Accruing Finance Charges (Oracle Receivables Help)


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Accruing Finance Charges

To accrue finance charges for past due debit items, set Accrue Interest to Yes in the System Options window. Receivables updates and increases the remaining amount due of each debit item assessed finance charges by the amount of the newly calculated finance charges.

If Accrue Interest is No but the Charge Interest option for this customer's profile class is set to Yes, Receivables prints finance charges on statements for the customers and customer sites for which you have chosen to charge interest and that are included in this statement submission. However, Receivables does not update the balance due of these debit items in the Transactions or Collections windows.

Use the following example to understand how Receivables accrues finance charges:

Example:

Invoice = $1000

Due Date = 01-OCT-93

Interest Rate = 1%

Days in Period = 30

Accrue Interest = Yes

You run the statements or dunning program to calculate finance charges on 31-OCT-93 and get the following results:

.01 * $1000 * 30 = $10
30

As of 31-OCT-93 you have: $10 finance charges (02-OCT to 31-OCT)

$1000 invoice

$1010*

* Since you are accruing finance charges, the amount of the finance charge is added to the amount due balance.

Accruing Finance Charges

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