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DocumentDetails
1.LateChargesOverview
2.SetupforLateCharges
Type:
a.DefineOrganizationalLateChargePolicy WHITEPAPER
Status:
PUBLISHED
b.SetupLateChargeDocuments LastMajor
Update: 20Aug2014
c.DefineTiersandChargeSchedules Last 15Sep2016
Update: English
d.DefineLateChargeProfile
Language:
e.ReviewLateChargePoliciesattheCustomerorTransactionLevels

f.GeneratingLateCharges
RelatedProducts
h.Viewalatechargebatch:
OracleReceivables
i.Viewfinallatecharges
3.AdditionalResources InformationCenters
InformationCenter:Overview
oftheReceiptsWorkbenchin
APPLIESTO: OracleReceivables(AR)11.5
andlater[1362278.2]
OracleReceivablesVersion12andlater InformationCenter:MonthEnd
Informationinthisdocumentappliestoanyplatform. ProcessinginOracle
Receivables(AR)[1370198.2]

ABSTRACT InformationCenter:Overview
ofAutoInvoiceinOracle
Receivables(AR)11.5and
ThisarticlegivesabriefoverviewoftheRelease12Feature:LateCharges.Itdiscussesdefininglatechargesprofilesand later[1137414.2]
classes,howtoviewalatechargebatchandcheckingfinalchargescalculated.
InformationCenter:Overview
oftheTransactionsWorkbench
HISTORY inOracleReceivables(AR)
11.5andlater[1320546.2]

InformationCenter:R12
Author:AyyappanKashivishwanath Critical,Rollupand
CreateDate24NOV2010 RecommendedPatchesfor
UpdateDate01JUL2013 OracleReceivables(AR)
[1433375.2]

DETAILS ShowMore

OverviewoftheTransactionsWorkbenchinOracleReceivables(AR)11.5andlater>Note1269062.1 DocumentReferences
NoReferencesavailablefor
1.Late Charge sOv e rv ie w thisdocument.

InRelease11i,wehadtheconceptofFinanceCharges.InRelease12,thisfunctionalitywasexpandedintoLatechargesto RecentlyViewed
includebothinterestandpenaltycharges.Inaddition,LateChargeshasmoreflexibilityonhowtocalculatecharges,andhowto
store/documentthecharge. LateChargesCalculationand
SetUp:AGuideforOracle
ReceivablesUsers
InRelease11i,usershadtoruntheDunningorStatementprocesstokickoffcalculationoffinancecharges.InRelease12late
[1269062.1]
chargesisastandaloneprocess.
HowToEnableFSGDrilldown
FunctionalityinReport
Thisfeatureprovidesthefunctionalityoftieredchargeschedules,penaltychargecalculation,latechargespolicydefinition.IT Manager?[444308.1]
providesacentralizedsetupandmaintenanceoflatechargepolicies RMFSGDrillDownFailsWith
YouDoNotHavePermission
Thereare3calculationmethods: [436502.1]
HowtoCreateaViewOnly
LatePayment:Chargesarecalculatedasafunctionofwhenpaymentisreceived,theprincipalusedinthecalculationof SupplierFunction
chargesisbaseduponthepaymentamount [1504945.1]
OverdueInvoice:Chargesarecalculatedasafunctionofwhatamountisstilloutstandingatthetimethelatecharge SubledgerPeriodClose
processisrun,theprincipalusedinthecalculationofchargesisbasedupontheopeninvoiceamount ExceptionReportShows
UnprocessedCashAndMisc
AverageDailyBalance:ThismethodisusedinconjunctionwithBalanceForwardBillingsinceitrequiredaprocessthatis
Receipts,ButThoseSeemto
cyclicalinnature BeProcessed[736361.1]
ShowMore
Thereare3Interestcalculationformulas:

Simple:AmountOverdue*(Rate/100)*(#ofDaysOverdue/#ofDaysinPeriod)
Compound:(AmountOverdue+PriorCharges)*(Rate/100)*(#ofDaysOverdue/#ofDaysinPeriod)

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Flat:AmountOverdue*(Rate/100)

Latechargesallowsfurthercustomizationofcalculationbasedupontransactiontypesorparticularcustomers.

2.Se tupforLate Charge s

a.DefineOrganizationalLateChargePolicy

Responsibility:ReceivablesManager
Navigation:Setup>SystemOptions

Toindicatewhetheryourorganizationassesseslatechargesonoverduetransactions,youmustselecttheAssess
LateChargesboxintheSystemOptionswindow.Receivablesreviewsthisoptionfirst,beforereviewingthevarious
aspectsofyourlatechargepolicy.

IntheSystemOptionswindow,youalsoprovideinformationtoprocessthelatecharge
documentsyousendtocustomers,aswellaspossibleinterestcalculationalternatives
forbalanceforwardbilling.

Youcanrecordlatechargesasoneofthreedocumenttypes:

Adjustments
DebitMemos
InterestInvoices

b.SetupLateChargeDocuments

Asmentionedabove,youcancapturelateChargesinthreetypesofdocuments.

1.SetupRequiredforAdjustmentDocumenttype

Responsibility:ReceivablesManager
Navigation:Setup>Receipts>ReceivableActivities

DefineReceivablesActivity
SpecifyGeneralLedgeraccount
Createaseparateactivityforpenalties(Optional)
SelectActivityinSystemOptions

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HowLateChargesWork
Allinterestchargescombinedforoverduetransaction
Singlelatechargeadjustmentagainsttransaction

2.SetupRequiredforInterestInvoiceorDebitMemo

DefineLateChargeBatch

Responsibility:ReceivablesManager
Navigation:Setup>Transactions>Sources
ChooseTypeImported
SelectBatchSourceinSystemOptions

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DefineTransactionType

Responsibility:ReceivablesManager
Navigation:Setup>Transactions>TransactionTypes

ForDebitMemos,chooseClassDebitMemo
ForInterestInvoices,selectClassInvoice
SelecteitherTransactionTypeinSystemOptions

HowLateChargesWork
ForInterestInvoice1InterestInvoiceiscreatedpercustomersiteandcurrency
ForDebitMemo1DebitMemocreatedperoverduetransaction

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c.DefineTiersandChargeSchedules

YoucancustomizethewayLateChargesarecreatedbydefiningInterestTiersandChargeSchedules,thenassociatethese
recordstothecustomerprofile.

DefineInterestTiers

Responsibility:ReceivablesManager
Navigation:Setup>Collections>AgingBucketsandInterestTiersWindow
Definetiersbasedonlatedays

SetupChargeSchedule
Responsibility:ReceivablesManager
Navigation:LateCharges>ChargeSchedules

SelectAmountorPercentage
Assigninteresttiers
AssignChargeScheduletoProfileClass

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d.DefineLateChargeProfile

YoucontrolhowlatechargesarecalculatedbydefininglatechargepoliciesintheCustomerProfileClasses
window.Youcandefineadifferentlatechargepolicypercustomerprofileclass.
Whenyouassignacustomerprofileclasstoacustomer,thelatechargepolicyisdefaultedtothecustomer
account,butyoucanchangethosevalues.Youcanalsodefinealatechargepolicyatthesitelevel.
Todefinealatechargepolicy,navigatetotheCustomerProfileClasseswindow,queryorenteranewcustomer
profileclass,andsettheoptionsdescribedbelow.UseboththeLateChargeProfileandProfileClassAmountstab
todefinealatechargepolicy.

Responsibility:ReceivablesResponsibility
Navigation:Customers>ProfileClasses

DefiningaLateChargeProfile

EnabletheassessmentoflatechargesbyselectingtheEnableLateChargesbox.

ChargeCalculation

AveragedailybalanceCalculatelatechargesbasedontheaveragedailybalanceofoverdueinvoices
LatepaymentsonlyCalculatelatechargesbasedonthenumberofdaysbetweenthepaymentduedate
andtheactualpaymentdate.
OverduetransactionsCalculatelatechargesfortransactions,basedonthenumberofdaysapaymentis
late(similartoRelease11i'sfinancechargemethod)

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OverduetransactionsandlatepaymentsCalculatelatechargesonbothoverduetransactionspluslate
payments.

Interestcalculationformula

FlatRate

Useaflatratetocalculatethelatechargeamount.Receivablesignoresthenumberofdaysthata
paymentisoverdue.Theformulais:
AmountOverdue*(InterestRate/100)

Simple

Calculatelatechargesonoverduetransactionsonly.Theformulais:
AmountOverdue*(InterestRate/100)*(NumberofDaysLate/NumberofDaysinPeriod)

Compound

Calculatelatechargesonthesumofoverduetransactionsandpriorlatecharges.Theformulais:
(AmountOverdue+PriorLateCharges)*(InterestRate/100)*(NumberofDaysLate/Numberof
DaysinPeriod)

Note:CompoundcanonlybeselectedfromtheListofValues(LOV)whentheLateChargeTypeisdefinedas
anAdjustment.WhentheLateChargeTypeisdefinedasInvoiceorDebitMemo,theinterestwillbe
compoundedifyouallowLateChargeInvoices/DebitMemostoincurLateCharges.

Toassesslatecharges,youmustselectboththeAssessLateChargessystemoptionandthisEnableLateCharges
box.

Ifyourecordlatechargesasdebitmemosorinterestinvoices,thenselectapaymenttermtoindicatethedebit
memoorinterestinvoice'sduedate.

Note:Ifbalanceforwardbillingisenabled,thenthisvaluedefaultsfromthepaymenttermonthebalance
forwardbill.

DefineProfileClassAmounts

Profileclassamountsaredefinedpercurrency.Youestablishaminimumandmaximumamountforlatecharges.
Youcanindicatethebasisofcalculatinglatechargesaswellaspenalties:

FixedRate
FixedAmount
ChargeSchedule

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e.ReviewLateChargePoliciesattheCustomerorTransactionLevels

Afterdefiningallthesetupabove,youassociatetheprofileclassatthecustomerlevel.YouusetheLateChargestabatthe
AccountorSiteleveltoindicatehowlatechargesshouldbecalculated.

CustomerExceptions
UsetheLateChargestabatthecustomeraccountorsitelevelstoreviewlatechargesetupdetailsdefaultedfrom
thecustomerprofileclass.Youcanchangeanysetupoptionateithertheaccountorsitelevel.
OptionallysettheAR:UseStatement,Dunning,andLateChargesSiteProfilesprofileoptiontocontrolwhich
accountsite'slatechargesetupisusedbytheGenerateLateChargesprogram.

TransactionExceptions
Ifyounormallychargelatechargesforyourcustomers'pastduedebititems,butyouwanttoexcludeaspecific
debititemfromlatechargecalculations,selecttheExemptfromLateChargesboxintheTransactionswindowfor
thatitem.

f.GeneratingLateCharges

UsetheGenerateLateChargesprogramtocalculatelatechargesaccordingtoyourorganization'sdefinedlate
chargepolicy.

YoucansubmitthisprograminDraftmodetocreateabatchofdraftlatechargesthatyoucanfirstreview.To
revieweachbatch,useoneoftwomethods:

ReviewtheLateChargesreport,whichtheGenerateLateChargesprogramautomaticallycreatesduring
programsubmission.Thisreportoutlinesthedraftorfinallatechargesthatwerecreated.

Responsibility:Receivablesresponsibility
Navigation:LateCharges>LateChargesGenerate

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EnterParametervalues:

ReviewthebatchoflatechargesonlineusingtheLateChargesBatcheswindow.

h.Viewalatechargebatch:

1.NavigatetotheLateChargesBatcheswindow.
2.Selecttheoperatingunit,andexecuteaqueryforthedraftlatechargebatchthatyouwanttoreview.
3.Tomakechangestoindividualchargesonadraftinterestinvoice,debitmemo,oradjustment,choosethe
Linesbutton.
Forexample,youcandeleteindividualchargelines.Or,youcanchangethenumberofdaysthat
Receivablesusedforthelatechargecalculation.
4.YoucanoptionallydeleteadraftlatechargebatchinthiswindowbyselectingDeletefromtheEditmenu.
(thisishowyouwouldRejectaLateChargesBatch).
5.Oncethebatchhasbeenmodified,youshouldregeneratethefinallatechargebatchfromtheLateCharges
Batcheswindow.ThistellsReceivablestoignoreyourlatechargepolicyandinsteadusethemodifiedbatch
informationtocreatethefinallatecharges.Togeneratethefinallatechargebatch:

a.ChangetheModetoFinalandStatustoReady.
b.ChoosetheGeneratebutton.

Uponsuccessfulchargecreation,thebatchstatuschangestoTransferred.

Itisadesignedfunctionalitythatoncethelatechargesprogramisrunin
Finalmodeforagivendate,theprogramdoesnotallowyoutorunlatechargesforthesame
date.

Responsibility:Receivablesresponsibility:
Navigation:LateCharges>BatchMaintenance

Youcanqueryforanexistingbatch:

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ThenclickonViewDocumenttoseedetailswithinthebatch:

i.Viewfinallatecharges

Usethesemethodstoviewfinallatecharges:

BeforeexecutingaqueryintheLateChargesBatcheswindow,selecttheDisplayCompletedBatchbox.
RuntheLateChargesreportforafinallatechargebatch.
QuerytheinterestinvoiceordebitmemointheTransactionsworkbench,andviewthetransaction'sline
items.Eachlinedescriptionincludesinformationabouttheoverdueinvoicethatthechargewascreatedfor

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ThisshowsthatLateChargeshavebeensuccessfullygenerated

3.AdditionalRe source s

ToplaybacktherecordedwebcastsessiononLateCharges,pleasereviewtheReceivablesRelease12LateChargesFunctionality
webcastthreadintheMyOracleSupportReceivablesCommunity.YoucanalsoaccessthepresentationPDFandwebcast
questionsandanswersviathisthread.

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Products
OracleEBusinessSuite>FinancialManagement>CredittoCash>OracleReceivables>TransactionsRelated>LateCharges

Keywords
AMOUNTOVERDUE BALANCEFORWARDBILLING CUSTOMERACCOUNT INTERESTINVOICES LATECHARGE SETUPDETAILS SYSTEMOPTIONS TRANSACTIONWORKBENCH
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