Service Contract Offer Debt Balances

If the contract has termination charge basis fields configured, the debt balances in the contract are configured. Any missed recurring payments and late charges are applied to these debt balances. At the time of cancelation, early termination charges (ETCs) are applied to these debt balance, and the debt is handled based on the configured cancel mode:

• Pay all — If all debt cannot be paid, the cancel operation fails.
• Pay and write off — As much of the ETCs and accumulated debt as possible is paid with the available balance, and the remainder is written off.
• Write off all — All debt is written off.
• Pay none — No debt payment is made at the time of cancelation.

If the contract has an ETC schedule configured, then the recurring debt balance in the offer or bundle is configured. Any recurring charge that cannot be fully afforded is then applied to the recurring debt balance. At the time of cancelation, ETCs are first applied to the balance configured in the cancel pricing component configured in the offer, and the fee debt balance is handled based on the cancel mode:

• Pay all — If all debt cannot be paid, the cancel operation fails.
• Write off all — All debt is written off.