> ## Documentation Index
> Fetch the complete documentation index at: https://docs.nyumbazetu.com/llms.txt
> Use this file to discover all available pages before exploring further.

# TPS contracts and billing

> Amortisation schedules, generation runs, monthly balances, and at-risk contracts.

**Finance → TPS → Contracts** · **Amortisation Schedule** · **At-Risk Contracts**

A TPS contract bills from an **amortisation schedule**, not from a recurring rent charge. The
schedule is generated once from the contract terms and then drives every period's billing.

## The amortisation schedule

Each scheduled instalment carries:

| Field                           | Meaning                                                 |
| ------------------------------- | ------------------------------------------------------- |
| **Instalment**                  | Its position in the term.                               |
| **Due date**                    | When it falls due.                                      |
| **Scheduled opening principal** | Balance at the start of the period.                     |
| **Scheduled principal due**     | The capital portion of the instalment.                  |
| **Scheduled interest due**      | The interest portion.                                   |
| **Scheduled fees due**          | Any fees billed with the instalment.                    |
| **Scheduled escrow due**        | The escrow contribution, where the scheme collects one. |
| **Scheduled total due**         | What the beneficiary is billed for the period.          |
| **Scheduled closing principal** | Balance at the end of the period.                       |

The schedule is the contract's promise. Actual billing and payment are measured against it, which
is what makes "behind schedule" a precise statement rather than a judgement.

## Generation runs

Schedules and their invoices are produced by generation runs. The **Generation Runs** page shows
each run and its outcome; **Monthly Balances** shows the resulting position per contract per month.

<Steps>
  <Step title="Verify contract terms before generating">
    Loan amount, deposit, rate, term and start date. A schedule generated from wrong terms has to
    be regenerated, and any invoices it produced have to be corrected.
  </Step>

  <Step title="Generate the schedule">
    Produced once per contract from its terms.
  </Step>

  <Step title="Review the schedule">
    Check the first and last instalments and the closing principal. A closing principal that is not
    zero at term end means the terms and the schedule disagree.
  </Step>

  <Step title="Bill from it">
    Each period's instalment becomes an invoice, settled and allocated like any other. See
    [Invoices](/guides/invoices-and-payments).
  </Step>
</Steps>

## Payments and allocation

Instalment invoices are settled by payments and [allocations](/guides/allocations) exactly like
rental invoices. What differs is the interpretation:

* **On schedule** — cumulative principal paid matches the schedule's expectation for the date.
* **Ahead** — the beneficiary has paid more principal than scheduled.
* **Behind** — arrears against the schedule, which is what drives at-risk status.

### Overpayments and prepayments

<Warning>
  An overpayment on a TPS contract is **not** the same as an overpayment on a rental account. Applied
  naively — by simply pulling principal forward without re-amortising — a prepayment can leave the
  borrower paying substantially more interest than the shortened schedule would justify. Treat
  prepayment handling as a scheme policy decision, and record the intent explicitly rather than
  letting a generic allocation rule decide it.
</Warning>

## At-risk contracts

**At-Risk Contracts** lists contracts in arrears against their schedule, with the size and age of
the shortfall. It is the TPS equivalent of the debt-aging report, measured against amortisation
rather than against invoice due dates.

Work it the same way you work arrears elsewhere:

<Steps>
  <Step title="Sort by exposure">
    Largest net loan balance with the largest schedule shortfall first.
  </Step>

  <Step title="Check whether it is a payment problem or an allocation problem">
    Money received but unallocated shows as arrears. Fix allocation before contacting anyone.
  </Step>

  <Step title="Check the default state">
    A contract approaching default criteria needs a different conversation from one a month behind.
    See [Compliance & ownership](/guides/tps/compliance-and-ownership).
  </Step>

  <Step title="Record the outcome">
    Notices, arrangements and commitments belong on the record, not in an inbox.
  </Step>
</Steps>

## Contract statuses

TPS uses the shared lease-status vocabulary plus three of its own:

| Status          | Meaning                                                          |
| --------------- | ---------------------------------------------------------------- |
| **Defaulted**   | The contract is formally in default under the scheme's criteria. |
| **Repossessed** | The property has been repossessed by the owner.                  |
| **Completed**   | The contract is fully paid and ownership has transferred.        |

See the [full lease-status reference](/guides/units#full-lease-status-reference).

## Common problems

| Symptom                                             | Cause                                                                                |
| --------------------------------------------------- | ------------------------------------------------------------------------------------ |
| Schedule closing principal is not zero at term end  | Terms and schedule disagree — usually the rate or term was changed after generation. |
| Contract shows arrears but the beneficiary has paid | Payment unallocated, or allocated to the wrong contract.                             |
| Instalment invoices not generated for a period      | Check the generation run for that period and its outcome.                            |
| Net loan balance not falling                        | Payments are settling fees and interest only; check the allocation order.            |