Guidelines for Processing Interest Invoice Late Charges by Legal Entity

You can generate separate late charges as interest invoices for each legal entity associated with an overdue transaction. These separate late charge interest invoices apply to each legal entity associated with the active ledger of the business unit of overdue transactions.

When you set up interest invoice late charges by legal entity, a run of the Create Late Charges process performs these operations:

• Generates a separate late charge interest invoice for each legal entity associated with the active ledger of the business unit of the overdue transaction.

• Replaces the balancing segment value of the receivable and revenue account code combinations of the late charge interest invoice, as defined in Receivables system options, with the balancing segment value assigned to the legal entity of the overdue transactions.

Set Up for Interest Invoice Late Charges by Legal Entity

To set up for interest invoice late charges by legal entity, you must:

• Complete the setups for recording late charges as interest invoices.

• Create a lookup code to enable the replacement of the legal entity balancing segment value.

To create a lookup code for the replacement of the legal entity balancing segment value:

1. Navigate to the Manage Receivables Lookups page.

2. Search for the AR_FEATURES lookup type.

   If the lookup type AR_FEATURES doesn't exist, create this lookup type in the Manage Standard Lookups page.

3. Select the AR_FEATURES lookup type and click the Plus (+) icon to create a new row for entering the lookup code.

4. In the Lookup Code field, enter AR_LATE_CHARGE_BSV_OPTION.

5. Check the Enabled box to activate the replacement of the legal entity balancing segment value.

6. In the Start Date field, enter the date that this lookup code becomes active.

7. Complete the other lookup code fields according to your business requirements.

8. Save your work.

When the AR_LATE_CHARGE_BSV_OPTION lookup code is activated, a run of the Create Late Charges process replaces the balancing segment value of the receivable and revenue accounts defined in the interest invoice transaction type assigned to the Interest Invoice Transaction Type field in the Late Charges section of Billing and Revenue Receivables System Options for all legal entities of overdue transactions that don't have multiple balancing segment values.

If any legal entity has multiple balancing segment values assigned, then the Create Late Charges process doesn't replace the balancing segment value of the receivable and revenue account code combinations but instead retains the default values.

Example of Generating Interest Invoice Late Charges by Legal Entity

The following example illustrates how a run of the Create Late Charges process generates interest invoices by legal entity and manages balancing segment values.

The Interest Invoice Transaction Type assigned to Receivables System Options for the business unit has the following receivable and revenue accounts (Company-Account-Activity-Cost Center-Intercompany-Project-Site-SubAccount, with the Company segment defined as the primary balancing segment):

• Receivable Account: 01-1410000-3-1010-00-000-C-0

• Revenue Account: 01-210000-3-1010-00-000-C-0

The business unit has three legal entities: Vision Operations, Vision Services, Vision Foods.

This table describes overdue customer transactions as of the date the late charges are calculated (all transactions belong to the same business unit):

Transaction Number	Transaction Date	Due Date	Legal Entity	BSV
I-101	4/9/2018	5/9/2018	Vision Operations	01
I-102	3/19/2018	4/3/2018	Vision Services	02
I-103	4/22/2018	5/21/2018	Vision Services	02
I-104	3/5/2018	4/19/2018	Vision Foods	03, 04

This table describes the resulting interest invoices and balancing segment value assignments generated for each legal entity after a run of the Create Late Charges process:

Late Charge Batch	Interest Invoice Number	Legal Entity	Overdue Transactions	Interest Invoice Receivable Account	Interest Invoice Revenue Account
2030 05-31-2018	2001	Vision Operations	I-101	01-1410000-3-1010-00-000-C-0	01-210000-3-1010-00-000-C-0
2030 05-31-2018	2002	Vision Services	I-102, I-103	02-1410000-3-1010-00-000-C-0	02-210000-3-1010-00-000-C-0
2030 05-31-2018	2003	Vision Foods	I-104	01-1410000-3-1010-00-000-C-0	01-210000-3-1010-00-000-C-0

• Interest Invoice 2001 has the balancing segment value assignment 01 with legal entity Vision Operations.

• Interest Invoice 2002 has the balancing segment value replaced as 02 with legal entity Vision Services.

• Interest Invoice 2003 has the balancing segment value retained as 01 with legal entity Vision Foods.