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Late Payment Charges Settings

Warren Hamilton
Warren Hamilton
  • Updated
Configure settings for late payment charges in the system. This involves setting up late payment charges calculation, generation date and grace period for different late payment policies.

 

 

Navigation

1. From the homepage, go to Arrears Management module.

2. Navigate to the Late Payment Charges Settings.

 

 

Guide

1. Click the Create New button.

2. Set the Late Payment Charges Settings name.

3. Under the Applicable Entities, add business entities by clicking the Add button.

4. Under the General Settings, set the following:

  • Description
  • Effective Start Date
  • Effective End Date
  • Charge Type
  • Tax Code
  • LPI Invoice Transaction Type

5. Under Account Type Settings, select the Account Type for which this LPI settings will be applied to.

6. Under the Late Payment Charges Generation Date, set the LPI generation settings:

  • Monthly late payment charge generation date: Date of the month
  • Late payment charge invoice date type: Invoice generate date or Fixed invoice date
  • Late payment charge invoice payment term type: Use customer account payment terms or
    Fixed payment term
    • If fixed payment term - set the due date from the dropdown list

7. Under Late Payment Charges Computation, set the LPI charges settings:

  • Basis for outstanding balance: By daily outstanding payments amount or By month end overdue balances
  • Grace period for outstanding balance: Include O/S during grace period or Exclude O/S during grace period
  • Late charge method type: Flat amount, Tiered rate schedule or Interest rate

8. Under Invoice/Credit Note Type Settings, set interest rate option:

  • Fixed (Annual)
  • Fixed (Monthly)
  • Fixed (Daily)
  • Account specific

9.Under Exclusion Rules Setting, set the exclusion settings:

  • Minimum owing amount
  • Minimum late payment charge amount
  • Exclude Deposit charges?: Yes or No
  • Exclude Terminated contract?: Yes or No
  • Exclude late payment charges?: Yes or No
  • Exclude uncommenced account?: Yes or No
  • Excluded charge types - click the Add button and select from the list

10. Under Grace Period, set the grace period settings:

  • Grace period days
  • Number of days required to process collection records

11. Once done, click the Acknowledge button.

 

 

 

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