The following scenario illustrates the one-time addition of a late fee that is a flat amount to a past due receivable.
1. A Receivable (RE) transaction becomes overdue. The details on the receivable can affect whether it is eligible for automatic finance charge.
Vendor Line
The Billing Profile used on the Vendor Line has Finance Charge setup that imposes a late fee.
The Due Date on the Vendor Line relative to the system date places this receivable as ”past due” or overdue” which makes it eligible for finance charges
Automatic Finance Charge is not suppressed for this receivable.
Accounting Line
The Event Type used on the RE accounting line is established as ”eligible” for finance charges on the Finance Charge Eligibility table.
The RE transaction contains one accounting line with an outstanding amount.
The Line Amount is equal or greater than the Minimum Past Due Amount for Finance Charge established in System Options. is established and submitted.
2. System Administrator - The Finance Charge chain is executed.
3. After the chain has successfully completed, the user can verify the following:
· A new version of the eligible RE transaction has been created.
· On the RE Header, the amount owed has been increased by the amount of the late fee.
· On the RE Header, the Last Automatic Late Fee Date has been updated with the date when the chain was executed.
· On the RE Accounting Line, the chart of accounts from the ”principal” line have been copied into the new accounting line except for the Revenue Source. The Revenue Source code was populated from the Revenue field specified on the Finance Charge table.
· On the RE Accounting Line, a new line has been added with the following information:
· The Event Type was populated from the Event Type field specified on the Finance Charge table.
· The Line Type was populated from the Line Type field specified on the Finance Charge table. The Line Type Name field infers from the Event Type table.
· The Line Description was populated from the Description field specified on the Finance Charge table.
· The Line Amount was populated from the Rate field specified on Finance Charge table.
· The Reason code was populated from the chain.