Tool for firms

Debt mediation payment distribution calculator

When one client payment needs to be shared across several creditors, the calculation should be repeatable and easy to explain.

This calculator shows how a payment can be allocated using the same core rules as DebtDesk's standard payment-distribution workflow. It is an illustrative tool for mediation firms. It does not receive money, send money to creditors, or replace the practice's own review and accounting controls.

Try the calculator

Illustrative estimate only. Figures are not stored. Review every result before acting on it.

Available for distribution

R0.00

Client surplus (unallocated)

R0.00

Amount that could not be allocated to a creditor.

Illustrative allocation per creditor
Creditor	Share	Allocated	Remaining balance
Total allocated		R0.00

Exact cents depend on the production rounding rule. This illustration allocates the base pool by proposed instalment, distributes any surplus to accounts that still have a balance, caps each creditor at its balance, and records the remainder as client surplus.

How the calculation works

DebtDesk first identifies the accepted accounts with a positive proposed instalment, an outstanding balance, and no prescribed-payment exclusion. It then applies the following steps:

On a first payment, subtract the configured mediation fee from the client payment. On later payments, the fee is zero unless the practice's process says otherwise.
If the practice is VAT-registered, split the configured fee into a fee excluding VAT and a VAT amount using the configured VAT rate. DebtDesk currently uses 15%.
Set the distributable amount to the payment less the mediation fee, never below zero.
Add the proposed instalments for the active accounts to get the total distribution weight.
Allocate the base pool proportionally by proposed instalment. The base pool is the lesser of the distributable amount and the total proposed instalments.
If the distributable amount is greater than the total proposed instalments, calculate a surplus pool.
Allocate surplus proportionally among eligible non-fixed accounts that still have a balance after the base allocation.
Cap each creditor's final allocation at its outstanding balance.
Send any amount that cannot be allocated to client surplus.

In plain language, a smaller payment is shared by the agreed weights. A larger payment first covers the agreed monthly distribution, then any remaining amount is considered for eligible accounts that still have balances. If nothing can receive the remainder, it stays as client surplus.

Worked example

A client payment is R2,500. The first-payment mediation fee is R300, leaving R2,200 available for distribution.

Worked example: base allocation then surplus
Creditor	Proposed instalment	Outstanding balance	Final allocation
Creditor A	R1,200	R18,000	R1,257.14
Creditor B	R600	R9,000	R628.57
Creditor C	R300	R4,500	R314.29
Total	R2,100		R2,200.00

The total proposed instalments are R2,100, so the base pool is R2,100. The remaining R100 is the surplus pool, allocated by the same proposed-instalment weights because all three accounts still have balances. The exact cents depend on the production rounding rule.

Why this matters to a mediation firm

The calculation is only one part of the work. The practice also needs to know:

which proposal the allocation is based on;
whether this is the first payment;
what fee and VAT treatment was applied;
which accounts were included or excluded;
whether any creditor reached its outstanding balance; and
what happened to an unallocated remainder.

A calculator helps a mediator test the result. DebtDesk keeps the calculation with the client case and stores the distribution history so the team can review what happened later.

Questions this calculator answers

How do you split one payment between several creditors?

Start with the amount available after any agreed deduction. Divide each creditor's proposed instalment by the total proposed instalments, then apply that share to the available amount. DebtDesk also accounts for outstanding balances, fixed accounts, surplus, and the practice's configured rules.

What happens if the client pays less than the agreed total?

The available amount is allocated proportionally by the active proposed instalments. The calculator shows the actual amount each creditor receives; it does not present the client as having paid the full agreed amount.

What happens if the client pays more than the agreed total?

DebtDesk first allocates up to the total proposed instalments. The remaining amount may be allocated across eligible accounts that still have balances. If it cannot be allocated, it is recorded as client surplus.

What happens when a creditor is nearly paid up?

The final allocation is capped at the outstanding balance. Any amount that cannot be applied to that account is handled as client surplus under the production rules.

Does this calculator send money to creditors?

No. It only performs an illustration. DebtDesk does not receive, hold, or transfer mediation-client money. The mediation practice handles all actual payments offline.

From a calculation to a complete distribution record

Use the calculator to understand the allocation. Use DebtDesk to keep the client, creditor proposals, payment records, distribution history, documents, and account balances together. See how DebtDesk records payment distributions and the full DebtDesk workflow.

Important: This calculator is for mediation-practice operations and general information. It is not legal, tax, accounting, or financial advice. Confirm fee and VAT treatment with the practice's accountant or tax adviser, and review every result before acting on it.

For mediation firms

See the calculation inside DebtDesk

Book a short walkthrough to see how DebtDesk turns a payment allocation into a record attached to the client's case.

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