102972019 Document 1260062.1 ORACLE wrcancieserronr (Gl Pomveneoi | J © Meet) — HO) cota us Hep actos Mowing Sei Rags Pale Une eas Ge 2 Ge Fst core (218. Mes rend rae Cereal ‘2 Late charges Calculation and Set Up: A Guide for Oracle Receivables Users (Doc 1D 1268062.1) @reset0 In this Document Wa thie docu eh sb ve Hor, Dats ee Document etal 2 saunter te het aaa 2, Define Oroarizational Late Charge Policy, Sine WRITE Pa . Setup Late Charge Documents tae Sour Dafne Ter and Charge Schedles eee : Sexe: iin) Revie Late Charo oles athe Gusto” Transaction Levels —t.Genzztn Late Charges dees rosce —D. View a late charge batch: sine Presse te cre Rens 4. dtonal Resouces Infrmation Centers ‘References Information Center: Overview Sse toc (A 1.5 Doar (822782) Oracle Receivables - Version 12 and ter SaPraanin Oak Information inthis document apps to any platform. les (AR) (3701982) fecvates (48) 13 206 heii This arte oves a bref overview of the Release 12 Feature: Late Charges, I clscusses defining late charges profes and Infrmaten canter ven ‘dass, how t view alate charge batch and checking final charges clulted. fhe esc Wertbaret oracle ects (AR) 115 ene ier aes) ‘Author: Ayyappan Kesivishwenath Crt oly on Create Date 24-NOV-2010 ecm Paces for Sree tones issssrs2) Update Date 10-J0V-2018 Overview of the Transactions Workbench in Oracle Receivables (AR) 11. 1. Late Charges Overview hs document In Release 1, we had the concept of Finance Charges. In Rlese 12, this uncionay was expanded int Late charges to Recently Viewed Include bath interes ard pena charges. In ado, Late Charges has more Nexlty on how to calculate crrges, ard ow to Sore/decument the orge Leer otatton a In Release 11, users had to run the Dunning or Statement process to kick of calculation of finance charges. In Release 12 late issuati] charges a standalone process. cee tes cto “This feature provides the unclonalty of recharge schedules, penalty charge calcultonlte charges poy defnton. TT | sale eon provides a certralaes setup and manenance ote charge pales (ies Eenanaants Pet ‘There are 3caeuation methods: arr pas + Late Payment: Charges are caused asa function af when payments rceed,the principal used inthe caleuton of Sa ope ne targes based uoon the payment aroun: ate to add ese + Orarde Invoice: Charges ae eakuated as 2 function of what amount il outstanding a he tne the ae charge yomesene ter proces sun, the propel used inthe alton of charges based Upon the open invoice amour. ‘Nan Gui ede + erage Daily Balance: Ths method is sedi conjunction wih Balance Forward ling shes requred a proces ati (08541) celal nature ont Eo eta Pinta esta) ‘There are 3 intrest caeuaton formulas: Shon Here hpssisuppor.orace.com/epmosstaces!DocumentDisplay?_afrLoap=2772473722056598id=1260062.1&cieplayindex=28,afindowMode=08_ ad... 1/11102972019 Document 1260062.1 + Simple: Amount Overdue * (Rate / 100) *(# of Days Overdue # of Days in Period) + Compound : (Amount Overcue + Prior Charges) * (Rate / 100) * (# of Days Qverdve J # of Day in Pevod) ‘ > ‘Mat Armeunt Overdue (Rate / 100) Late charges allows futher customization of calculation based upon transaction types or particular customers 2. Setup for Late Charges {Define Organizational Late Charge Polley Responsibility: Recevables Manager Navigation: Setup > System Optons To indicate whether your orgarization assesses late charges on overdue transactions, you must solct the Assess {ate Charges box in the System Options window. Recevables reviews ths epton fst, before reviewing the vrlous aspects of your lte charge pale. Inthe System Optons window, you also provide information to proces the late charge ocuments you Send to customers, as well as possble interest calculation atleratves for balance forward bling 1 Alan ayer of Unltd Tanecions Show Blas Ware Tax mice Prating Options fimezs Wah G68 —_________brewne unbecerentoniee! heneand | ‘rape Cay Bace ee Meme a ‘sce Casto Esato Debt toe Inert Chae Act Franca Chase Caton Pad nate ale ty Coogee ut age Bch Soren CR Late She Bach | ewes UapFnkatpent 8 rete Tete Kom eae ato ety eessettnne oma Rae Nane BERR Yu can record it charges as one of tee docu yes: + Aausinents 5 Sebi Memos 1 Interest invoices '. Setup Late Charge Documents ‘As mentioned above, you can capture late Charges in tree types of documents 1. Setup Required for Adjustment Document type Responsibility: Receivables Manager Navigation: Setup > Receipts > Recetvable Activites Define Receivables Aetity ‘Speeiy General Ledger account Creat a separate activity for penates (Optional) Select Aci in System Options htps:suppor cael. comlepmosfaces/DocumentDisplay?_afrLoop=27724737220585B8id=1250062.1&clsplayindex=28 affWindowMode=08 ad... 2/11102972019 Document 1260062.1 Accaating OL Accom Souce (AebtySUASESHH TPleCoteSouce Nene ‘etry CL Account ITADTBIOOOHOOO Cistibaion Set 15 Account Mneerition (Operations Conallers Oficelnerst acon Na Sub How Late Charges Work ‘All interest charges combined for overdue transaction Single late crarge adjustment against wansacton 2. Setup Require for Interest Invoice or Debit Mero Define Late Charge Batch Responsibility: Recevables Manager Navigation: Setup > Transactions > Sources + Choose Type "Imported" * SeletBateh Source In System Options hitpssuppor oracle, comlepmesaces/DocumentDisplay?_afrLoop=2772473722050588h 260062. 1&eplayindex=24_ af WindowMode=08_ad ant102972019 ‘Operating Unit [Vision Operations Legal Entity Document 1260062.1 Name [CR Late Charge Batch Source Type (ireonea Autoinoice Options Customer Information | Accounting Description SACATAETENEM act Automatic Batch Numbering 1 Automatic Tanesetion Numbering 1 Copy Document Number to Transaction Numb [Allow Duplicate Transaction Numbers Gopy Transaction ermaton Flexo to Credit Memo Receipt Handing for Cres Reference Field Defaut Value Standard Transaction Type Credit Momo Batch Source Define Transaction Type Responsibility: Recevables Manager Navigation: Setup > Transactions > Trensacion Types For Debit Memos, choose Class "Debt Memo” For Interest Invoices, selec: Cass "Invoice” Select ether Transaction Type in System Options nranan i Gptns apse | Tessin [ Effective Dates [01 JAN2008 Last Number 2000 Last Nore — Prt cten Information mes Te | a ame pelcnen ie | Tew [ ‘su ote (SIO caste | ¥ ap Fate ‘Alon Fit emia Caen ¥ ston Ownenezon i (MI cre | a Fecnie cowt Om WORSEN rip decor Acc Deen ow Late Charges Work For Interest invoice ~ 1 Interest Invoie is created per customer site and currency For Debt Memo ~ 1 Debit Memo created per overdue transaction hitpssuppor oracle, comlepmesaces/DocumentDisplay?_afrLoop=2772473722050588h 1250062. 1Bcisplayindex=28_ af WindowMode=08_adl ann102972019 Document 1260062.1 Define Ters and Charge Schedules You can customize the wey Late Charges are created by defining Interest Ters and Charge Schedules, then associate these records tothe customer profile. Define Interest Ters Responsibility: Receivables Manager Navigation: Setup > Collectons > Acing Buckets and Interest Tess Window Define ers based on late cays co Name Deserition [OR Interest Ter ‘Type [interest Ter Status Lines Sequence Wonber Days Days Column Headings Type Frm To Fist ‘Scont u Ir Past Ove [ft is 1-15 Days ae = 2 [Past Ove | 6 a 16-30 Days tate Setup Charge chee Responsibility: Receivables Manager Navigation: Late Charges > Charge Schedules Select Amount or Percentage Assign interest Uers ‘Assign Carge Schedule to Profle lass hitpssuppor oracle, comlepmesaces/DocumentDisplay?_afrLoop=2772473722050588h 260062. 1Beplaylndex=28_afWindowMode=08_adl... 5/17s072972019 Document 1260062.1 Shae Name Chg Sede 2 SeheseDesptn|R hg Sched? — come senates tics Ter ‘iheaie ype Platte Endo Ena Weise Tr Pecans earn a Ths ve [some 2 : 1530 Days te 4. Dofine Late Charge Profil. You control how late charges are cakulated by defining late charge poles in the Customer Profle lasses window. You can define a etferent late charge poy per customer prof cas. ‘When you assan a customer pote dass to customer, the ate cxarge pay i defaulted to the customer accourt, but you can change those values. You can alse define a late charge policy atthe se lve ‘To define alate charge poy, navgate tothe Customer Profile asses window, query oF enter 2 new customer rfl class, and set te optors described below. Use bath the Late Charge Prefle an Profle lass Amur ab to define alate charge poly. ‘Responsibility: Rcsvables Responsibly ‘Navigation: Customers > Profle Classes einai Defining 2 Late Charge Profle Enable the assessment of ate charges by selecting the Enable Late Charges box. ‘charge Caution + Average daly balance - Calculate at charges based onthe average daly balance of overdue invoices + Late payments only - Calculate ate charges based onthe numberof days betwean the payment due date and te ectal payment ate + Overdue wansacions - Calculate ate charges for transactions, based onthe numberof days a payment is Tat (simlrto Release 11/5 fnance charge method) hitps:suppor cael. comlepmosfaces/DocumentDisplay?_afrLoop=2772473722058588id=1250062.1&clsplayindex=28_affWindowMode=08 ad... 6/11102972019 payments. Interest caleulation formula + at Rate Document 1260062.1 + Overdue wansactions and late payments - Calculate late charges on bath overdve transaction pus late Use a fat rate to calculate the fate charge amount. Receivables ignores the numberof cays that a payment is overdue. The formulas: ‘mount Overdue * (Interest Rat 100) + Simple Calelote late charges on overdue transaction only, The formula is ‘Amount Overdue * Interest Rate/100)* (Number of Days Lte/Number of Day in Period) + Compound Calculate late charges onthe sum of overdue transactions and prior late charges. The frmula is (Amount Overdue = Pror Late Charges) *(ImerestRate/100) * (Number of Days LatefNumber of Days in Peng) Note: Compound can onl be selected ftom the Uist of Vales (LOV) when the Late Charge Type i defined as an Adjustment. When the Late Charge Type is define as Invoice or Debt Memo, the intarest wll be ‘compounded if you alow Late Charge Invoces/Debit Mer to incur Late Carges. bo memo or interest invoices cue dat To assess late charges, you must select both the Assess Late Charges system option and this Enable Late Charges you record late charges as debit memes or intrest invoices, then selec a payment term t indicate the debit forward Bil Note: If balance forward biling is enabled, then this value defaults fom the payment term onthe balance Define Profle Class Amounts Profle class amounts are defined per currency. You establish a minimum and maximum amount for late charges. You can indicate the basis of caleltng late charges as well as penalties: + xed Rate + Fxed Amount + Charge Sehedvle ag ry Cone hitpssuppor oracle, comlepmesaces/DocumentDisplay?_afrLoop=2772473722050588h 260062. 1&eplaylndex=28_ afWindowMode=08_adl... 7/11102972019 Document 1260062.1 ‘Review Late Charge Pollies atthe Customer or Transaction Levels Alter defring ll the setup above, you asscitethe profile dass atthe customer evel. You use the Late Charges tab atthe ‘Account or Sie level to inleate ho Tate charges shoul be calculated. custome: Exceptions Use the Late Charges tab atthe customer account or te levels to review ate charge setup detals defatted from the customer profile cass. You can change any setup option at ether te account ar ste lve Optorally set the AR: Use Statement, Dunning, and Late Cerges Site Profs profile option to contra which account she's late charge setup Is used by the Generate Late Charges program “Lansacion Fceotons Ifyou normally charge late charges for your customers past due debt items, but you want to exclude a specie bit tem from ate charge calculations, select the Exempt fom La Charges box nthe Transactions window for ‘at item. se Mette thas Fmt met tte nt ac As ame ___ Senor ts Suge Olseremena ony Sorento, Corse sation on ‘Goweaere apa remene + Clipe eet shag tg [SS] BP Generating Late Charges Use the Generate Lat Charges program to calculate late charges according to your organization's defined late charge poley You can submit this program in Draft made to create a batch of caf late charges that You can fest review, To review each bath, use one of two methods: + Review the Late Charges report, which the Generate Late Charges program automaticaly crates during program submission. Ths repertoulines the craft or nal te charges that were created Responsibility: Receivables responstbilty "Navigation: Lax Charges > Lace Charges Generate htps:suppor oracle. comlepmosfaces/DocumentDisplay?_afrLoop=27724737220585B8id=1250062.1&clsplaylndex=28 affWindowMode=08 ad... 8/11102972019 Document 1260062.1 Enter Parameter values: ieee) (Ger) (BH) Review the batch of ate charges onthe using the Late Charges Batches window. 1. View a tate charge batch: 1, Navigate to the Late Charges Batches window. 2 Select the operating unt, and execute a query forthe draft late charge batch that you want to review: 3. To make changes to indvidual charges ona draft interest invice, debit memo, or adjustment, chase the Lunes button, For eample, you cn delete incvcual charge lines. Or, you can change the numberof cays that Recevabls used forthe late charge calculation, 4. You can optionally dlez a craft ate cnarge batch inthis window by selecting Delete from the Edt menu. (thsi how you wud Reject a Late Charges Sath) '5. Once the batch has been modified, you should regenerate the fal late charge batch fom te Late Charges Batches window. Tis tells Receivables to ignore your te charge pocy and instead use the modified batch Information to create te final late charges. To generate te final ate charge batch: ‘a, Change the Mode to Final and Status to Ready, choos the Generate butter. Upon successful charge creaton, the batch status changes to Transferred, Lis. designed functionaty that once the ate charges program is run in Final mode fora given date, the program coes not alow you to run late charges forthe same. ase, ‘Responsibility: Recsvabes responsibilty: ‘Navigation: Late Charges > Batch Maintenance You can query for an existing batch: htps:suppor oracle. comlepmosfaces/DocumentDisplay?_afrLoop=2772473722058588id=1250062.1clsplaylndex=28_afWindowMods=08,_adl amt102972019 Document 1260062.1 pena eondpeoins trons paca ate on = aan sme ost upd ney sats ie Don Geers 1 fie — fame = rn fe 10 pares hs — rome es |. iow fina lat chargos hitpssuppor oracle, comlepmesaces/DocumentDisplay?_afrLoop=2772473722050588h Use these methods to view fal late charges: + Before executing a query inthe Late Charges Batches window, selet the Display Completed Batch box {Run the Late Charges report for a final ate charge bate. * Query the interest invoice ar debt memo inthe Transactions workbench, and view the transaction’ ne items, Each ine description indudes information about the overdve invoice that te charge ws crate for Avs SESSs f a ra "Rane ee. 1250062. 1Bclsplayindex=28_atWindowMode=08_adl.. 10/11102972019 Document 1260062.1 oracte i Late Charges Report Private and Confidential Regist D Sechnome Late Charge Baten 0000 Fe.2010 ‘Baten Name: Lo rage Sach 10000 0¢F66 2010, Invoice umber ‘Bae To: ee dorecn08 ‘Charge Caleuation Date: 2010-0208 Tcumeney. USD Imolcehumaer ices ste uate vn amount vera amount Daye Sas Besse" Sweets pr Sines This shows that Late Charges have Been sucessfully generated 3. Additions Resources To playback the recorded webcast seston on Late Charges, please review the Receivables Release 2 Late Charges Functional, sical tea Inthe My Orecle Support Recelvabes Community. You canals access the presentation POF and webcast {questions and answers va tis tread Dic fed what you sre ki f°? GB skin Comma. | Related Products + oracles Suite» Fhancal Maragemer > Cec to Cth» Oc Races > Transaction eed > Lnte Charge Keywords [AMOUNT OVERDUE; ALANCE FORWARD SLING; ASTOMER ACCOUNT; TEREST INVOICES LATE NAGE; SETUP DETAIL; SYSTEM OPTIONS; TRANSACTION WORKBENOH ‘Translations + volt Souee panes (Beko Tap ep e)218 Cae Mophareed,Lapeetes ad Temcf Ue Fay Serer |_aWindowMode=08adt.. 11/11 hitpstsupport oracle. comiepmosaces/DocumentDisplay?_atrLoop=27724737220S8588id= 1250062. 1cisplaylnde