By default, an account becomes overdue if the minimum amount due (MAD) is not paid by the due date. The overdue tolerance feature enables you to set up additional rules that tell the Pismo platform to ignore overdue amounts if they fall within a tolerance range. In other words, if the overdue amount is within a specific range, the platform does not consider the account to be overdue, and overdue charges are not applied.

To configure overdue tolerance, set the following program parameters.

Parameter name	Definition
Overdue tolerance percentage	A percentage of the overdue amount that is used by the Overdue tolerance method to determine if the account should be considered overdue. Must be greater than 0 and less than or equal to 100.
Overdue tolerance amount	A fixed amount that is used by the Overdue tolerance method to determine if the account should be considered overdue. For example, $70.
Overdue tolerance method	The method to apply: 0 — Do not use. 1 — Maximum value. Between the Overdue tolerance amount and (MAD x Overdue tolerance percentage), use whichever value is higher. If the difference between the payment and the overdue amount is less than or equal to this value, the account is not considered overdue. 2 — Minimum value. Between the Overdue tolerance amount and (MAD x Overdue tolerance percentage), use whichever value is lower. If the difference between the payment and the overdue amount is less than or equal to this value, the account is not considered overdue.

Examples

Example 1

Suppose you set up the program parameters as follows.

Parameter name	Value
Overdue tolerance percentage	10%
Overdue tolerance amount	$70
Overdue tolerance method	1 (Maximum)

Now, suppose:

Minimum amount due (MAD) is $100.
A payment is made of $80.
Payment is received after the due date.

The overdue amount is:
minimum amount due - the payment = 100 - 80 = $20.

Since the tolerance method is set to 1, the platform uses the higher of the following values:

Overdue tolerance amount : $70
Calculated tolerance percentage: MAD x Overdue tolerance percentage = 100 x 10% = 100 x 0.1 = $10

Because $70 is greater than $10, the platform uses $70 as the actual tolerance value. The overdue amount is $20, which is lower than $70, so the Pismo platform does not consider the account overdue.

Example2

Suppose the program parameters are set to the same values as in Example 1, except that Overdue tolerance method is set to 2.

Parameter name	Value
Overdue tolerance percentage	10%
Overdue tolerance amount	$70
Overdue tolerance method	2 (Minimum)

Since Overdue tolerance method is set to 2, the Pismo platform uses the lower of the following values:

Overdue tolerance amount : $70
Calculated tolerance percentage: MAD x Overdue tolerance percentage = 100 x 10% = 100 x 0.1 = $10

Because $10 is lower than $70, the platform uses $10 as the actual tolerance value. The overdue amount is $20, which is higher than $10, so the Pismo platform does consider the account overdue.