Applying debtor overdue charges
You use this program to create interest charges on all debtor accounts that are overdue. You specify the date that charges become overdue for interest to be applicable. If charges have been printed on a statement but are now overdue, they will have interest calculated on them.
Tip: This program retains the same values that were used for your previous interest posting. If you have not yet done an interest posting then the fields will be blank.
Once you have closed off your interest postings, you can still modify or delete individual items using Debtor Charges Entry. Select Past Debtor Charges Postings.
To open the Debtor Overdue Charges window:
- Select Module > Debtors > Debtor Overdue Charges from the main menu.
The Debtor Overdue Charges window is displayed.
Debtor Interest Charges window key fields
Selections area fields
Field | Description |
|---|---|
Minimum Balance | Debtors with outstanding overdue balances less than this amount will not be charged any interest. |
Statement Group | Select the statement group containing the overdue charges. |
Student Campus | Select the campus the overdue charges are for. |
Charge Type | Select the type of charge to apply. You can select:
Note: When Fixed Amount is selected the amount charged is determined by the Amount field on the General tab of Fee Maintenance. See Debtor Fee Maintenance - General tab. |
Annual Interest Rate | Interest rate to be charged. This is used in conjunction with the Days of Interest to Charge field to determine the amount of interest that the debtors are charged. Note: This field and the following four fields are only active when Interest Rate is selected in the Charge Type field. |
Days of Interest to Charge | Number of days for which the interest is calculated. The interest amount is calculated by dividing this field by the total number of days in the year and multiplying by the Annual Interest Rate. Note: This field cannot be selected if the Charge Interest From/To fields are used. |
Charge Interest From/To | Date range that interest is to be charged. Note: You need to select the Calculate Overdue Amounts Daily field to use this calculation option. See Synergetic Financial Configuration - Debtors tab - Page 2 sub-tab in the Finance manual. Note: If a date range is selected, interest is determined by the actual balance the debtor had on each day, rather than the number of days. |
Rounding Direction | Select whether to:
|
Rounding Interval | Set the cent interval to round to. For example, to round to the nearest five cents, use a Rounding Interval of 5. |
Date to Determine What is Overdue | Date determines the charges that are outstanding. If a charge with an amount owing exists on a statement on or prior to this date, then it is classed as overdue. Number of days for which the interest is calculated. The interest amount is calculated by dividing this field by the total number of days in the year and multiplying by the Annual Interest Rate. Note: This field cannot be selected if the Charge Interest From/To fields are used. |
Fee Code | You need to have a fee code and general ledger code set up for interest received. See Maintaining debtor fees. |
Charge Date | Date recorded against the interest charge transaction, if overdue charges are applicable for the debtor. |
Additional Charge Description | Description which is placed on each individual charge line. This will assist the debtor to identify the charges. |
Posting Information area fields
These fields are used to identify the posting at a later stage.
Field | Description |
|---|---|
Posting Date | The date to post the transactions. The general ledger year end date and restrictions on the available posting dates are displayed for information. Note: If you try to post to a prior or future period, you are prompted to enter the word PRIOR or FUTURE to confirm that this is what you want to do. Postings to any period other than the current period may affect figures from other departments of your organisation. For example, general ledger figures are affected if you post to a prior period. |
Description | Enter a description for the charges, based on the selections you have made. |
| Automatically Close Posting | Clear if you do not want to automatically close the posting. |