Defining Late Interest Charges
To define late interest charges, use the following components:
Late Interest Charges (LATE_CHRG_TBL).
Late Chrg Chartfield Override (late charge ChartField override) (LATE_CHRG_CF).
Payment Reason Codes (PYMNT_REASON_CD).
This section provides an overview of late interest charges and discusses how to define late interest charges, override late charge ChartFields, and define payment reason codes.
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
LATE_CHRG_TBL |
Define late charge interest rates. |
|
|
LATE_CHRG_CF |
For a particular Fund Code, replace particular ChartField values for the late interest charge distributions defined on the Accounting Entry Template and by inheritance. |
|
|
PYMNT_REASON_CD |
Assign reason codes to late payments to explain why the payments are late. |
|
|
Late Charge Information Page |
LATE_CHRG_SBP |
Override late interest charge information for a voucher. |
If you enable late interest charges on the Installation Options - Payables page, the system can automatically calculate interest charges for late payments to suppliers. Once you have set up the late interest charges, you can define late charge options at the PeopleSoft Payables business unit, origin, supplier and voucher levels of the control hierarchy.
Late interest charge calculation is primarily a U.S. federal feature.
Note: Late charges are calculated during pay cycle processing. They are calculated on the voucher gross amount and, once calculated, converted from the invoice currency to the payment currency, if necessary.
Use the Late Interest Charges page (LATE_CHRG_TBL) to define late charge interest rates.
Navigation:
Interest and Minimum Amount
Field or Control |
Description |
|---|---|
Interest Rate |
Enter the interest rate used to calculate late charges. |
Minimum Pay Amount |
Enter a threshold for the calculated late interest charge below which it will not be paid. |
Penalty |
Check to indicate that this is a late charge assessed directly by the supplier. Such charges are reported in Section E (Other Penalties) of the Prompt Payment Report (APS2001). |
Interest Calculation Days
Field or Control |
Description |
|---|---|
Days in Year |
Enter the days in the year based on the business needs. Some organizations choose 365 but, for others, 360 is a better choice. |
Simple Interest Days |
Enter the days subject to simple interest. The system calculates compound interest on the number of days the payment is past due minus the number of simple interest days. |
Max Pay Days (maximum pay days) |
Enter the maximum number of days the system computes interest. |
Use the Late Charge ChartField Override page (LATE_CHRG_CF) for a particular Fund Code to replace particular ChartField values for the late interest charge distributions defined on the Accounting Entry Template and by inheritance.
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Late charges are charged to late charge accounting entries generated by the late charge distribution defined on the Accounting Entry Template and by inheritance. You can override these distributions with other ChartField values for a particular Fund Code.
For example, if the budget has expired, you could override late charge ChartFields to hit an active budget. In this case, if you override the ChartFields, you must enter a budget start date, budget end date, and account. The additional ChartFields are optional for override.
Use the Payment Reason Codes page (PYMNT_REASON_CD) to assign reason codes to late payments to explain why the payments are late.
Navigation:
Definition Option
Field or Control |
Description |
|---|---|
User Applied |
Select to manually assign reason codes to individual payments at the voucher level. |
System Applied |
Select to automatically inserts reason codes at the business unit definition level. |
Reason Code Type
Field or Control |
Description |
|---|---|
Early, Late, or Cancel |
Indicate whether this reason code applies to a payment that is early, late or one that is cancelled. |