All About Delinquency

Overview

The Delinquency module helps you manage overdue accounts by identifying when they become delinquent, assigning remediation steps, and automating service suspensions or disconnections when needed.

This article covers the delinquency timeline, key billing settings, grace periods, automation options, and how to manage delinquent accounts through the module.

The delinquency timeline

To understand when an account becomes delinquent, it's helpful to know what happens in the lead-up. Below are the key billing settings and how they affect the timeline.

Relevant billing settings

• Invoice Day → When invoices are generated each month.

• Auto pay Day* → When automatic payments are processed (if enabled).

• Days to become overdue after invoice day → Days before an unpaid invoice is considered overdue.

• Days before payment due reminder* → Days after invoice creation before a reminder is sent.

• Minimum due for delinquency → Minimum overdue amount required before the account becomes eligible for delinquency.

• Days to become delinquent after an invoice becomes overdue → How long an invoice must be overdue before triggering delinquency.

• Pending payment delinquency grace period → Grace period for ACH or bank payments that are still processing. If a payment is pending, delinquency is delayed by this number of days.

* Does not directly affect delinquency

When an account is considered delinquent

An account is marked delinquent when all of the following are true:

1. One or more invoices are overdue beyond the allowed days.

2. The overdue balance exceeds the Minimum due for delinquency threshold.

3. No pending payments are delaying delinquency.

4. No grace period has been applied to delay delinquency.

Delinquency timeline example

• Invoice Day → July 1

• Auto pay Day → July 1

• Days to become overdue → 10

• Reminder delay → 5

• Minimum due for delinquency → $10

• Days to become delinquent → 5

• Grace period for pending payment → 5

• July 1: Invoice generated, auto pay attempt, invoice communication sent

• July 6: Reminder sent

• July 11: Invoice becomes overdue, overdue communication sent

• July 16: Account becomes delinquent, delinquency communication sent

Additional settings to further customize delinquency

Apply a fee when a customer becomes delinquent

You can apply a late fee to accounts as soon as they become delinquent. The fee must be created in the Product Catalogue and selected in the Billing Settings. It only applies to accounts that become delinquent after the fee is configured.

Prorate the suspended subscription

If an account is suspended due to delinquency, gaiia can apply a prorated discount for the time the account was suspended.

Managing accounts through the delinquency module

The delinquency module tracks and manages all delinquent accounts. It helps your team apply remediation steps, assign follow-ups, and automate transitions.

Delinquency module overview

The delinquency list displays all delinquent accounts and key information:

• Name → The account name

• Delinquent Since → When the account became delinquent

• Step → The current delinquency step

• Step Since → How long they've been in that step

• Step Due Date → How long they should remain in the step

• New Payment Received Since → If a payment was received and when

• Assignee → Who is managing the account

• Need Intervention → If action is needed

Each row offers an Actions menu:

• Assign to me → Take over account follow-up

• Unassign → Remove the current assignee

• Details → View or change delinquency step

Delinquency steps

The steps an account can be placed in:

• New → First step. Requires manual review.

• Suspended → Services are suspended (manual or automated).

• Disconnected → Final step. Cancellation needs to be triggered manually.

• Paid by customer → Ends delinquency (automated or manual).

Move an account into delinquency manually

To manually mark an account delinquent, search for the account in the Delinquency module and select it. It will be added to the first configured step.

Manage a delinquent account

To manage a delinquent account:

1. Assign the account to yourself using the Assign to me action.

2. Click Details to view account status.

3. Use Change step to move the account to a new step.

Adding automation to your delinquency process

gaiia supports several automation options to reduce manual work during the delinquency process.

Relevant billing settings

First delinquency step when an account becomes delinquent

Lets you choose whether delinquent accounts start in the New or Suspended step.

Automatically move the account out of delinquency when it has been resolved

If enabled, gaiia will automatically move accounts to Paid by customer when:

1. The balance falls below the delinquency threshold.

2. A grace period is applied.

Automatically suspend an account when transitioning to the suspended step

Automatically triggers the suspension workflow when an account enters the Suspended step.

If your first step is Suspended, all delinquent accounts will be suspended immediately.

Automatically reactivate a suspended account when delinquency is resolved

Automatically reactivates the account when it moves out of delinquency (manual or automated).

What happens when a payment is made after suspension

When a payment is made that brings the account balance below the delinquency threshold, the following typically happens automatically:

1. The account is removed from delinquency status.

2. A reactivation workflow is triggered.

3. The account status changes back to active.

This automatic reactivation applies to payments made through the client portal, over the phone, or directly in the billing system, provided the appropriate billing settings are configured.

Apply a grace period

A grace period delays when an account is marked as delinquent. This is useful when additional time is needed to resolve the overdue balance without triggering service suspension.

Grace period only prevents delinquency (and thus suspension/reactivation of service); it does not affect invoice due dates or payment obligations.

The grace period is removed automatically when the account balance returns to $0.

Steps to apply a grace period

1. Go to the account you want to update.

2. In the Billing tab, open the Invoices section.

3. Click Grace period.

4. Set the new Extended delinquency date.

5. Click Confirm.

The number of days you can apply is limited by the Maximum amount of days for manual grace period setting.