CURR TXN

If the APPLICATION METH field is D, the following seven fields—PRIN: A through PRIN: L—
control how CMS applies payments to prior cycle principal for each type of credit plan
on an account. Also, the following seven fields—CURR TXN: A through CURR TXN: L—
control how CMS applies payments to current cycle transactions for each type of credit
plan on an account. Enter a number from 00 to 14 in each field to determine the order for
applying payments to each component by credit plan type. Plan types assigned a value of
00 are paid last. The fields A, B, C, K, R, T, and L identify the credit plan type as defined
on the Credit Plan Master record (PLAN TYPE on ARMC01).

The following restrictions apply when completing the PRIN and CURR TXN fields:
You can assign the same priority number to multiple fields with the following exception:
you cannot assign the same priority number to PRIN and CURR TXN for the same credit
plan type. For example, PRIN: A and CURR TXN: A cannot have the same priority number.
When you assign the same priority numbers to multiple credit plan types, CMS
determines which credit plan to pay first using the payment priority controls in the Credit
Plan Master record (PMNT PRI/CNTRL on ARMC06).

You must enter a priority number for each plan type, even if you do not use that plan type
or have any Credit Plan Master records assigned that plan type.

PRIN: A Number that indicates the priority for applying payments to

principal for access checks (cash) credit plans (PLAN TYPE on
ARMC01 is A). The values are 00–14.

PRIN: B Number that indicates the priority for applying payments to

principal for balance transfers (retail) credit plans (PLAN TYPE on
ARMC01 is B). The values are 00–14.

PRIN: C Number that indicates the priority for applying payments to

principal for cash credit plans (PLAN TYPE on ARMC01 is C). The
values are 00–14.

PRIN: K Number that indicates the priority for applying payments to

principal for access checks (retail) credit plans (PLAN TYPE on
ARMC01 is K). The values are 00–14.

PRIN: R Number that indicates the priority for applying payments to

principal for retail credit plans (PLAN TYPE on ARMC01 is R). The
values are 00–14.

Section 11 - 41
CMS 8.0

PRIN: T Number that indicates the priority for applying payments to

principal for balance transfers (cash) credit plans (PLAN TYPE on
ARMC01 is T). The values are 00–14.

PRIN: L Number that indicates the priority for applying payments to

principal for loan credit plans (PLAN TYPE on ARMC01 is L). The
values are 00–14.

CURR TXN: A Number that indicates the priority for applying payments to
current cycle transactions for access checks (cash) credit plans
(PLAN TYPE on ARMC01 is A). The values are 00–14.

CURR TXN: B Number that indicates the priority for applying payments to
current cycle transactions for balance transfers (retail) credit plans
(PLAN TYPE on ARMC01 is B). The values are 00–14.

CURR TXN: C Number that indicates the priority for applying payments to
current cycle transactions for cash credit plans (PLAN TYPE on
ARMC01 is C). The values are 00–14.

CURR TXN: K Number that indicates the priority for applying payments to
current cycle transactions for access checks (retail) credit plans
(PLAN TYPE on ARMC01 is K). The values are 00–14.

CURR TXN: R Number that indicates the priority for applying payments to
current cycle transactions for retail credit plans (PLAN TYPE on
ARMC01 is R). The values are 00–14.

CURR TXN: T Number that indicates the priority for applying payments to
current cycle transactions for balance transfers (cash) credit plans
(PLAN TYPE on ARMC01 is T). The values are 00–14.

CURR TXN: L Number that indicates the priority for applying payments to
current cycle transactions for loan credit plans (PLAN TYPE on
ARMC01 is L). The values are 00–14.

Section 11 - 42
 Payment Processing

PLAN PAYMENT APPLICATION PRIORITIES

ARMC PAGE 06

ARMC ( ) USER DEFINED TITLE PAGE 06 08/26/1999

CREDIT PLAN MASTER 10:20:41

ORG 100 PLAN 10002

ACT RECAP CONTROL RPT 1 DTL RPT 2 DTL RPT 3 DTL RPT 4 DTL
( 000 ) ( N ) ( 000 ) ( N ) ( 000 ) ( N ) ( 000 ) ( N )

INSURANCE I/E PRD 1 PRD 2 PRD 3 PRD 4 PRD 5 PRD 6

( ) ( ) ( ) ( ) ( ) ( ) ( )

PMNT PRI/CNTRL - NORMAL ( 03 ) ( F ) OVER ( 03 ) ( F ) UNDER ( 03 ) ( F )

AMORTIZATION TABLES
PRINCIPAL 000 INTEREST 000 INSURANCE 000
FEE 1 PLAN14001 000 USER FEE 2 ACCT 000
FEE 3 PLAN14002 000 USER FEE 4 LRF 000
USER FEE 5 LRF 000 FEE 6 PLAN14003 000
STLMT SYSTEM DATE LTR ( AAA ) STLMT SELECTED DATE LTR ( BBB )

PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

RELATED FIELDS

PMNT PRI/CNTRL

NORMAL Two-part field that indicates the priority for assigning normal
payments to multiple credit plans on the same account. A
payment is considered normal when the amount paid equals the
amount requested.

OVER Two-part field that indicates the priority for assigning over
payments to multiple credit plans on the same account. A
payment is considered an over payment when the amount paid is
greater than the amount requested.

UNDER Two-part field that indicates the priority for assigning under
payments to multiple credit plans on the same account. A
payment is considered an under payment when the amount paid is
less than the amount requested.

Section 11 - 43
CMS 8.0

The first part is a priority number. The values are 00–99. The
value 01 indicates the highest priority, 02 the next highest, and so
on until 99, which is the lowest priority.

The second part is a code that indicates the priority for credit
plans with the same priority number. The values are:
F = FIFO (First in, first out by plan open date)
L = LIFO (Last in, first out by plan open date)
D = FIFO for deferred plans (First in, first out by
interest, insurance, billing, or payment start
date)
E = LIFO for deferred plans (Last in, first out by
interest, insurance, billing, or payment start date).

Notes___________________________________________

Section 11 - 44
 Payment Processing

PAYMENT APPLICATION LEVEL AND LOGO-LEVEL APPLICATION PRIORITIES

ARML PAGE 14

ARML ( ) ** USER DEFINED TITLE ** PAGE 14 11/13/2001

LOGO RECORD 13:30:20
ORGANIZATION 100 LOGO 101
PROCESSING CONTROL OPTIONS (CONT.) BILL THRESH ( 000001000 )
MIN REAGE MONTHS ( 12 ) REAGE PERIOD ( 036 ) REAGE PERIOD LIMIT ( 2 )
PROC CONTROL LEVEL ( O ) PRE-PAY ALLOWED ( 2 ) PRE-PAY MONTHS ( 03 )
BILL EVEN AMOUNTS ( Y ) BILL OVER LIMIT ( N )
SKIP ALLOWED ( Y ) SKIP SELECTED ( N ) SKIP EXPIRES ( )
REAGED AT ( C ) ( 030 ) REAGE FREQ ( 24 ) REAGE CD LVL ( 4 )
FLEX BILL MONTHS ( 00 ) PREPAY ZERO ( 1 ) PLAN PAYMENT ( F )
PAYMENT VARIANCE ( A ) ( 000000500 ) DELINQUENCY INTEREST LEVEL ( 4 )
PAYOFF VARIANCE A ( 000001000 ) P ( 0000000 ) MAX ( 000000000 )
QUAL PMT A ( 000002000 ) P ( 9000000 ) NOM BILL OVERLIMIT ( 1 )
QUAL PAYMENT RESET % ( 090 ) C/O CREDIT APPLICATION F/L/B ( F )
PAYMENT APPLICATION LVL ( P ) MIN DELQ AMT ( 00000000000005000 )
UNDER PAYMENT 1-4 F/L OVER PAYMENT 1-4 F/L
REVOLVING ( 1 ) ( F ) REVOLVING ( 1 ) ( F )
DEFERRED INT-F/C ( 1 ) ( F ) DEFERRED INT-F/C ( 1 ) ( F )
DEFERRED PAYMENT ( 1 ) ( F ) DEFERRED PAYMENT ( 1 ) ( F )
DEFERRED BILLING ( 1 ) ( F ) DEFERRED BILLING ( 1 ) ( F )
OTB: CR BAL ( 0 ) DISP ( 0 ) LOAN AMT ( 1 )
AUTH DAYS - APP ( 10 ) AUTH DAYS - DECL ( 15 ) AUTH VARIANCE ( 1500000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMS PF3=ARMO PF4=ARMG PF5=ARMC PF6=INQUIRY

RELATED FIELDS

PAYMENT Code that indicates whether CMS applies payments by plan

APPLICATION number priority defined on the Credit Plan Master record or by
LVL credit plan type defined on the Logo record. The values are:
L = Logo level using credit plan type (Default)
P = Credit plan level by plan number priority; this
value is required if the Logo record processes
bankcard accounts (TYPE OF ACCOUNT on
ARML01 is X).

UNDERPAYMENT AND OVERPAYMENT

The following fields—from REVOLVING 1–4 to DEFERRED BILLING F/L—indicate the order in
which CMS applies underpayments and overpayments to these credit plan categories:
regular revolving credit plans, deferred interest credit plans, deferred payment credit
plans, and deferred billing credit plans.

Section 11 - 45
CMS 8.0

1-4 / F/L Two-part field that indicates the order in which CMS applies
underpayments and overpayments to regular revolving, deferred
interest, deferred payment, or deferred billing credit plans
assigned to accounts processed by this logo. The fields listed
under UNDER PAYMENT determine the order in which CMS
attempts to satisfy the total amount due for underpayments. The
fields listed under OVER PAYMENT determine the order in which
CMS applies the portion of the payment that exceeds the
requested amount.

The first part (1–4) is a number that indicates the priority. The
values are 1–4, where 1 is the highest priority and 4 is the lowest
priority. If two or more credit plan categories (revolving, deferred
interest, deferred payment, or deferred billing) have the same
priority number, CMS prorates payments between the categories.
If an account has multiple credit plans within the same category,
the F/L field indicates the order to apply the payment to the credit
plans.

The second part (F/L) is a code that indicates the order in which
CMS applies payments. The values are:
F = FIFO (first in, first out) (Default)
L = LIFO (last in, first out).

Section 11 - 46
 Payment Processing

CHARGE-OFF CREDIT APPLICATION

ARML PAGE 14

ARML ( ) ** USER DEFINED TITLE ** PAGE 14 11/13/2001

LOGO RECORD 13:30:20
ORGANIZATION 100 LOGO 101
PROCESSING CONTROL OPTIONS (CONT.) BILL THRESH ( 000001000 )
MIN REAGE MONTHS ( 12 ) REAGE PERIOD ( 036 ) REAGE PERIOD LIMIT ( 2 )
PROC CONTROL LEVEL ( O ) PRE-PAY ALLOWED ( 2 ) PRE-PAY MONTHS ( 03 )
BILL EVEN AMOUNTS ( Y ) BILL OVER LIMIT ( N )
SKIP ALLOWED ( Y ) SKIP SELECTED ( N ) SKIP EXPIRES ( )
REAGED AT ( C ) ( 030 ) REAGE FREQ ( 24 ) REAGE CD LVL ( 4 )
FLEX BILL MONTHS ( 00 ) PREPAY ZERO ( 1 ) PLAN PAYMENT ( F )
PAYMENT VARIANCE ( A ) ( 000000500 ) DELINQUENCY INTEREST LEVEL ( 4 )
PAYOFF VARIANCE A ( 000001000 ) P ( 0000000 ) MAX ( 000000000 )
QUAL PMT A ( 000002000 ) P ( 9000000 ) NOM BILL OVERLIMIT ( 1 )
QUAL PAYMENT RESET % ( 090 ) C/O CREDIT APPLICATION F/L/B ( F )
PAYMENT APPLICATION LVL ( P ) MIN DELQ AMT ( 00000000000005000 )
UNDER PAYMENT 1-4 F/L OVER PAYMENT 1-4 F/L
REVOLVING ( 1 ) ( F ) REVOLVING ( 1 ) ( F )
DEFERRED INT-F/C ( 1 ) ( F ) DEFERRED INT-F/C ( 1 ) ( F )
DEFERRED PAYMENT ( 1 ) ( F ) DEFERRED PAYMENT ( 1 ) ( F )
DEFERRED BILLING ( 1 ) ( F ) DEFERRED BILLING ( 1 ) ( F )
OTB: CR BAL ( 0 ) DISP ( 0 ) LOAN AMT ( 1 )
AUTH DAYS - APP ( 10 ) AUTH DAYS - DECL ( 15 ) AUTH VARIANCE ( 1500000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMS PF3=ARMO PF4=ARMG PF5=ARMC PF6=INQUIRY

RELATED FIELDS

C/O CREDIT Code that indicates how global charge-off credits affect the
APPLICATION balances of multiple credit plans on an account. The values are:
F/L/B F = FIFO (Default)
L = LIFO
B = Balance.

If this field is B (balance), CMS tries to pay off the credit plan
with the largest balance, then tries to pay off the credit plan with
the next highest balance, and so on for the remaining credit plans
on an account.

Section 11 - 47
CMS 8.0

PAYMENT HOLD
Certain cases of fraud involve a customer who charges a large balance and makes
a large payment to cover the balance, but the customer’s check is drawn on an
account with insufficient funds to cover the payment. After your institution posts
the payment, but before the check is returned as an NSF item, the customer
charges another large balance, which ends up as an even greater loss to your
institution.
The Payment Hold feature helps to prevent non-sufficient funds (NSF) check
fraud by holding an account’s open-to-buy amount until the payment check has
cleared. CMS enables you to post payments to immediately reduce outstanding
balance amounts, prevent delinquency rolls, and satisfy interest free periods, but
the posted payments do not update the open-to-buy amounts until a specified
number of days has elapsed.
You can set the parameters for holding payments on the Logo record. A held
payment will automatically generate an outstanding debit authorization for the
payment amount. This debit authorization will be included in the calculation of
the OTB.

Section 11 - 48
 Payment Processing

ARML PAGE 36

ARML ( ) * USER DEFINED TITLE * PAGE 36 11/20/2001

LOGO RECORD 10:14:44
ORGANIZATION 100 LOGO 101
PAYMENT HOLD:
DAYS ( 007 ) MIN PMT ( 00000000000001000 ) PMT HOLD DEFAULT ( 1 )
PAYMENT HOLD TRANSACTION CODES:
( 030 ) ( 033 ) ( 036 ) ( 039 ) ( 000 ) ( 000 ) ( 000 ) ( 000 )
( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 )

INSURANCE SOURCE CODE DEFINITION

( ST ) ( STATEMENT INSERT ) ( MC ) ( MARKETING CALL )
( PS ) ( POINT OF SALE ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )

CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7

PF1=ARMU PF2=ARMS PF3=ARMO PF4=ARMG PF5=ARMC PF6=INQUIRY

RELATED FIELDS

PAYMENT HOLD
The following fields—DAYS to PAYMENT HOLD TRANSACTION CODES—establish the
parameters for the payment hold feature. The payment hold feature allows you to hold a
large payment for a specific number of days before increasing the open-to-buy amount of
an account.

DAYS Number of days a check hold authorization remains on file and

reduces the open-to-buy amount of an account. The values are
000–999, with 000 or 999 indicating no holds (outstanding
authorizations) are placed on accounts for check payments.

MIN PMT Minimum check payment in whole monetary units to activate

check hold processing. Default is zero, indicating any check
payment amount activates check hold processing.

Section 11 - 49
CMS 8.0

PMT HOLD Code that indicates the default payment hold setting for Account
DEFAULT Base Segment records (PAYMENT HOLD on ARMB05). The values
are:
0 = Payment hold processing is not in effect
(Default)
1 = Payment hold processing is in effect.

This is a default for new accounts only.

PAYMENT HOLD Transaction codes that indicate a check payment. Any transaction
TRANSACTION entering CMS with this transaction code generates an outstanding
CODES authorization to reduce the open-to-buy amount for the number of
days specified in the DAYS field. Default is 000.

Any transaction specified must exist on the Monetary Transaction

Control record (ARMX08) and must be assigned a payment logic
module (30, 33, 36, or 39).

 Maintenance to DAYS, MIN PMT, PMT HOLD DEFAULT, or

PAYMENT HOLD TRANS CODES does not affect any existing
holds already on file.

ACCOUNT BASE SEGMENT PAYMENT HOLD FLAG

The payment hold value that you enter at the logo level (PMT HOLD DEFAULT on
ARML36) defaults to the payment hold flag for new accounts (PAYMENT HOLD on
ARMB05). You can change the value at the account level as needed.

Section 11 - 50
 Payment Processing

REVERSING AN OUTSTANDING AUTHORIZATION

The outstanding debit authorization generated by a payment hold can be reversed

in CMS using the Outstanding Authorization Reversal screen (ARRO).
When the debit authorization is reversed, the OTB will immediately increase.

ARRO PAGE 01

ARRO ( ) * USER DEFINED TITLE * PAGE 02a 06/15/1999

MEMO POSTED TRANSACTION REVERSAL 16:06:45

ORGANIZATION 200 LOGO 105 ACCOUNT 0000000000000327044 P

EFF POST CR
DATE DATE AMOUNT TXN PLAN *-------- D E S C R I P T I O N -------*
1110 1110 1,505.00 D605 1 AUTH REQ
PTS=000000000 0 DEPT=1234 REF=10000000010000000010490 AUTH=123456
( R ) SEQ=01 STORE=000000001 SKU=000000000 GLS=9 SALESCLERK=
TKT= P/O= R/REF=00000000000000 ITEM=10490
ORG=000 MER=000000000 CAT=0000 CRD/SEQ=0000000000000000019 0000 INS=XX

*** END OF TRANSACTIONS ***

PF1=XXXX PF2=XXXX PF3=*TOP* PF4=*BOT* PF5=*BWD* PF6=*FWD*

Section 11 - 51
CMS 8.0

PAYMENT HISTORY
CMS has the ability to store up to six occurrences of payment history for an
account. Because of disk space requirements, a flag on the Organization record
controls whether the information is stored in the system.

ARMO PAGE 04

ARMO ( ) USER DEFINED TITLE PAGE 04 08/28/1999

ORGANIZATION RECORD 17:42:16
ORGANIZATION 100

--OPTIONS--
SHORT NAME ( Y ) RES ID ( Y ) RET MAIL ( Y ) PRIOR ADDR ( Y )
BEHAVIOR HSTY ( Y ) FREQ SHOP ( Y ) CLLTRL/SCRTY ( Y ) SVC CHARGES ( Y )
BILL HISTORY ( 1 ) PAY HISTORY ( 1 ) INS HISTORY ( 0 ) CNSLDTD ( 1 )
CSF ACTIVE ( 0 )

MOD CHECK CUSTOMER ( N ) MOD CHECK ACCOUNT ( N ) MOD CHECK STORE ( N )

STMT RETENTION IND ( 0 ) TOTAL # OF STMTS ( 12 ) # DETAIL STMTS ( 12 )

MULTISTREAM LTR ORG ( 000 )

PF1=ARMU PF2=ARMS PF3=ARML PF4=ARMG PF5=ARMC PF6=INQUIRY

RELATED FIELDS

PAY HISTORY Flag that indicates whether CMS maintains payment history for
the last six billing occurrences on accounts within this
organization. The values are:
0 = Do not maintain payment history (Default)
1 = Maintain payment history for the last six
payments.

Section 11 - 52
 Payment Processing

The Account Payment History (ARPH) screen displays the following information
for the last six payments:
Date payment posted Recency delinquency
Payment amount posted Reversal flag
Pre-pay amount applied Account total due
Contractual delinquency Payment delinquency buckets.
Delinquency paid information shows the amounts that were cleared for each
delinquency bucket by the payment. Credit plan payment history displays the
amount posted to the principal and billed-not-paid buckets as well as the amounts
remaining in each bucket after the payment was posted.
Payment reversals restore the buckets and adjust the account’s cycle due. You
may reverse any of the last six payments.
If this feature is not active (PAY HISTORY on ARMO04 is 0), you can reverse only
the latest payment on an account.

 The Account Payment History screen (ARPH) is covered in the

CMS User Course.

Section 11 - 53
CMS 8.0

PAYMENT REVERSALS
There are two types of payment reversals available in CMS:
Normal reversal
Non-sufficient fund (NSF) reversal.
Use the normal reversal when you reverse payments for any reason other than
NSF reversals. Use the NSF reversal when your customer’s bank returns a
payment check for non-sufficient funds.

PAYMENT REVERSAL TRANSACTIONS

You can enter payment reversals through the Monetary Batch Transactions
screens (ARAT) or the Payment Transaction Entry screens (ARAP). The
transactions used for payment reversals must be associated with the following
logic modules:
Logic Module 31: Non-directed payment reversals
Logic Module 32: Non-directed payment reversals with NSF fee
Logic Module 34: Directed payment reversals
Logic Module 35: Directed payment reversals with NSF fee
Logic Module 37: Prepayment reversal
Logic Module 38: Prepayment reversal with NSF fee
Logic Module 40: Force post payment reversal
Logic Module 41: Force post payment reversal with NSF fee.

REVERSAL PROCESSING

Matched Payment Reversal, Payment History Active:

If the payment reversal transaction amount exactly matches the amount of the
posted payment on the History file (amount and date), and is not already reversed,
the reversal transaction posts and the account’s delinquency buckets are restored.
The BNP buckets are restored as they were prior to the payment and the total due
is updated. The CYCLE DUE may increase as well.
Matched Payment Reversal, Payment History Inactive:
If the PAY HISTORY is set to 0, then the system will reverse only the latest payment
transaction. The payment amount will be added to principal and the payment
amount placed in the oldest delinquency bucket.

Section 11 - 54
 Payment Processing

Non-Matched Payment Reversal, Payment History Active:

If the payment reversal transaction amount does not match any of the last six
payments the transaction rejects.
If the payment transaction amount exactly matches the amount of the posted
payment on the History file but the payment was reversed previously, the
transaction will reject with a Posting Flag 19 (invalid payment reversal).
Non-Matched Payment Reversal, Payment History Inactive:
If the payment reversal transaction amount does not match the last payment and
there is only one plan segment, the transaction posts but does not restore the
delinquency buckets, and an Audit Exception Message is printed.
If the payment reversal transaction amount does not match last payment and there
are multiple plan segments, the transaction will reject with a Posting Flag 19
(invalid payment reversal).

OTHER PAYMENT PROCESSING CONSIDERATIONS

DIRECT DEBIT

CMS provides the ability to complete payment transactions using direct debit
(DD) or automated clearinghouse (ACH) functions. Four direct debit/ACH
payment options are available to customers: minimum payment amount calculated
by CMS, fixed payment amount nominated by customer, percentage of account
balance nominated by customer, full statement balance.

DIRECT CREDIT

Direct credit processing allows a customer to request that a credit be sent to

another account outside CMS. To pay for this credit, the customer’s CMS
account is debited for the amount of the direct credit.

 Direct Debit and Direct Credit are covered in the CMS Control
Records Special Topics Course.

Section 11 - 55
CMS 8.0

REFERENCE LIST

ONLINE

ARMA - Credit Plan Segment

ARMB - Account Base Segment
ARMC - Credit Plan Master
ARML - Logo record
ARMO - Organization record
ARMP - Payment Transaction Entry
ARMT - Monetary Batch Transactions
ARMY - Account Control Table
ARPH - Payment History
ARRO - Outstanding Authorization Reversal

REPORTS

D15 - Audit Exception report

O34 - Outstanding Authorizations
O55 - Payment by Check Holds
R15 - Reject Reentry Batches
R16 - Activity Recap

Section 11 - 56
 Payment Processing

REVIEW

1. Write a “T” in the blank next to a statement if it is true, “F” if it is false.

___ A. A directed payment overrides the payment application rules and

applies the total payment amount to a specific credit plan.
___ B. A pre-payment, if allowed, is treated as an advance payment and
affects the account’s requested payment next month.
___ C. An overpayment is a payment that is greater than the total balance
on the account.
___ D. An underpayment is a payment that is less than the total amount
due.
___ E. A non-directed payment uses the payment application rules to
distribute the payment to the appropriate plans.
___ F. A normal payment is a payment made prior to the payment due
date.
___ G. A force-post payment is a non-directed payment that posts
regardless of the transaction’s effective date or any block codes set
at the account level.

2. What fields on the Logo record specify the order in which a payment will
satisfy the BNP components of a credit plan segment’s balance?
___________________________________________________________

3. Why does CMS provide two sets of these fields?

___________________________________________________________

4. Payment application methods _____, _____, _____, and _____ satisfy

BNP components across plans; method _____ satisfies all BNP
components of the highest priority plan first.

Section 11 - 57
CMS 8.0

5. The plan priority fields are located on which CMS control record?
___________________________________________________________

6. Which field on the Logo record defines the payment application level?
___________________________________________________________

7. The following fields are used to control payment application at the logo
level. Describe the function of each field.
PAYMENT APPLICATION LVL ( L )
UNDER PAYMENT 1-4 F/L OVER PAYMENT 1-4 F/L
REVOLVING ( 4 ) ( F ) REVOLVING ( 4 ) ( F )
DEFERRED INT-F/C ( 1 ) ( F ) DEFERRED INT-F/C ( 1 ) ( F )
DEFERRED PAYMENT ( 2 ) ( F ) DEFERRED PAYMENT ( 2 ) ( F )
DEFERRED BILLING ( 3 ) ( F ) DEFERRED BILLING ( 3 ) ( F )

8. How does the Payment Hold feature decrease an account’s open-to-buy?

___________________________________________________________

9. What field on the Organization record activates the retention of account

payment history for the past six occurrences?
___________________________________________________________

10. What is restored by a payment reversal?

___________________________________________________________

Section 11 - 58