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Administrator Guide
Last Updated: 2023-06-23
Steps: Set Up Interest and Late Fees Charges

Steps: Set Up Interest and Late Fees Charges

Review setup considerations for interest and late fees.
You can automatically calculate interest or late fees on past-due invoices and apply them to the original invoice.
To provide flexibility in how you set up your finance charges, Workday enables you to configure these options:
  • Charge a one-time or recurring late fees.
  • Charge daily or monthly interest.
  • Apply a grace period.
  • Set the default calculation rules for a company, customer, billing schedule, or customer invoice.
  • Override a rule for a customer.
  • Define when to generate the finance charge document.
  • Verify your configuration by running the process without generating a document.
  1. Access the
    Edit Tenant Setup – Financials
     task.
    Select the
    Enable Interest and Late Fees
     check box in the
    Customer Accounts
     section.
    Security:
    Set Up: Tenant Setup - System
     domain in the System functional area.
  3. Access the
    Maintain Interest and Late Fee Defaults and Overrides
     task.
    Specify rules as defaults for all customer. When you select both
    Interest Rule
     and
    Late Fee Rule
     as defaults, ensure that both the rules have the same
    Calculation Option
     of
    Daily
     or
    Monthly
    .
    You can also specify 1 interest rule and 1 late fee rule as an override for a given company, customer category, and customer group. You can't combine 2 interest rates rules or 2 late fees rules for a company by adding them in different rows.
    • Workday processes rules in the order they display in the grid. Once a field meets the conditions for a rule, Workday ignores any remaining rules in the grid.
    • To retrieve past due invoices for certain customers in a company, define specific rules first.
    • When none of the rules in the Override grid meet the specified conditions, Workday uses the default rules for all customers. If you haven't set default rules, Workday doesn't process any finance charges.
    • You can also create a separate customer group just for interest and late fee functionality. Later, when you define the override rules, you can easily assign them to the customers in this group.
    Security:
    Set Up: Interest Rate and Late Fee Rule
     domain in the Common Financial Management functional area.
  • Configure customer invoice layout for finance charges so that you can print interest and late fees documents.
  • Process interest and late fees to generate finance charges.