Late Interest Calculation Needs to Be Based on Net not Gross Invoice
(Doc ID 2330838.1)
Last updated on NOVEMBER 21, 2017
Applies to:Oracle Lease and Finance Management - Version 12.2.6 and later
Information in this document applies to any platform.
On : 12.2.6 version, Late Charges
OLFM Late Interest calculation needs to be based on Net not Gross invoice
Standard OLFM Late Interest calculation is based on the original invoice which was paid late. While it is possible to exclude specific streams, it does not appear possible to exclude the VAT which was applied to the original invoice. This conflicts with the expectation of the Mexican authorities, where the Late Interest should only be applied to the streams themselves, not the total including VAT.
For example, an invoice for 100.00 + 16.00 VAT = 116.00 is paid late. OLFM will calculate the Late Interest based on a balance of 116.00, but the business requirement is to only base Late Interest on a balance of 100.00.
Late Interest calculation needs to be based on Net not Gross invoice
The issue can be reproduced at will with the following steps:
1. Book a contract with a Late Interest policy enabled
2. Bill contract
3. Apply cash to the open invoices, where the receipt date is later than the due date of the invoices
4. Run Calculate Late Interest CP
5. Bill contract
6. Validate the basis on which the Late Interest is calculated
To view full details, sign in with your My Oracle Support account.
Don't have a My Oracle Support account? Click to get started!