Process Late Charges

The Process Late Charges option in Accounts Receivable is only accessible if the Enable Late Charges field is selected in the Accounts Receivable System File.  The Process Late Charges option computes the late charges for the customers who have a balance within (and greater than) the number of days specified in the Starting Point Days field in the Accounts Receivable System File for the designated departments (those with the Assess Late Charges field selected in the Department File).

The Process Late Charges option calculates the late charges for the applicable customers by multiplying the designated department balances with the annual percentage rate as entered in the Accounts Receivable System File, and then dividing that amount by 12 to determine the late charges for the month.  If the calculated amount for late charges is less than the Minimum Amount defined in the Accounts Receivable System File (if applicable), the amount entered in the Minimum Amount field will be used as the late charges that month, prorated among all the department balances if needed, for the customer.

When the Process Late Charges option is completed, invoices are created and posted automatically for the appropriate customers for the late charges using the next available invoice numbers, the specified invoice and due dates, the late charge invoice transactions automatically created for departments, and the designated revenue account numbers defined for the departments (only applicable if operating on an accrual basis).

Steps to Process Late Charges