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Charge schedule per tier does not prorate: Late Charges Is Not Generated Per Tier But Per Invoice. (Doc ID 1354447.1)

Last updated on FEBRUARY 25, 2019

Applies to:

Oracle Receivables - Version 12 and later
Information in this document applies to any platform.


On customer account, the following set up has been done:

Interest charge: Charge Schedule per invoice

Penalty Charge: Charge schedule per tier

When running the request "Generate late charges" the interest is calculated per invoice (which is OK).

However, the penalty is wrongly calculated :

on the 'Late Charges Report', for each invoice, the charge amount (field 'Charge') allocated is 100, which represents the value defined for the Tiers in window 'Charge schedules'.
As per the functionality, 100 should have been be prorated between the invoices based on the amount due.

Hence , this is not as explained in the AR implementation guide:
"Charge Schedule Per Tier
Receivables uses a fixed penalty charge (amount) for all the invoices in a tier
based on the schedule you specify in the Charge Schedule field. The fixed
charge is prorated between the invoices based on the amount due. For example,
if there are two invoices INVOICE01 and INVOICE02 each with an amount due
of $ 100 in a tier, and the fixed charge specified for the tier in the charge
schedule is an amount of $10, then Receivables calculates the total charge
amount as $10. The application then prorates the total charge between the two
invoices as $5 each."




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