Payment Plan Payment Application Scenarios

Use Case #1: Payment is less than the due amount.

A customer has a subscription for 'Bundle 5G Internet' and has not been paying his last two invoices, past due balance of $300. Below are the invoice details: 

On Feb 25^th, he called and negotiated a payment plan to pay off his outstanding $300 balance starting with his next anniversary statement (March 1^st). The payment plan schedule is as follows:

On March 1^st, a new statement was generated for his March subscription of 'Bundle 5G internet' and a payment plan sequence #1, with total due balance of $210.

On March 22, he makes a payment of $175 without specifying anything (thus payment application will be driven by client-level configuration). The system will allocate payment to due charges as follows:

• First-In-First-Out (FIFO): because the payment plan sequence #1 and invoice #3 are communicated on the same day, the system will prioritize the oldest charge first to be applied.

  Date	Invoice No. / Payment Plan Seq No.	Due	Due Date	Payment	Remaining
  1-Mar-25	Payment Plan Seq #1 (Invoice #1)	$ 60.00	21-Mar-25	$ 60	$ 0
  1-Mar-25	Invoice #3	$ 150.00	21-Mar-25	$ 115	$ 35
  		$ 210.00		$ 175

  Since Invoice #3 is not fully paid by the due date, Aria will evaluate the remaining due amount for dunning.

• First-Due-First-Out (FDFO): because those two charges are due on the same day, payment plan Seq #1 (effectively paying Invoice #1) also takes priority over a new invoice because it is the oldest charge.

  In a different case where the new invoice and payment plan are communicated on different dates and due on different dates, Aria will apply the payment differently.

Use Case #1a: A new invoice and payment plan Seq #1 have different billing dates and due dates.

For example:

In March, Aria communicates the following charges to the customer. While the new invoice is communicated earlier than payment plan Seq #1, it is due later. Below are the details:

On March 22, he makes a payment of $175 without specifying anything. Aria will apply payment to due charges as follows:

• First-In-First-Out (FIFO): Aria will apply $175 payment in the following order:

  Date	Invoice No. / Payment Plan Seq No.	Due	Due Date	Payment	Remaining
  1-Mar-25	Invoice #3	$ 150.00	21-Mar-25	$ 150	$ -
  5-Mar-25	Payment Plan Seq #1 (Invoice #1)	$ 60.00	10-Mar-25	$ 25	$ 35.00
  		$ 210.00		$ 175

• First-Due-First-Out (FDFO): because the payment plan sequence #1 is due earlier, Aria will prioritize it for payment first. The system will apply the $175 payment received on March 22^nd in the following order:

  Date	Invoice No. / Payment Plan Seq No.	Due	Due Date	Payment	Remaining
  5-Mar-25	Payment Plan Seq #1 (invoice#1)	$ 60.00	10-Mar-25	$ 60	$ -
  1-Mar-25	Invoice #3	$ 150.00	21-Mar-25	$ 115	$ 35.00
  		$ 210.00		$ 175

Use Case #2: Payment exceeds the due amount.

This use case is similar to Use Case #1, but here the customer makes a payment that exceeds the due amount. Below are the details:

A customer has a subscription for 'Bundle 5G Internet' and did not pay his last two invoices, resulting in a past due balance of $300. Below are the invoice details:

The payment plan schedule is as follows:

On March 1^st, Aria generates a new statement for his March subscription of 'Bundle 5G internet' and a payment plan Seq #1, with a total due balance of $210.

On March 22, he makes a payment of $300 without specifying anything. Aria will allocate payment to charges that are due, then future payment plan sequences. 

Since payment plan Seq #2 is fully paid, nothing will be due for the payment plan on the next statement (April 1^st), and only a partial amount is due for Seq #3 on his May 1^st statement.