You can calculate late charges against past due debit items for each customer, account, or site. Late charges are calculated according to your organization's late charge policy.

Your late charge policy indicates if you assess late charges against your customers and, if so, how those late charges are calculated. See: Setting Up Late Charges.

For example, you can set up your late charge policy to assess late charges using different calculation methods. You can also vary the charge based on the number of days that a payment is overdue; for example, you can assess increasingly higher charges as a payment becomes more overdue. You can even choose to assess a penalty fee in addition to any calculated late charges.

Once you define your late charge policy (one policy per organization), you can indicate for which customers you will assess late charges. You can assess late charges on a set of customers using a customer profile class. You can also exclude one or more customers, or one or more transactions, from late charge calculations.

Use the Generate Late Charges program to actually generate the charges. You can run the progam in draft mode to preview late charges and make corrections, if required. See: Generating Late Charges.

Receivables lets you decide how to account for late charges. You can also choose how to present late charges to your customers: as an adjustment against the original transaction; as an interest invoice; or as a debit memo.

Receivables calculates late charges independently of dunning and statements. To ensure that late charges appear on Receivables statements, as well as on dunning letters that Oracle Advanced Collections prints, you must run the Generate Late Charges program before you create statements or dunning letters.