Defaults – Payment Defaults

General

AutoPal gives you the ability to set defaults in several different sections of the software, making it easier for you to cater the system to your needs! One section of particular use is the “Payment Defaults”. This tab allows you to set the default settings that appear on the “Payments” tab while logging payments.

For an overview of the defaults tab, please review the following article: Defaults – Overview.

How To

To access the “Payment Defaults”, select Settings > Defaults > Payment Defaults tab.

settings-defaults-payment-defaults

From this page, you will be able to set payment defaults for each combination of “Loan Category”, and “Loan Type”. This allows you to ensure that all loans offered by your company have the correct payment defaults applied.

To assign your payment defaults, select the Loan Category, and Loan Type you would like to assign the defaults to. For the sake of this example, we will be using the Loan Category of “Automobile”, and the Loan Type of “Installment”. To change the defaults, select the Edit Payment Defaults icon, once selected you will be redirected to the following page:

settings-defaults-payment-defaults-save-settings

Directly from this page you will have the ability to set defaults for the following items:

  • Payment Type: The “Payment Type” option is used to determine which waterfall application applies to payments posted to the loan.
    • Regular: A regular payment has the following waterfall application: Due Fees, Due Escrow, Due Hold, Due Interest, Due Discount, and Due Principal. If a partial payment is applied it will still use the same waterfall application. If extra (more than the amount due on the loan) is paid it will always apply towards principal. The date entered in the Payment Date field will be the application date for this payment.
    • Principal: A Principal-only Payment applies directly to loan principal on the date entered into the Payment Date field above. It will not affect amount past due. Depending on your discount calculation options some portion of the payment may apply towards discount.
    • Discount: Discount-only payments will apply fully to the unpaid split discount amount. If more than that amount is paid, the extra will apply as a Principal-only payment. This application is NOT affected by the discount split selection.
    • Fees Only: A Fees-only payment will apply completely towards due fees, if the payment amount is greater than the due fees, then the extra will take the due fees balance negative.
    • P & I: A P&I payment is applied according to the following waterfall application: Due Escrow, Due Hold, Due Interest, Due Discount, and Due Principal. If a partial payment is applied it will still apply with the same application. If extra (more than is past due on the loan) is paid it will always apply towards principal. The date entered in the payment date field above will be the application date of the payment.
    • I & P Only: An I&P Only payment is applied according to the following waterfall application: Due Interest, Due Discount, and Due Principal. If a partial payment is applied it will still apply with the same application. If extra (more than is past due on the loan) is paid it will always apply towards principal. The date entered in the payment date field above will be the application date of the payment.
    • IFP: An IFP payment will apply according to the following waterfall application: Due Interest, Due Fees, Due Escrow, Due Hold, Due Discount, and Due Principal. If a partial payment is applied it will still apply with the same waterfall application. If extra (more than the amount past due on the loan) is paid it will always apply towards principal. The date entered in the payment date field above will be the application date of the payment.
    • IPF: An IPF payment will apply according to the following waterfall application: Due Escrow, Due Hold, Due Interest, Due Discount, Due Principal, Due Fees, Payoff Fees. If a partial payment is applied it will still apply with the same waterfall application. If extra (more than the amount past due on the loan) is paid it will always apply towards principal. The date entered in the payment date field above will be the application date of the payment.
    • Escrow: Escrow payment application will apply payment fully to the “Escrow” account. This will not directly affect the balance on the loan account.
    • Hold: Hold payment application will apply payment fully to the “hold” account. This will not directly affect the balance on the loan account.
    • Reserve: A reserve payment applies like a Regular payment, but is paid out of the reserve held back from a specific Source Company.
    • Charge Off: The charge off is a special payment type used to reduce account balances. For more information on their application and use please see our charge off article here.
  • eCheck Auth Type: This option allows you to determine which authorization type is to be used when processing eCheck type payments. Your default should be based on the type of account you have with your eCheck Merchant. In the majority of situations the WEB option should be selected.
  • Payment Extra Towards: This option will only effect “Between Periods” type loans. In essence, it allows you to select where amounts paid in excess of the amount past due or standard payment amount are applied. Options include: Principal, Next Payment, Hold, Escrow, and Fees.
  • Early Payment: This option will only effect “Between Periods” type loans. Your selection here is used to signify if a payment is being made prior to the scheduled due date or not.
  • Change Service Fee: This selection allows you to determine whether or not a “Service” fee is applied to a loan when payments are made, or not. Generally speaking, this feature is used as a means to recoup merchant processing costs.

Once the necessary defaults have been set, simply select the Save Changes icon to set your defaults.

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