Set Up Interest and Late Fee Defaults and Overrides

Configure interest and late fee rules.

Security: Set Up: Interest Rate and Late Fee Rule
domain in the Common Financial Management functional area.

After you create finance charge rules, assign them to companies and customers so that you can automatically apply the interest or late fees to overdue invoices. You can also override these configurations by specifying the rules on a customer profile or on an invoice.

Access the

Maintain Interest and Late Fee Defaults and Overrides

task.

As you complete the task, consider these sections:

Option	Description
Apply To All Customers	When you specify both interest and late fee rules as default for all customers, ensure that both the rules have the same Calculation Option of Daily or Monthly . You can't combine a monthly rule with a daily rule.
Interest and Late Fee Overrides	Configure an interest rule or late fee rule 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.

Option

Description

Apply To All Customers

When you specify both interest and late fee rules as default for all customers, ensure that both the rules have the same

Calculation Option

of Daily
or Monthly
. You can't combine a monthly rule with a daily rule.

Interest and Late Fee Overrides

Configure an interest rule or late fee rule 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.

When you process finance charges, Workday applies these rules as defined.

You configure default interest and late fee rule for all your customers. You also set override rules for Company A. For Customer X, you define a different interest rule on the customer profile.

Apply To All Customers section	Interest Rule : 2% monthly Late Fee Rule : $25 monthly
Interest and Late Fee Overrides section	For company A, Interest Rule : 1% monthly Late Fee Rule : $5 monthly.
On Customer X profile: Customer Overview Payment Details	Interest Rule : 3% monthly

When you process finance charges for Company A, Workday uses the:

Override late fee rule of $5 for all customers in Company A.

Interest rule of 3% for Customer X, and a rule of 1% for the rest of the customers in Company A.

Set up calculation options to specify how you want to calculate finance charges.