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Administrator Guide
Last Updated: 2026-03-27
Generate Finance Charges

Generate Finance Charges

  • Configure the
    Interest and Late Fee Event
     business process and security policies in the Common Financial Management functional area.
  • Configure interest and late fee rules.
  • Define defaults and overrides for interest and late fee rules.
  • Set up calculation options for generating interest and late fees.
  • Security:
    Set Up: Interest Rate and Late Fee Rule
     domain in the Common Financial Management functional area.
After you configure finance charge rules and calculations, you can process interest and late fees to generate finance charges on past due invoices. You can specify the:
  • Processing date and output options.
  • Invoice company, currency, date, or due date.
  • Customer parameters.
Workday retrieves invoices that meet the criteria. You can select specific invoices to include in the calculation run. When you process the invoices, Workday:
  • Generates a new interest customer invoice document, or generates only a report so that you can view the calculations before you process the finance charges.
  • Displays the finance charges only after you approve the
    Interest and Late Fee Event
     business process. When you configure conditional approvals in your business process, and the approver denies the transaction, Workday doesn't create the finance charge document.
Workday excludes finance charge invoices from netting transactions.
Once you generate a finance charge document, you can't change the company, the customer, or the currency fields. Workday also prevents these actions on the original invoice:
  • Cancel.
  • Change.
  • Credit and rebill.
  • Edit
  • Update lines.
To take these actions, you must cancel all prior finance charge invoices related to the original invoice.
However, when you use a future
Process Date
, Workday includes past due invoices until that period and charges interest and late fees on them. Once, you generate a finance charge, you cancel the finance charge invoice but can't process further charges again until after that period.
To generate finance charges automatically, you can access the
Schedule Process Interest and Late Fees
 task instead. It enables you to process large volumes of customer invoices easily. To generate a full month finance charge, set the schedule to run daily.
When you process fees manually, Workday retrieves a maximum of 1,000 invoices per run.
  1. Access the
    Process Interest and Late Fees
     task.
  2. As you complete the task, consider:
    Option Description
    Process By
    Select:
    • Daily Calculation Rules
       to process fees for the current month.
    • Monthly Calculation Rules
       to process fees for the previous month.
    Workday only includes rules that have the
    Calculation Option
     of
    Monthly
     regardless of the processing frequency. Based on the processing rule you select, Workday displays additional fields for further defining the process dates.
    Process Month
    Workday displays this option only when the
    Process By
     prompt is
    Monthly Calculation Rules
    . Workday automatically sets it to the current month.
    You can modify the month but Workday sets the
    Process Date
     to the last date of the specified month. The last date generates a new finance charge invoice each month, given you set the
    Days to Generate Interest Document
     to
    0
     in the associated late fee rule.
    When you use the
    Schedule Process Interest and Late Fees
     task, Workday displays
    Process Month Option
     prompt instead. You can specify current month, month before or after the schedule date options to define when the scheduler is run.
    Example: You set the
    Process Month
     to
    Month Before Schedule
    . When you schedule the process to run on July 2, Workday calculates finance charges on June 30th, as it's the last date of the prior month.
    Process Date
    Workday displays this option only when the
    Process By
     prompt is
    Daily Calculation Rules
     and automatically sets it to the current date.
    When you use the
    Schedule Process Interest and Late Fees
     task, Workday displays
    Process Date Option
     prompt instead and enables you to specify current date, first day of current or previous month, last day of current or previous month, or number of days before or after the schedule date.
    When you process finance charges, the interest and late fee calculation run looks at all open invoices and determines invoice eligibility based on the process date specified. Workday also verifies if eligible invoices have prior interest and late fee charges. If they do, Workday retrieves only invoices that have a calculation run before the process date specified.
    Next Process Date
    When you process interest and late fees on a schedule, Workday automatically populates this field to let you know when we next process the finance charges.
    Only Include Eligible Invoice as of Run Date
    Workday displays this option only when the
    Process By
     prompt is
    Monthly Calculation Rules
    .
    Select this check box when you want to run the finance charge process daily but have the
    Process By
     prompt set to
    Monthly Calculation Rules
     option. If you process interest and late fee in the middle of the month, then Workday includes only those invoices that are eligible on the run date, including the grace period. Workday excludes any invoice that has a due date after the run date even if the date is within this month.
    When you process interest and late fee again on another day within the same month, Workday ignores invoices that already have a finance charge.
    Output Options
    Select 1 option:
    • Reporting Only
      : Generates only a calculation that you can use in custom reports, enabling you to view the finance charges before you process them.
    • Create a Finance Charge Invoice
      : Processes finance charge on customer invoices with the same company, customer, and currency and groups them in lines to generate 1 invoice. Generates only 1 finance charge invoice for a given month. Once you generate a second finance charge invoice, you can't modify the first invoice.
    • Create a Finance Charge Invoice Adjustment
      : Creates an adjustment with 2 lines, one each for both interest and late fees.
    • Create a Separate Finance Charge Invoice Adjustment
      : Creates 2 adjustments, one each for only interest charge and another for late fee charge.
    You can pay the finance charge or write it off. Once Workday generates the finance charge invoice or an adjustment, you can't modify the original invoice.
    Workday excludes sponsor invoices, student invoices, and invoices that are part of in-progress payments, write-offs, adjustments, or credit-rebills.
    Finance Charge Invoice Date
    Workday displays this field only when you set the output option to generate a finance charge document. By default, Workday sets the date on the finance charge invoice to the
    Process Date
     and generates a document when you run the process.
    When your finance rules use a monthly calculation option, Workday sets this invoice date to the last day of the process month. You can enter a different date to meet your business needs.
    When you schedule the process, you can also specify days before or after the schedule date to generate the finance charge invoice document. You can view the exact date that displays on the invoice document in the
    Next Finance Charge Invoice Date
     field.
    Invoice Date Criteria
    You can further filter the calculation output by specifying invoice date and invoice due date ranges that are on, after, or before the process run date.
Workday generates a report, a finance charge invoice, or an invoice adjustment document based on the specified output option. Every time you run this process, Workday provides a snapshot of the rule and the calculation configurations.
View finance charge details for an invoice on the
Find Interest and Late Fee Calculation Runs
 report. When you charge both interest rate and late fee, Workday displays a separate line for each charge.