Introduction

The purpose of this process is to allow creation of delinquent charges for any unit account past due. This process will assess delinquent amounts on an invoice-by-invoice basis for each unit. Since the property management industry usually assesses late fees on unpaid invoices, or on specific invoices, the late fee process is handled differently than most late fees in different industries.

There are two different types of late charges able to be assessed, depending on the value in the 'Type' field, within Delinquency Info section of the Client Maintenance form: 0 - flat fee or 1 - % fee assessed outstanding balance. Note: a value of '0' assesses a flat dollar amount while a value of '1' assesses a % of the outstanding balance. A blank value assesses NO late charge.

In order to calculate late fees, each T/R invoice is assigned a due date. Except for auto invoicing, this duedate completely depends on the billing notice assigned in the Client Maintenance field: 0 - No notice, 1 - statements, or 2 - coupons. Auto invoicing always creates invoices with a due date of the beginning of the billing cycle.

Except as noted previously, invoices for non-statementing clients will be assigned a due date of the current date when created. Invoices for any client with a statementing billing notice type will be assigned a due date of the beginning of the next billing cycle. Therefore, changes to billing notice types can cause problems with delinquency calculations.

The basic rules for late fee creation are as follows:

1. The possible late charge types are:
   • if late.type = 1 => primary charges only !
   • if late.type = 2 => everything except: late fees, deposits, and legal judgements
2. Clients do not create late charges if:
   • 1) No late charge type exists
   • 2) Late charge amount/percent is zero (0)
3. If the current T/R financial period is not the last month of the client's billing cycle then:
   • 1) A system administrator (level >= 7) will be queried if they want to create late charges anyway
   • 2) If user is not a system administrator, late charges won't be created.
4. Customers not eligible for late fees are:
   • 'Z2' type customers (non-bill/inv customers)
   • 'Z3' type customers (non-bill/latefee customers)
   • 'Y' type customers (no late fee customers)
   • customers who have moved-in since the last inv date if the client uses a "statement" as a billing notice type
   • vacant units in an apartment-type client (chart = A, O, T)
   • invoice(s) balance less than or equal to late charge
5. The following types of charges will NOT have any delinquent fee assessed:
   • DELINQUENT FEE
   • DELINQUENT CHARGE
   • LATE FEE
   • LATE CHARGE
   • DEPOSIT
   • JUDGEMENT
   • Any invoice with a Delinquent Fee Critical G/L Acct# in it

In order to calculate late fees, it is important to figure out what the outstanding balance is for each customer. This is the important question whose answer is the basis for understanding the delinquent process, therefore always CLEAN-UP Customer accounts before running this process.