This scenario illustrates the addition of an interest fee to a past due receivable. The interest is setup to be calculated as simple interest on a monthly basis and will be derived on the 18th day of each month. The scenario is similar to the previous Finance Charge Auto – Flat Fee / One Time scenario with the following changes to the past due Receivable (RE) transaction:
The Billing Profile used on the Vendor Line has Finance Charge setup that imposes simple interest.
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 interest charge.
On the RE Header, the Last Automatic Interest 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 with the interest amount. The interest is calculated using a specific formula.
The Reason code was populated by the chain.