Late Charges is an area of functionality that has steadily been enhanced since it was first introduced as Finance Charges in Release 11i. In Release 12, it now includes both interest and penalty charges, and has more flexibility in calculation, documentation and storage of the charges. Additionally in Release 11i, users had to run the Dunning or Statement process to kick off calculation of finance charges, but in Release 12 late charges is a standalone process.
You can assess late charges against past due debit items for each customer, account, or site. The calculation of late charges is determined by your late charge policy. You can set up your policy to control various decisions, such as whether you assess late charges, and how those late charges are calculated. Another step of the setup defines how you want to document your late charges and present them to the customer. The options are:
You can customize the way Late Charges are created by defining Interest Tiers and Charge Schedules, then associate these records to the customer profile. You can define a different late charge policy per customer profile class. When you assign a customer profile class to a customer, the late charge policy is defaulted to the customer account, but you can change those values. You can also define a late charge policy at the site level. Additionally, this functionality allows further customization of calculation based upon transaction types.
Use the Generate Late Charges program to calculate late charges according to your organization's defined late charge policy. You can submit this program in Draft mode to create a batch of draft late charges that you can first review. If you wish to amend any of the calculations, or even delete a charge, you can do this via the Late Charges batch screen. Once you are happy with the final listing of charges, you change the status and mode of the batch and the revised charges will be applied.
The following documents provide an excellent insight into this functionality:
Additionally, we recorded a webcast on Late Charges Functionality, which is available for playback (DocID 740966.1)
- Choose Oracle E-Business Suite in the List of Values
- Choose FinancialsTopics included in the Webcast: