Overdue Charges

Form ID: (AR204500)

On this form, you can define overdue charges to be used for late payments in the collection process. You define the overdue charges by creating overdue charge codes. You can create as many overdue charge codes (particular overdue charge entities with its own settings) as needed. For details, see Overdue Charges.

Before you create an overdue charge code, you need to create appropriate credit terms by using the Credit Terms (CS206500) form that define the due date for paying the documents of the Overdue Charge type.

This form is available if the Overdue Charges feature is enabled on the Enable/Disable Features (CS100000) form.

Form Toolbar

The form toolbar includes only standard buttons. For the list of standard buttons, see Form Toolbar and More Menu.

Overdue Charges Area

This area contains several sections with various information about the overdue charges.

Table 1. General SettingsYou use the elements in this area to define a new overdue charge code and its settings, or to select an existing code and view its settings.
Element	Description
Overdue Charge ID	The unique identifier for the overdue charge code. An alphanumeric string of up to 10 characters may be used.
Description	A description of the overdue charge code. An alphanumeric string of up to 30 characters may be used.
Calculation Method	The way the system calculates charges for overdue documents. The following options are available: Interest on Balance: The overdue document is subject to charges until it is closed. To calculate the charges for the days past due, the system uses the document's open balance as of the date of calculation. If overdue charges have been recorded for the document, the system calculates the charges for the number of days since the date of the last overdue charges. Interest on Prorated Balance: The overdue document is subject to charges until it is closed. To calculate the charges for the days past due, the system uses the document’s open balance for each of these days. If overdue charges have been recorded for the document, the system calculates the charges for the number of days since the date of the last overdue charges. Interest on Arrears: The overdue document becomes subject to charges at the moment it is closed. To calculate the charges for the days past due, the system uses the document’s open balance for each of these days.
Terms	The credit terms that apply to generated documents of the Overdue Charge type. You create credit terms by using the Credit Terms (CS206500) form to provide a schedule for paying this overdue charge.
Base Currency	A check box that indicates (if selected) that the system will calculate the overdue charge by using the base currency. If the check box is cleared, the system will calculate the overdue charge by using the currency of an overdue document.
Overdue Charge Account	The account to which collected overdue charges are recorded.
Overdue Charge Subaccount	The corresponding subaccount.
Tax Category	The tax category, if applicable to this overdue charge and overdue fee (if any).

Table 2. Overdue Fee SettingsYou use the elements in this area to define an overdue fee that is associated with the selected overdue charge code.
Element	Description
Fee Amount	The amount of the fee for an overdue charge document (if your company charges any). If the Base Currency check box is selected, the fee is charged in the base currency. If the check box is cleared, the fee is charged in the currency of the overdue document.
Fee Account	The account to which the overdue fee is recorded.
Fee Subaccount	The corresponding subaccount.
Fee Description	A description of the overdue fee.

Table 3. Charging SettingsYou use the elements in this area to define the criteria the system uses for generating a document of the *Overdue Charges* type.
Element	Description
Total Threshold	The minimum amount of overdue charges that should initiate the generation of a document of the Overdue Charge type.
Charging Method	The way the system charges an overdue document. An overdue charge can be defined either as a fixed amount or as a percentage (annual rate) on a document's open balance for the number of days late. The following options are available: Fixed Amount: The system charges overdue documents for a fixed amount. You specify the fixed amount in the Amount box, which appears when you select the Fixed Amount charging method. Percent with Threshold: The system calculates the overdue charge as a percentage of the document's open balance for the number of days late. (You specify the percentage in the Rates table, which appears once you select this charging method.) Then the system compares the calculated overdue charge amount with the threshold amount (which you enter in the Threshold box) and does either of the following: If the amount of overdue charges is less than the specified threshold amount, the system does not charge the document. If the amount of overdue charges is greater than or equal to the threshold amount, the system charges the document for the calculated charge amount. Percent with Min. Amount: The system calculates the overdue charge as a percentage of the document's open balance for the number of days late. (You specify the percentage in the Rates table, which appears once you select this charging method.) Then the system compares the calculated charge amount with the minimum amount (which you enter in the Min. Amount box) and does either of the following: If the amount of overdue charges is less than the minimum amount, the system charges a document for the minimum amount. If the amount of overdue charges is greater than or equal to the minimum amount, the system charges a document for the calculated charge amount.
Amount	The amount that the system uses as the fixed charge amount for overdue documents when the Fixed Amount charging method is applied. This box is available if the Fixed Amount option is selected in the Charging Method box.
Threshold	The threshold amount of overdue charges, which defines whether to charge an overdue document when the Percent with Threshold charging method is applied. This box is available if the Percent with Threshold option is selected in the Charging Method box.
Min. Amount	The minimum amount that the system uses to charge an overdue document when the Percent with Min. Amount charging method is applied. This box is available if the Percent with Min. Amount option is selected in the Charging Method box.

Table 4. Rates TableYou use the elements in this table to define rates and their effective start date. The system uses the percent rate in the row that has the most recent start date at the time of overdue charge calculation. This table is available only if the *Percent with Threshold* or *Percent with Min. Amount* option is selected in the Charging Method box.
Element	Description
Start Date	The date when the rate in this row becomes effective.
Percent Rate	The annual percentage rate to be used to calculate an overdue charge.