Modify Late Fee calculation methods and formulas

Currently, there's only one method to calculate late fees, i.e. past due balance x late fee%. Can more methods be added, such as to calculate based on past due balance x late fee% x # of outstanding days? In Student Billing, there are at least 3 methods to calculate the late fees. Can the transaction date for late fees be set to include "previous" month? Currently, only "current" and "next" month is available.

Also, the current calculation only includes past due balance once. For example, $100 is due September 30th, $50 is due October 31st. In October, late fee was charged for $100. Now we are in November, the $100 remains unpaid and outstanding, when generate late fees, the calculation only includes $50 due October 31st, not the $100. This does not make sense. In the business world, interests accumulate on all past due and outstanding amounts. Late fees should be charged on the total past due balance as of the set charge date. For simple interest, do not include past late fees into calculation. For compound interest, include past late fees into calculation (interest charged on top of interest).

  • Jing Jin
  • Nov 15 2022
  • Needs review
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  • Kaitlin Davis commented
    23 Nov, 2022 05:31pm

    Hi -- I agree with this and when I was testing the late fees aren't generating to what we would expect and how we currently generate late fees in the SB module in FE.

    We calculate the overdue balance x interest rate % x # days overdue / 365 days. Right now the late fees do not generate properly therefore we won't be able to use this feaure. I would think the system should be able to be set up where it gives us the option on how to generate the late fees on overdue balances.