Overview

Payment Pouring in Canopy's system is referencing the ordering in which payments get allocated against balances that are due. This ordering is specific and affects how debts are repaid on Canopy's system. Our default sorting system has been created with industry experts to be the favorable configuration that supports most use cases for credit and installment-based products.

For those interested in other configurations please contact our Sales and Client Delivery team for more details on additional options.

Payment Pouring Ordering

Default Payment Pouring Order

The default payment pouring is a common use case that some institutions follow and it supports installments, loans, and revolving lines of credit.

The order is as follows:

1. Pay all the FEES starting from the most aged fee due
2. Pay all of the due INTEREST or amortized fees from the most aged due
3. Pay all of the owed PRINCIPAL paying off the most aged first
4. If there is still remaining funds, they then start paying off the most aged draw PRINCIPAL from the last month of the most aged cycle
   1. Any INTEREST that was due in the months that have been paid off is now no longer accrued or owed

Specific Allocation Pouring

Specific Allocation pouring happens during specific actions within Canopy's system. These actions can be PAYMENTS orOFFSETS with allocations selected in any of the three options of PRINCIPAL, INTEREST, or FEE

The ordering of these events is as follows:

1. Pay off the PAST_DUE amount for the selected allocation
2. Pay off the CURRENT_DUE amount for the selected allocation
3. Pay off the remaining balance for the selected allocation
4. Then follow default payment pouring for the account

The other form or allocation specification is present in line item loans, with loan specific PAYMENTS or OFFSETS. In these scenarios you also have the three allocation options PRINCIPAL, INTEREST, or FEE, but the payment will be directed at a specific line item loan selected by LINE_ITEM_ID.

The ordering of these events is as follows:

1. Pay off the PAST_DUE for the selected allocation
2. Pay off the CURRENT_DUE for the selected allocation
3. Pay off the remaining balance for the selected allocation
4. Then pour into the LINE_ITEM Loan that was selected
   1. Starting with FEE, INTEREST, then PRINCIPAL by the most aged balance in each allocation
5. Then follow default payment pouring for the account