Understanding Overdue Charges

PeopleSoft Receivables uses an open-item based approach to overdue charges that calculates overdue charges based on the number of days that an invoice is overdue. An important aspect of the overdue charge functionality is whether or not an overdue charge is considered a collectible item, and part of the customer's balance, when it is created. Some businesses exclude overdue charges from the customer's balance, while other businesses include them. PeopleSoft Receivables supports both approaches and provides flexibility for how and when to create accounting entries.