Occasionally when posting a payoff type payment, the amount received may be different than the actual payoff. To help facilitate a smooth payoff in these scenarios, AutoPal has an option for a “Custom Payoff”. Scenarios where this may be useful include receiving a payoff that includes several days of extra per-diem, or that includes additional fees not entered into AutoPal. In order to log the actual received amount (whether more or less than the actual payoff) in the system, the payoff type of custom would be utilized.
For further information on posting a standard payoff, please review the following article: Log a Payoff Payment.
To process a Custom Payoff amount, select the payoff option from the Loan Summary, or through the Payments tab.
Regardless of which method is utilized, you will arrive at the “Loan Payoff” screen.
Located in the “Payoff Total” is a series of options that allow you to select the correct payoff amount. By selecting the “Custom Amount” option you will see the following window appear:
From this page, you will have the ability to enter a custom payoff amount. Depending on the amount you enter, the system will apply a corresponding advancement, credit, or charge-off, to ensure the account is brought to a zero balance. If the custom payoff amount is greater than the actual payoff amount, the system will post an advancement to the account. If the custom payoff amount is less than the actual payoff amount, the system will post a corresponding charge-off payment, or credit (note: You have the ability to determine whether a credit or charge-off payment is posted).
To further elaborate on the available options, it should be understood that an advancement acts as a direct principal increase, a credit a direct principal decrease. A charge-off is posted as a payment, though the amount that is posted by the system will be the exact amount necessary to close the account. Which option you elect to use is situational, and will need to be individually investigated to determine which option is the best fit.
Once you have filled out the “Custom Amount” field, you can now select a payment option:
- Log Pmt: Use this option if you are accepting a payment that does not require the use of merchant processing
- Debit: Use this option if you are processing a debit type payment. This method will require the entry of a card number, or the use of an existing payment method
- eCheck: Use this option if you are processing an eCheck (ACH) type payment. This method will require the entry of a bank account number or the use of an existing payment method
- EFT/EBT: Use this option if you are processing a Canadian EFT/EBT payment type through VersaPay. This method will require the entry of a bank account number, or the use of an existing payment method
Once you have made your selection you will be redirected to the Log Payment (Payoff) page. The fields available are dependent on whether or not you are using merchant processing to process the payoff payment. Both options are displayed below:
Logging a Payoff (Log PMT)
Logging a Payoff (Merchant Processing options)
Regardless of which method you choose when posting payoff payments, the options will be similar. The primary differences between logging a standard payment, and using merchant processing is the service fee (card convenience fee), and the “Payment Information” section.
Simply enter the appropriate information into the fields on the page, and select the “Process Payment” icon to finalize the processing.
Once the payment has been processed, you can refer to the transactions tab to see the corresponding advancement / credit / charge-off that was posted to zero the account.
You will notice in the above image, separate entries for both a payoff payment and an advancement, which result in a final $0.00 balance (far right column). You can additionally refer to the Loan Summary of the loan, where you will see the following:
Anytime you see “Amount Due (Paid In Full)” from the loan summary, you can rest assured that the payoff was processed correctly!
After an account has been paid off, you may notice an entry for “Final Interest” on the transactions tab. “Final Interest” is always applied when paying off a loan in AutoPal, and represents the per-diem calculated for the payoff date on a “Between Transactions” type loan.
In this circumstance, you will notice that $1.87 was applied towards final interest representing the per-diem accrued on 12/08/2016.
Loans setup with a “Between Periods” interest application will calculate interest from the last due date, through the current date and apply it as final interest. This is because the “Between Periods” interest application setting applys payments to a due date, and while closing a loan, interest can only be charged to the current date.
You will notice in this circumstance that the “Final Interest” value is $6.77, which is the interest accrued from 12/01/2016 (the last due date) thru 12/08/2016 (the payoff date).