Payment Deadline: Discount Removal and Payment Adjustment Process

Overview

This document describes the process of implementing the “Remove a Discount” feature in the financial overview module, specifically within the “Per Arrangement” and “Per Installment” views. The feature allows for the removal of discounts when a payment deadline is missed, adjusting the installment value accordingly.

Functionality

Button Visibility

The “Remove a Discount” button is visible in the following views:

Per Arrangement View: Always visible.

Per Installment View: Only visible when the “View ONLY Outstanding Payment” option is set to True.

1. Dropdown for Discount Selection:

• • ”Per Arrangement” view > Upon clicking the “Remove a Discount” button, a dropdown appears displaying active discount types. (no Voucher or Pledge Discounts)
  • “Per Installment” view > Only active discounts are shown, and discounts that have dynamic values based on the number of installments (if not inactive) are available.

• • The user must select a discount type from the list.

2. Discount Removal Process:

• After a discount type is selected, the system checks if the discount is applicable to the current payment arrangement. If applicable, the system removes the discount and recalculates the payment amounts accordingly.
• If a dynamic discount is selected, the discount value is adjusted based on the number of installments, and the installment amounts are updated dynamically.

3. Exception:

• If the recalculated discount value reaches zero, the discount will not be removed but the value will remain unchanged.

Business Case Example

Scenario: A student enters a payment arrangement of 30 installments, each valued at €1,000, totaling €30,000. If the student pays on time, they receive a €100 discount per installment, reducing the amount to €900 per installment.

1. Initial Agreement:
   • Total arrangement value: €30,000.
   • Discount applied: €3,000 (30 installments × €100).
   • Adjusted arrangement value: €27,000.
   • Monthly installment amount (with discount): €900.
2. Payment Terms:
   • Payments are due by the 5th of each month.
   • If payment is made on time, the student pays €900 for that month.
   • If the payment is missed (after the 5th), the discount for that installment is removed, and the amount due becomes €1,000.
3. Missed Payment Example:
   • If the student misses the first payment:
     • The discount is removed for the first installment, making the amount due €1,000.
     • The remaining 29 installments stay at €900 as long as they are paid on time.
     • The total arrangement is updated to €27,100 (1st installment at €1,000 + 29 installments at €900).