Payment Schedule

Define Payment Schedule - FINF2860

Purpose	To provide a 'template' used to specify the date or dates for payment or partial payment of a fee, and the conditions which apply in the period prior to each date
Subsystem	Student Finance
Structure	Two blocks	Fee Calendar Instance (context) Fee Payment Schedule
	Back navigation button:	Return to either: Maintain Fee Types (FINF2100) or Maintain Fee Categories (FINF2800) (two levels)
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For a preliminary discussion of payment and other schedules, see Schedules in the Specialist Overview.

A payment schedule provides a 'template' that is the basis for determining when payment of an assessed fee is due - either in full or as a partial payment. Based on this schedule, individual schedules (person payment schedules) are created for each student by running the Process Person Payment Schedules routine, FINJ6111. Dates stored in these individual schedules will appear on statements sent to students and sponsors requesting payment.

Schedule entries. Each record in a schedule represents a date on or before which a payment is due. If there is only one entry, this signifies that full payment is required at a date calculated from information given in the entry. It is generally recommended that HECS fees be confined to a single entry (see further details below).

However, some fees may be paid in instalments. An entry is set up for each instalment, giving the proportion of the full amount that is payable at a date determined by that entry.

An entry can include a discount and discount conditions that apply over the period represented by the entry. It is also possible to specify a minimum amount payable.

Setting up entries. Entries in a payment schedule can be set up in one of three ways:

with 'fixed dates' only. These are selected from instances of one or more date aliases already defined in the Calendar subsystem

as offsets signifying a number of days after a notification date supplied by the Process Person Payment Schedules routine (FINJ6111)

with fixed dates and offsets used in combination in one entry.

If one fixed date is used, then all entries in the same schedule must include a fixed date.

Combination entries. When actual dates are calculated in FINJ6111 using 'combination' fixed date and offset entries in the present schedule, the following applies:

with a 'one entry' schedule, payment is due at whichever date is earliest. (Example: Scenario 1)
where there are several entries, a date calculated by offset is used where possible. If this date is later than the fixed date, the current entry will be disregarded and a subsequent entry will apply, unless this would disadvantage the student. (Example: Scenarios 2 and 3)

Levels and overrides. Payment schedules can be specified at any of the three levels, with implications as discussed in the Levels section of Special Topics. But they can only be at two levels concurrently, as follows:

at FTCI level and FCCI level concurrently, in which case the schedule at the FTCI level overrides that at the FCCI level for the corresponding fee only
at FCCI level and FCFL level concurrently, in which case the schedule at the FCFL level overrides that at the FCCI level for the corresponding fee only.

In both these cases, fees without schedules at either FTCI or FCFL level will normally be due according to the category schedule at FCCI level, even if they are in a group with other fees where an override applies. However, note the important exception described under WARNING for HECS and institution fees.

If a fee is not covered by a schedule at any level, payment is due at the notification date - in other words, immediately.

HECS and institution fees. For fees with a system fee type of HECS or a system fee trigger category of INSTITUTN, payment schedules must be at FTCI level.

WARNING: For these two cases, the person payment schedule routine takes no account of schedules at any other level. Lack of a schedule at the FTCI level is taken to mean that no schedule exists, and therefore that the payment is due at the notification date. This is so even where a category which includes the corresponding fees as liabilities has a schedule attached.

HECS fees. It is generally recommended that a HECS fee be confined to a single schedule entry, and a warning is given if more than one entry is recorded. (But see the example below for a possible exception).

Discount information must currently (1998) be set up to cater for government HECS payment options 10 (deferred payment) and 11 (up front payment with discount) where

if the fee is assessed at $666 or more, a partial payment of $500 or more attracts a discount of 25% (ie a minimum payment of $500 is required)
if the assessed amount is less than $666, then full payment (less discount) attracts the discount of 25%.

The example given below reflects the current policy (1998). An indicator in the Maintain Government HECS Payment Options form (ENRF0161) specifies the payment options that attract discount. Under current policy, this allows option 12 to be excluded from discount calculations, while still operating under the same schedule as options 10 and 11, which would both have the indicator set.

Level access. The form is accessed

at FTCI level via the Fee Type Calendars button and then the Payment Schedule button from Maintain Fee Types (FINF2100)
at FCCI level via the Payment Schedules button from Maintain Fee Categories (FINF2800).
at FCFL level via the Fee Liabilities button and then the Fee Payment Schedule button (or FTCI Payment Schedule button) from Maintain Fee Categories (FINF2800).

The FTCI Payment Schedule button is displayed when a schedule exists at FTCI level. The form can still be accessed from FCFL level, but only to display the existing FTCI schedule.

Examples

In a payment schedule, date alias instances (fixed dates) represent the end of a period during which details in that entry apply.

Scenario 1:
Notification date = 26/1/99
Single entry: Date alias instance =31/1/99, Offset days = 10, Charge % = 100%

Payment here is required by 31/1/99, because an entry representing full payment (ie 100% due) always uses the date alias instance as the absolute cutoff.

Scenario 2:
Notification date = 26/1/99
1^st entry: Date alias instance =31/1/99, Offset days = 10, Charge % = 50%
2^nd entry: Date alias instance = 31/3/99, Offset days = no entry, Charge % = 100%

For the 1^st entry, the student should have 10 days to pay the first instalment (50% of the fee) after notification. However, this takes the due date (26/1/99 + 10 days = due date of 5/2/99) past the date alias instance of 31/1/99 specified for this entry. Therefore the instalment entry is ignored, and the student is just asked to pay the full amount (100%) by 31/3/99.

Scenario 3:
Notification date = 25/1/99
1^st entry: Date alias instance =31/1/99, Offset days = 10, Charge % = 50%
2^nd entry: Date alias instance = 31/3/99, Offset days = 5, Charge % = 100%

For the 1^st entry, the student should have 10 days to pay the first instalment after notification. However, this takes the due date (25/1/99 + 10 days = due date of 4/2/99) past the date alias instance of 31/1/99 specified for this entry. The next entry is tested. But here, the student would have to pay even earlier (25/1/99 + 5 days = due date of 30/1/99). So the 1^st entry fixed date of 31/1/99 is used as the due date for the first instalment. The balance is due 5 days after the start of the period represented by the 2^nd entry - i.e. on 6/2/99.

HECS fees

This is an example of setting up a single entry schedule to cater for discount on HECS fees (reflecting policy current in 1998):

Date alias instance (census date) = 31/3/99
Offset = 14 days
Charge % = 100%
Discount % = 25%
Discount Full Payment = indicator set
Discount Min Payment = 500.00
All other fields blank.

This indicates that the full fee - less discount where applicable - should be paid 14 days after notification or by the census date (100% by 31/3/99), whichever is sooner.

If the full amount assessed - less discount - is paid (Discount Full Payment indicator set), discount applies to any amount.

If only a partial payment is made, the payment must be over $500 to benefit from the discount. This means that the assessed amount must be $666 or over ($666 less 25% discount = $500).

Possible additional entry

To rectify an error, a student may exceptionally be assessed for HECS, or their existing HECS liability may be re-assessed (up or down), after the census date. With a single entry, the discount applicable at the census date still applies. (Note that this is only true for HECS fees. For other fees, discounts will not apply if assessment falls outside the period(s) covered by the entry or entries.). The fee will be payable immediately.

To allow a future payment due date in these circumstances, institutions may chose to record an additional schedule entry after the census date entry. It is recommended that this entry takes the same form as the first, with both a date alias instance and offset days recorded. Without a date alias instance as a final cutoff, the due date could potentially fall after the end date recorded for processing in the fee period.

Even if two HECS entries are recorded in this schedule, a student will only ever have one person payment schedule for HECS. Adjustments will be made to that record as necessary.

The Fee Calendar Instance block identifies the fee period and level for which the schedule is relevant. For a schedule at FTCI level, the fee category is blank. At FCCI level, the Fee Type is blank. At FCFL level, there are entries in both Fee Type and Fee Category fields.

The currency and the charge method are displayed if available to the calling form.

Rules and Notes:

Use the Fee Payment Schedule block to record one or more entries representing payment due dates.

Records can be entered as

all based on date aliases, with or without offsets, or
all based on offset days from the notification date, with no date aliases.

A charge % must be entered, but all other fields are optional.

Where a discount applies, the discount can either be entered as a percentage of the assessed amount using the discount % field; or as a fixed currency amount whatever the assessment, using the discount amount field. (Note that tax is calculated on the discounted amount, not the assessed amount).

If the discount full payment indicator is selected, a discount will apply on receipt of the total expected payment for each entry. Alternatively, a discount minimum payment value gives the least amount needed (inclusive of tax, where applicable) to secure a discount.

The intention of the minimum amount due field is to avoid the payment of small amounts in instalments. For each entry, if the amount to be paid is less than the value of this field, the entry is ignored and the next entry becomes applicable.

The start date and end date for each entry are supplied by the system and indicate the inclusive period during which the entry applies. For the first entry in the schedule, the start date is set to the start date alias instance attached to the calendar instance for the schedule. For subsequent entries, the start date is the day after the previous entry ends.

The schedule for fees with a system fee type of HECS or a system fee trigger category of INSTITUTN must be specified at FTCI level.

Where several records comprise the schedule, entries in Charge % must be progressive (e.g. 1^st record, 40%; 2^nd record, 70%; 3^rd record 100%).

The last record (whether the only one, or last in the series) must have a Charge % of 100.00. More than one entry can be set up for 100%.

If one date alias instance (fixed date) is used, all records must use date alias instances, but these can be combined with offsets.

A date alias can be used more than once. An instance can be used more than once in combination with different offsets.

Suggested 'minimum payment' strategy - an example:
For a payment in three instalments, set a minimum amount of $10 for the first two entries, with the third entry minimum amount left blank. This would mean that the first payment would not be due until either

the date when the calculated instalment amount for the schedule entry was $10 or more, or
the last entry was reached.

Warning 'lamps' advising that exceptions exist at another level are shown at FCCI level if, for any fee in the category,

a schedule exists at any other level, overriding the FCCI schedule for a particular fee

a HECS or institution fee is included in the category (see HECS and institution fees above).

A warning is given if more than one entry is recorded for a HECS fee.

Last Modified on 11 February 2000