1. Localizations for European Reporting and SEPA Processing Implementation Guide
  2. Late Payment and Open Invoice Methods

Late Payment and Open Invoice Methods

When you specify that the system does not use the 30-day rule method, the system bases the delinquency fee calculations on the pending amount and the amount and date of the late payments.

This diagram shows how the system calculates delinquency fees when you do not use the 30-day rule method:

Late Payment and Open Amount Method.

The system:

  1. Calculates the delinquency fee on the lowest open amount from the invoice due date to the execution date.

    The lowest open amount is the original invoice amount minus any partial payments.

    If the period for which the lowest open amount is past due spans more than one interest rate, the system calculates the delinquency fees for the number of days for which the amount is past due for each interest rate in effect.

  2. Calculates the delinquency fee on the amount of each partial payment for the number of days that the payment amount was past due up to the date receipt cleared date or receipt GL date, depending on the processing options.

    If the period for which the partial payment is past due spans more than one interest rate, the system calculates the delinquency fees for the number of days for which the amount is past due for each interest rate in effect.