To Configure an Overdue Charge Code

You configure an overdue charge code by using the Overdue Charges (AR204500) form.

Before You Proceed

Before configuring an overdue charge code, make sure the following conditions are met:
  • The General Ledger account of the income type and the corresponding subaccount (if applicable) you are going to use to record each overdue charge and each overdue fee (if you plan to charge one) have been created on the Chart of Accounts (GL202500) form.
  • Credit terms that define a due date for paying overdue charge documents have been created on the Credit Terms (CS206500) form.

To Configure an Overdue Charge Code

  1. Open the Overdue Charges (AR204500) form.
  2. On the form toolbar, click Add New Record (or press Ctrl + Insert).
  3. In the General Settings section, do the following:
    • In the Overdue Charge ID box, type the identifier of the overdue charge code.
    • Optional: In the Description box, type a short description of the overdue charge code.
    • In the Calculation Method box, select the calculation method to be used: Interest on Balance, Interest on Prorated Balance, or Interest on Arrears. For details, see Overdue Charge Code Definition.
    • In the Terms box, select the credit terms that have been configured for overdue charge documents.
    • Optional: Select the Base Currency check box to make the system calculate the overdue charge by using the base currency.
    • In the Overdue Charge Account box, select the account to which collected overdue charges should be recorded.
    • In the Overdue Charge Subaccount box, select the subaccount (if applicable) to which collected overdue charges should be recorded.
  4. In the Charging Settings section, do the following:
    • In the Total Threshold box, specify the amount of the overdue charges that should initiate the generation of a document of the Overdue Charge type.
    • In the Charging Method box, select the method that the system should use to charge overdue documents. The following options are available:
      • Fixed Amount: If you select this option, you need to specify the fixed amount in the Amount box, which appears when you select the Fixed Amount charging method.
      • Percent with Threshold: If you select this option, you need to specify the percentage in the Rates table and the threshold amount in the Threshold box. Both of these elements appear once you select the Percent with Threshold charging method.
      • Percent with Min. Amount: If you select this option, you need to specify the percentage in the Rates table and the minimum charge amount in the Min. Amount box. Both of these elements appear once you select the Percent with Min. Amount charging method.

      For details, see Overdue Charge Code Definition.

  5. Optional: If your company charges an overdue fee, in the Overdue Fee Settings section, enter the following details:
    • In the Fee Amount box, type the amount of the overdue fee.
    • In the Fee Account box, specify the account to which the overdue fee should be recorded.
    • In the Fee Subaccount box, specify the subaccount to which the overdue fee should be recorded.
    • In the Fee Description box, type the description of the overdue fee.
  6. On the form toolbar, click Save.