Sample Use Case

1. Apply Late Payment Charges

1.1 Actor(s) - Invoicing
1.2 Brief Description
The late charge adjustment will be calculated during invoicing to be added to the account's invoice.
1.3 Flow of Events
1.3.1 Basic Flow-(see proposed process flow at the end of this document)

Invoicing Activities Object Activities

1. In the process of creating the current cycle’s

invoice,
1.1. If Grace Period = Yes, check for a Prior
Unpaid Balance
1.2. ELSE, check for a Prior Unpaid Balance
or a Transaction Paid Late (see
requirement below)
to indicate that prior transactions have not been
paid in full or have been paid late.
2. If any are found, and the customer account has
a status of LPC = Yes, invoke the LPC process.
12. Invoicing will bill the account
3. Get transactions with outstanding amounts not
= 0 (and if grace period = no, late paid
transactions) and begin LPC processing. (note:
this should include unapplied payments or
credits)
4. (future) For each transaction, first determine if
the transaction is disputed. If so, go to the
alternate flow to determine if it should be
excluded.
5. If the transaction type = LPC or transaction
subtype = LATE, and the interest method is
simple, exclude it.
6. Retrieve the invoice associated with the
transaction.
7. Determine if the transaction is past due by
comparing the current cycle invoice date and to
the DUE DATE field on the invoice. If not past
due, exclude the transaction.
8. If the transaction has not been excluded,
accumulate the total outstanding amount for
LPC.
9. Calculate the LPC by applying the interest rate
and method to the total accumulated
outstanding amount.
10. Save the new LPC charge in the transaction
history.
11. Return results to invoicing
1.3.2 (future) Alternate Flow-disputed charges
Invoicing Activities Object Activities

1. If Disputed Charge,
2. Determine if an expiration date exists.
2.1. If the expiration date exists, then
2.1.1. If current date is greater than expiration date,
2.1.2. Then remove the dispute check
and clear the expiration date field
2.1.3. Include the item in LPC calculation
2.2. Else exclude the charge from LPC calculation.
3. If a dispute has expired, the customer interaction process
will automatically create an entry containing the date, User,
Transaction identifier, and a message that the Dispute
expired on MM/DD/YYYY.

1.4 Special Requirements

• Transactions paid late are defined as transactions that have been paid since the last invoice that were
paid after the due date.
• This process will occur only during the on-cycle billing process.
• (future) Disputed charges are excluded from the LPC calculations.
1.5 Pre-Conditions
The account determinants for late payment charges must be set in APPLICATION.
The invoice must have an unpaid balance due or a transaction paid late.
1.6 Post-Conditions
The bill will be issued with a late payment charge.
1.7 Extension Points
1.8 Issues
1.8.1 Open Issues
• If canceling a bill that has an LPC for a prior period on it, what should happen? (Currently, the LPC
will automatically be cancelled.)

1.8.2 Closed Issues

• What will the Late Payment Charge look like on the bill? It will be a line item on the summary.
• Are the taxes associated with an overdue payment included in the calculation? YES
• If an amount is paid after the due date, but prior to the on-cycle billing, there will be no LPC applied
even though the payment is technically late. For example, a transaction billed on 4/14 is due in 15
days on 4/29. The transaction is not paid until 5/3. Therefore it is 4 days past due. The next billing
for the customer will be on 5/14 and there will be no LPC for that transaction. Is this valid in all cases,
or in certain cases, will the LPC be assessed anyway? Grace period takes care of this.