If finance groups (configured in Admin Console > Data Management) are set up to impose a finance charge on late payments, subscribers would be assessed a late fee whenever a Minimum or Maximum E-Pay Charge (entered in the Accounts Receivable Settings table) defers invoicing.
The IDI platform can be configured to avoid imposing the finance charge.
To avoid imposing Finance Charges on Minimum E-Pay Charges (while preserving overall finance charge capability)
Configure the solution to ensure that no fees are charged when the Minimum E-Pay Charge is invoked by setting the Minimum Balance on the Finance Group (in Data Management) greater than or equal to the Minimum E-Pay Charge (in Accounts Receivable Settings).
Example: If the Minimum Balance is set to 10.00, set the Minimum E-Pay Charge to 10.00 or less (e.g., 5.00 shown below). In this case the Rate/Fee value will not apply when the Minimum E-Pay Charge is invoked.
Note
With this setting, the Rate/Fee will still apply when the Maximum E-Pay Charge is invoked (as well as for other finance charge scenarios).
Finance Group Setting (in Data Management)
Accounts Receivable Setting
When Maximum E-Pay Charge Results in a Finance Charge: Tracking Accounts
With this setting there is the possibility for an account to not be invoiced month-after-month, and for late fees to accrue as a result.
Users must have a process in place and take care to track and troubleshoot accounts where invoicing is not occurring due to Maximum E-Pay Charge.
Example: If Maximum E-Pay Charge is set to 500.00...
...and the balance on an account = 501.00, the account will not be invoiced and may be subject to a late fee (depending on the Finance Group Rate/Fee setting). If no action is taken on the account to correct this situation, the balance will continue to grow (even if the charge for the next month is below the maximum threshold), the account will not be invoiced in the next billing period, and another late fee will be applied.
Month
E-Pay Maximum Charge
New Charge
Balance
Result
1
500.00
501.00
501.00
No Invoice, late fee = 10.00
2
50.00
551.00
No Invoice, late fee = 20.00
3
50.00
601.00
No Invoice, late fee = 30.00
See also: