Prerequisites for Payment Generation

Purpose/Overview

Before generating payments, it is essential to ensure that all required agreement data is properly configured within the system. Missing or incomplete information will prevent the system from calculating or generating payments.

The Payment Generation prerequisites ensure that agreement, ownership, parcel, and acreage information is complete and accurate so that payments can be calculated correctly and distributed to the appropriate payees.

Things to Know:

• Payment generation cannot proceed if any required agreement information is missing or incomplete.
• Ownership percentages must total exactly 100% for each ownership category.
• An active agreement term must exist with valid start and end dates.
• At least one parcel must be associated with the agreement.
• Each parcel must contain both total acreage and paid acreage values.
• Any ownership discrepancies will prevent payment generation.

Key Benefits/Use Cases:

• Agreement Validation

  Ensures all required agreement components are configured before payment calculations begin, reducing payment processing errors.

• Accurate Payment Distribution

  Validates ownership percentages and payee information to ensure payments are allocated correctly among all eligible landowners.

• Contract Compliance

  Uses agreement terms and phases to align payment schedules with contractual timelines, ensuring payments are generated only when applicable.

How It Works:

Step 1: Configure the Agreement

Create and maintain an active agreement record containing all required information.

The agreement must include:

These elements collectively ensure that payment calculations are accurate and properly distributed among all eligible payees.

Refer to "Agreement/Lease Management" library for more information.

Step 2: Define Agreement Terms

Agreement terms define the duration and phases of an agreement, which directly control when payments begin and end.

Each term represents a specific stage in the agreement lifecycle and determines payment eligibility.

Typical agreement phases include:

• Development Phase
• Construction Phase
• Operational Phase

The system uses these phases to align payment schedules with contractual timelines.

Refer to "Agreement Term Setup" article for more information.

Step 3: Validate Ownership Configuration

Ownership information must be complete and valid before payments can be generated.

Key requirements include:

• Ownership may be categorized into types such as Surface, Wind, Crop, or Ownership Share.
• Each ownership category must total exactly 100% across all payees.
• Any discrepancy in ownership distribution will block payment generation.

This validation ensures that all payments are proportionally and correctly allocated.

Refer to "Adding Landowners to Agreement" article for more Information.

FAQ/Troubleshooting:

Q: Why can't I generate payments? 

A: Payment generation is blocked when required agreement information is missing or incomplete. Verify that the agreement, terms, payees, ownership, parcels, and acreage information have been configured correctly.

Q: What happens if ownership percentages do not equal 100%? 

A: The system will prevent payment generation until ownership percentages are corrected and total exactly 100% for the applicable ownership category.

Q: Are agreement terms required for payment generation? 

A: Yes. At least one active agreement term with valid start and end dates must exist because agreement terms determine payment eligibility and scheduling.

Questions?  Contact us!