Generating Overdue Charges

This chapter provides an overview of overdue charges, lists prerequisites, and discusses how to generate overdue charge invoices.

Understanding Overdue Charges

Receivables uses an open-item based approach to overdue charges that calculates overdue charges based on the number of days that an invoice is overdue. An important aspect of the overdue charge functionality is whether or not an overdue charge is considered a collectible item—and part of the customer’s balance—when it is created. Some businesses exclude overdue charges from the customer’s balance, while other businesses include them. Receivables supports both approaches and provides flexibility for how and when to create accounting entries.

Prerequisites

You must perform these tasks before you generate overdue charge invoices:

Define overdue charge IDs.
Assign default overdue charge IDs and remit to address to business units for overdue charge invoices on the Receivables Options - General 1 page.
Specify which entry types to include in overdue charge invoices when you define entry types and entry reasons.

If you do not select the Include in Overdue Charges check box for an entry type, activities with that entry type do not appear on overdue charge invoices.
Define automatic entry types and reasons for overdue charges.

If you enabled the entry event option and you create one overdue charge for all of a customer's eligible items, enter the entry event used to generate supplemental accounting entries for each entry reason.
If you enabled the entry event option and you create an activity for an item for overdue charges, or you create a new line item for the overdue charge, create a step for each type of overdue charge on the Entry Event Code Definition page and Entry Event Process Definition page.

For example, you would have two fields in each step: ENTRY_REASON and ENTRY_USE_ID. The entry use ID is FC-01 and the entry reason is the code that you defined for the overdue charge type, such as ADMIN.
Specify the following correspondence information for a customer:
- Override the remit to address and overdue charge ID defaults or place a global hold on customer documents, if needed.
- Specify the destination of overdue charges invoices as either the customer or the correspondence customer.
- Assign an address and contact to customers who should receive the overdue charge invoices.
- Specify whether you want item-based addressing or customer-based addressing.

Before you generate overdue charges, you must apply all your payments to items and run the Receivable Update process.

Generating Overdue Charge Invoices

This section provides an overview of overdue charges processing and discusses how to:

Enter overdue charges process parameters.
Run the Overdue Charge Print report.

Understanding Overdue Charges Processing

Use the following processes to generate overdue charge invoices:

The Overdue Charges Application Engine process (AR_OVRDUE) extracts customer and item data and populates temporary overdue charge records.

The process reviews customers’ open items and identifies those that are eligible for overdue charges. The system calculates the overdue charge for the number of days that are eligible for charging. If an item has exceeded its grace due days, the system uses the total days past due to calculate the charges. The system adds the grace due dates to the due date before generating overdue charges. These calculations are based on the amount, interest rate, fixed amount, and date basis that you specified when defining overdue charge IDs. The process extracts the customer and item data and populates temporary overdue charge records.
The Overdue Charge Print report (AR35000) generates the overdue charge invoices by merging the data from the temporary overdue charge records with a predefined layout.

Note. You can also run the Overdue Charges multiprocess job (AROVRDUE) that runs the Overdue Charges Application Engine process (AR_OVRDUE) and then runs the Overdue Charge Print process.

You run both the Overdue Charges Application Engine process (AR_OVRDUE) and the Overdue Charges multiprocess job (AROVRDUE) from the same Process Scheduler Request page. If you run the AR_OVRDUE process, you can review the results online after the process is done and then print the report separately.

Note. Each time you run a process, it generates a unique run control ID. The run control ID for the Overdue Charges process (AR_OVRDUE) is applied to all the invoices generated by the process. When the process completes, the system sets the number to zero. This enables you to run the Overdue Charges process concurrently with other PeopleSoft Enterprise Application Engine processes that are using different run control IDs.

After the processes complete, review the overdue charge groups using the pending item components, if needed, and run the Receivable Update process (ARUPDATE) to post the items.

Pages Used to Generate Overdue Charge Invoices

Page Name	Object Name	Navigation	Usage
Overdue Charges (process)	OVRDUE_REQUEST	Accounts Receivable, Customer Interactions, Overdue Charges, Process Overdue Charges, Overdue Charges	Enter the parameters for the Overdue Charges process (AR_OVRDUE) or the multiprocess job (AROVERDUE).
Overdue Charge Print	RUN_AROVRDUE2	Accounts Receivable, Customer Interactions, Overdue Charges, Print Overdue Charges, Overdue Charge Print	Run an Overdue Charge Print report (AR35000) that merges data from the temporary overdue charge records with a predefined layout and generates overdue charge invoices.
Overdue Charges (inquiry)	CUSTOMER_OC_CHGS	Accounts Receivable, Customer Interactions, Overdue Charges, Review Overdue Charges, Overdue Charges	View summary and detail information for all overdue charge invoices.
Last Overdue Charges	CUSTOMER_OC_CHGS	Accounts Receivables, Customer Interactions, Overdue Charges, Review Last Overdue Charges, Last Overdue Charges	View summary and detail information for overdue charge invoices that the Overdue Charges process created the last time it ran.

Entering Overdue Charges Process Parameters

Access the Overdue Charges page.

Enter the parameters for the overdue charge invoices that you want to create. The more parameters you define, the more limited the scope of the overdue charges.

As of Date	Enter the date that determines the last date that the overdue charge invoice includes data. The current date is the default.
SetID	Enter only a setID to create an overdue charge invoice for each correspondence customer in every business unit that references the setID.
Business Unit	Enter only a business unit to create an invoice for each customer in the business unit. Indicate a specific business unit. Note. If you select a single business unit, the system generates an overdue charge invoice for that customer even if the customer is on hold.
Overdue Charge Group	Enter an overdue charge group to extract data only for a specific overdue charge group. If you use overdue charge groups, leave this field blank to extract data for all overdue charge groups. Assign customers to an overdue charge group on the Correspondence Options page.
Group Unit	Enter the business unit that determines the business unit that the system uses to create the group and the pending items.
Prime Rate	Enter the prime rate value used to calculate the interest charge. This is required if you selected prime rate as the basis for the interest charge for the overdue charge ID.

This table lists the results of combining different parameters. It assumes that a parameter in the left column is combined with one or more parameters to the right.

Parameter	SetID	Business Unit	Customer ID
Business Unit	One invoice for each correspondence customer in the business unit.
Customer ID	A single invoice for the customer. If the customer is part of a correspondence customer group, the process addresses the invoice to the correspondence customer but includes only items for the specified customer.	A single invoice, for the customer, containing only items in the business unit. If the customer is part of a correspondence customer group, the process addresses the invoice to the correspondence customer, but includes only items for the specified customer.
Correspondence Customer	A single invoice, for the correspondence customer, containing items for all customers in the correspondence group.	A single invoice, for the correspondence customer, containing items in the business unit for all customers in the correspondence group.	A single invoice addressed to the correspondence customer, containing only items for the specified customer.

Running the Overdue Charge Print Report

Access the Overdue Charge Parameters page.

Overdue Charge Number

Displays the most recent number for the Overdue Charges process run control ID for which you have not printed the report. Select a different run control ID to print a different request.

Note. If a process retrieves data for 37 invoices, it assigns each invoice the same run control ID assigned to the Overdue Charges process. Using the run control ID in the report parameters enables you to generate overdue charge invoices using one report. Therefore, if you have 37 invoices, you do not have to run the Overdue Charge Print report 37 times.