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Setup Debt Collection

Summary

Section titled “Summary”

This guide provides a step-by-step walkthrough for configuring and activating your automated debt collection process. Following these steps ensures a seamless transition from reminders to debt collection.

1. Activate Invoice To Collection Bridge MANDATORY

Section titled “1. Activate Invoice To Collection Bridge MANDATORY”

The transition to debt collection is triggered within your existing reminder logic. To automatically create a Collection Case once an Invoice reaches a specific point in its lifecycle, you need to enable the “Collection Case Bridge” in your existing Invoice Profiles.

  1. Click on the Invoice Profile
  2. Activate the Collection Case Bridge
    1. Navigate and expand the section Debt Collection
    2. Enable the Automatically Create Collection Case checkbox
  3. Add the Collection Event
    1. Navigate to Levels
    2. Add a new Collection Claim Level
      1. Type: Collection Claim
      2. Distribution Channels: Do not enable any distribution channel
      3. Days: Provide information about days to determine when the collection event will occur
      4. Debtor Fee / Client Fee: 0
  4. Click [Save]
  5. You have now successfully ensured that all upcoming invoices using this Invoice Profile will have a Collection event added. A Collection Case will automatically be created once the Invoice reaches the Collection event.

2. Create Default Collection Profiles MANDATORY

Section titled “2. Create Default Collection Profiles MANDATORY”

The Collection Profile defines the legal journey of a debt once a Collection Case is created.

Copy Into a New Collection Profile

Section titled “Copy Into a New Collection Profile”
  1. Go to actions and press [Duplicate].
  2. “New Code”: Insert the code you wish to be used for the new collection profile.
  3. Press [Confirm].
  4. The new collection profile with copied values will now be created, and you will be redirected to it.

General Settings

Section titled “General Settings”
  1. “Collection Profile Code”: Internal Code, must be unique.
  2. “Currency”: For which currency should the collection profile be applicable?
  3. “Description”: Description.
  4. “Settlement Order”: In which order should the collection case parts be settled when paid? CAPITAL_FEE_INTEREST (recommended option): Capital → Reminder → Late Interest CAPITAL_INTEREST_FEE: Capital → Late Interest → Reminder FEE_CAPITAL_INTEREST: Reminder → Capital → Late InterestFEE_INTEREST_CAPITAL: Reminder → Late Interest → Capital INTEREST_FEE_CAPITAL: Capital → Reminder → Late Interest INTEREST_CAPITAL_FEE: Not supported.
  5. “Is Default”: Enabled if the profile is marked as system default.
  6. “Open Cases”: Shows how many open Collection Cases are using this profile.
  7. “Tolerance Capital”: Defines the tolerance limit for capital balance. The system will check if the remaining collection case capital balance after payment is less than the provided limit. If the condition is met, the remaining capital balance will be written off with a “Capital Write-off” event, and the case will be closed. This is useful when you want to avoid having collection cases with small capital remainder open in the accounts receivable.
  8. “Tolerance Fee”: Defines the tolerance limit for the fee balance. The system will check if the remaining collection case fee balance after payment is less than the provided “Tolerance Fee” limit. If the condition is met, the remaining fee balance will be written off with a “Fee Write-off” event. This is usable when you want to avoid having collection cases with small fee remainders open in the accounts receivable.
  9. “Tolerance Late Interest”: Defines the tolerance limit for the late interest balance. The system will check if the remaining invoice interest balance after payment is less than the provided “Tolerance Late Interest” limit. If the condition is met, the remaining late interest balance will be written off with a “Interest Write-off” event. This is usable when you want to avoid having collection cases with small interest remainder open in the accounts receivable.
  10. “Bookkeeping method”: Defines when collection fees are bookkept as income. Invoice Method (the default): the fee is bookkept when it is added to the case. Cash Method: the fee is bookkept when the debtor pays it.

Workflow

Section titled “Workflow”

The workflow represents the different events that the collection case can perform during its lifecycle, from creation to closure.

Add new Workflow Event

Section titled “Add new Workflow Event”
  1. “Event Type”: Select which event type should be created: Collection Claim: The Collection Claim that is legally applicable in your country. Collection Notification: A Collection Notification with an optional fee.Collection To-Do Task: A To-Do task will be created for the Collection Case. Enforcement: An Enforcement Case will be created. Purchase: The Collection Case will be purchased by a buyer of the debt. The ownership of the case will be moved to another Client, and a transfer letter will be distributed to the Debtor. Wait: Nothing happens. Address Lookup: A lookup towards the Debtor will be performed to determine the legal address. If the legal address differs from the information on the Debtor, the address will be updated. The logic also handles cases when the Debtor has moved abroad, is marked for bankruptcy, or is using a protected identity. Credit Check: A credit check will be made and logged on the Debtor. Monitoring Decision: N/A Monitoring: N/A
  2. “After Previous”: How many days after the previous event should this event occur? This is commonly only provided on the first event to define how many days after the creation date the first event should be performed.
  3. “Valid Days”: How many days should the event be valid before expiring? This will be visible as the due date for the event and to the debtor.
  4. “Grace”: How many days after the due date should be a grace period before proceeding to the next event? This is not visible to the debtor but gives them extra days to pay before the next step.
  5. Press [Confirm] to create the Event.
  6. Locate the Icons to the right of the new Event.
  7. “Envelope Icon (Letter)”: Click to enable letter distribution.
    1. A modal will open up with additional settings.
    2. Enable the possibility to perform an address lookup before the letter is distributed.
    3. Provide placeholder data for different languages that will be inserted into the PDF.
  8. “@ (E-mail)”: Click to enable e-mail distribution.
    1. A modal will open up with additional settings.
    2. Provide a header logotype/image that will be in the e-mail content.
    3. Provide placeholder data for different languages that will be inserted into the e-mail content.
    4. Send a test e-mail for the provided Collection Case and e-mail receiver.
  9. “D-Mailbox”: Click to enable digital mailbox (Kivra) distribution.
    1. A modal will open up with additional settings.
    2. Provide placeholder data for different languages that will be inserted into the Kivra content.
    3. Open up a preview of the Kivra sendout with the provided Collection Case.
  10. “SMS”: Click to enable SMS distribution.
    1. A modal will open up with additional settings.
    2. Provide placeholder data for different languages that will be inserted into the SMS content.
    3. Send a test SMS for the provided Collection Case and SMS receiver.
  11. “Partner”: Click to enable external partner distribution. The distribution, along with the needed data, will be exposed in Quiddly’s distribution API endpoints.

Connect To Client

Section titled “Connect To Client”

You can connect the Collection Profile to specific clients & segments for it to apply only on certain conditions.

  1. “Select Client”: Select the Client to which to connect the profile
  2. “Debtor Type”: Define which Debtor Types
  3. “Product”: Define which products
  4. “Debtor Country Code”: Select if it should only be used for specific country codes. Leaving it at “NONE” will apply to all country codes
  5. “Segment”: Select which Debtor Segment. Only applicable if you are using Segments.
  6. Press [Continue] to connect the profile to the client

Make The Profile Live

Section titled “Make The Profile Live”

3. Setup Additional PDF Templates MANDATORY

Section titled “3. Setup Additional PDF Templates MANDATORY”

In addition, there are a couple of PDF templates that can be distributed as part of a Collection Case. Placeholders for those should be set up with the help of our support:

  • Residual Claim PDF
  • Part Payment PDF

4. Setup part payment plan

Section titled “4. Setup part payment plan”

The page is titled Versions Part payment plan and lists every plan version (also called a template). Each row has an Id, Product, Debtor type, Connected clients, Duration, Name and Enabled. Click a row to open and edit the version. Use Add configuration to create a new one: give it a Name, choose Product, Debtor type and Duration, and tick Enable Configuration when it is ready. Creating, changing and deleting versions each need a right, see Rights, roles and users and the rights catalogue.

A version is available only while Enable Configuration is ticked, so keep it unticked while you configure it and tick it when you are done (or when testing in a test environment). A disabled version cannot start new plans.

Duration, Frequency and Payment terms

Section titled “Duration, Frequency and Payment terms”
Setting What it controls
Duration The length of the plan in months (1 to 12, 18, 24, 36 or 72). With Frequency 1, the duration is the number of instalments: a plan with a duration of 2 months creates two part invoices of equal size (annuity).
Frequency (under Part invoices) The number of months between part invoices. The number of part invoices is Duration divided by Frequency, so a 12 month duration with frequency 3 gives four part invoices.
Payment terms The number of days from the planned date of a part invoice to its due date. A due date that falls on a weekend or holiday moves to the next working day.

To let a debtor pay in one instalment with a longer payment term, use a version with Duration 1 month and set Payment terms to 60 days. A debtor who sees a part invoice for only half of the debt has normally started a 2 month plan.

Changing a version that is in use

Section titled “Changing a version that is in use”

A plan copies the settings of its version when it starts. Changing the version afterwards does not change plans that are already running.

To correct a plan that was started with the wrong settings:

  1. Open the invoice or collection case and choose Stop part payment.
  2. Fix the version under Global Settings -> Payment Methods -> Part payment plan.
  3. Start the part payment again from the invoice (Start part payment) or from the case (Edit case -> Part payment plan).

The summary of an existing plan (instalment amount and totals) is cached for up to an hour, so it can lag behind a recalculation.

Which client the part invoices belong to

Section titled “Which client the part invoices belong to”

Part invoices are created on the environment’s own client (the default instance provider client) automatically. You cannot choose another client for them. They:

  • do not book their capital again, because it already sits on the original invoices. Only reminder and interest amounts on a part invoice are booked.
  • are not counted in the capital balances on the system debtor and client debtor, for the same reason.
  • still appear in the invoice list. To include or exclude them, open the filter and use Invoice type (Part invoice (Part payment)) or Part payment (Yes or No).

Which versions a client or debtor is offered

Section titled “Which versions a client or debtor is offered”

Connected clients is the number of clients that are connected to that version, not the number of clients that use it. A version with no connected clients is a global default and is offered for every client. A version with connected clients is offered only for those clients.

This decides which plans a debtor is offered, in the debtor portal and in the debtor-facing API. The versions offered for one client are the versions connected to that client plus all global versions, limited to the invoice’s product, debtor type and country and to versions that are enabled. If a client has its own version with the same Duration as a global one, the client’s own version replaces the global one.

To limit a client to specific versions:

  1. Open a version you want the client to keep, click Add client on the version page, select the client in the Connect client window and click Add client. A client is removed again with the delete icon on its chip.
  2. For every other version the client should not be offered, make sure it has at least one connected client that is not this client. A version with any connected client is no longer global.

Removing a client from a version does not change plans that are already running.

In the debtor portal a version is also offered only if it is switched on for the login method the debtor used. On the version page, under Service providers, the switches BankID login and Payment reference and zip code login control this. The Operations Portal overview does not show which login methods a version has.

This does not limit the operator. In the Start part payment dialog on an invoice, the Version list shows every enabled version for the invoice’s product and debtor type, written as name and duration, whether or not it is connected to the invoice’s client.

5. Setup enforcement

Section titled “5. Setup enforcement”
  1. “Agent code” - Used in payment injunction letters for manual flow - not applicable when using integration.
  2. “Enforcement tolerance” - The minimum debt that has to remain in an enforcement case before it is recalled. If it is below this threshold it will be written off and recalled from enforcement.
  3. “Enforcement merging strategy” - Decides how collection cases are combined in application to the enforcement authority.

Collection settings

Section titled “Collection settings”

The page is titled Collection Settings and holds Global Documents: the e-mail and PDF documents sent to the debtor for closed collection cases and for part payment plans on a case. It has one section for each document:

  • Closed Email: the e-mail sent to the debtor when a collection case is closed.
  • Part Payment Notification
  • Part Payment Agreement
  • Part Payment Plan Invoice
  • Part Payment Plan Invoice Reminder

Each section lists its documents with Name, Client and Last Edit. Use New Document to add one, or the actions menu on a row to Edit or Delete it.

A document with no client is the default for all clients. To give one client its own version, add a document and set Add client to that client. Add client starts on Default. Type a client id or name to search; the list shows only the first ten matches, so a client that is not listed is still found by typing. The client cannot be changed once the document is created.

Closing reasons

Section titled “Closing reasons”

You add reason codes for collection cases yourself, without contacting Quiddly support. A collection reason code can be attached to a case only while the case has the status the code is set up for, for example Stopped or Disputed.

  1. Click Add Code.
  2. Fill in Name and Description. Keep Active ticked to make the code available.
  3. Under Set visibility, set Select type to Collection.
  4. Set Select status to the case status the reason belongs to. For a collection case the options are Closed, Disputed, Paused, Stopped, Open and Write Off.
  5. Optionally tick Add default note for reason code and write the note text.
  6. Click Save.

Viewing and changing reason codes needs a right, see Rights, roles and users and the rights catalogue.

Address lookup and protected identity

Section titled “Address lookup and protected identity”

The Address Lookup event, and the lookup you can switch on before a letter is sent, fetch the debtor’s current address from the external credit information provider. It works only for private persons with an identification number, and only when the address provider is configured for the country. A company is not looked up, and the case then continues to the current address.

When the lookup shows that the person has a protected identity, the system does not keep the address. It replaces the debtor’s name with “Skyddade personuppgifter” and the address with “Folkbokföringsadress saknas”, so the customer card of a protected person is anonymised. If the lookup shows that the person is deceased or has emigrated, the system creates a to-do task on the collection case for you to handle, and the case continues.

Limits

Section titled “Limits”
  • Overdue ongoing payments are not moved to collection. Part invoices and ongoing invoices cannot be added to a collection case, so a part invoice or ongoing invoice that expires does not become a collection case through the invoice profile, and there is no setting that changes this.

5. Verify Setup MANDATORY

Section titled “5. Verify Setup MANDATORY”