Credit Balances

Overview

Credit Balances are containers for accumulated credits which are owned by the insured. Credit balances can rise in circumstances like:

  • Overpayments of invoices

  • Cancellations

  • Policy changes which reduce premiums

  • Shifting from a front-loaded installment schedule such as fullPay or annually to a more even schedule such as monthly

Likewise, credit balances can decline when used to pay invoices or when funding disbursements.

When a payment is posted and applied to an invoice with a lesser unsettled amount, the remainder will automatically be credited to the account’s credit balance.

Usage

Amounts accrued in credit balances can be drawn down via disbursements (sending funds back to the insured) or applying them to outstanding invoices using a credit distribution.

In either case, a new disbursement or credit distribution entity is created explicitly, and the source or sources of credit are added to it. Then, once the entity proceeds through its lifecycle and reaches executed state, the funds are debited from the source and to the target.

See Also