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Late Payment Charges

Late payment charges are applied by a chase stage, not by hand. A stage with an action type of Late Payment Fee works out what to charge from a late payment profile, and either applies it or puts it forward for approval first.

What you need: the Credit Control section, the CRM Chasing permission, and Approve Chase Actions to decide a review. The profiles, rates and bands are configuration, maintained in CRM Setup under the CRM Configuration settings permission.

A late payment profile ties everything together and is what a chase stage points at. It decides which components make up the charge and how they are worked out.

A late payment rate is the interest side: the percentage and the basis it is charged on.

A late payment band is the fixed-fee side, banded by the size of the debt. Bands are shared across profiles, so the same fee ladder can be used by several pipelines without being retyped.

An assessment is what the platform produces when a stage fires: the calculation for one customer at one moment, recording which components applied and what each came to.

  1. A chase stage with the Late Payment Fee action falls due on a chase case.
  2. The profile named on the stage is assessed against the customer’s collectible overdue debt.
  3. Depending on the stage’s execution mode, the charge is either applied, or raised as a review on the chase case.
  4. Where it is a review, holders of Approve Chase Actions use Approve Late Charge or Reject Late Charge (which needs a reason), and then Complete Late Charge once it has enough approvals.

Important: a review is blocked while a safeguard hold blocking charges, or an active payment arrangement, covers the case. That is the point of the Block Late Payment Charges control on a hold: a customer in a payment plan or with an open dispute does not accrue fees while you work it out.

A pipeline with no currency of its own applies its minimum balance in each customer’s currency without converting. Active late-payment-fee stages need an exact currency, because a fee ladder cannot sensibly be applied to an amount in an unknown currency.

The Late-payment charges panel on Credit Control Analytics reports assessments, fixed fees, interest and the total for the selected period. Standalone assessments, ones not tied to a pipeline, are included where no pipeline or safeguard-class filter is applied.

Individual assessments appear on the chase case in the Action reviews panel while they are being decided, and on the customer’s charges afterwards.

Name, type, availability and enabled charge components.

FieldDescription
Profile Name
Profile Type
CurrencyCurrency of the principal bands and fixed fees in this profile
Active
Display Order
Annual Rate Margin (%)Margin represented by the stored annual rates, retained for policy evidence
VAT Rate
Allow Fixed Fee
Allow Interest

Profile, effective dates and stored annual rate.

FieldDescription
Profile
Effective From
Effective ToExclusive end date; leave blank for an open-ended rate
Annual Rate (%)

Profile, effective dates, principal range and fixed fee.

FieldDescription
Profile
Effective From
Effective ToExclusive end date; leave blank for an open-ended band
Lower Principal
Upper PrincipalExclusive upper principal limit; leave blank for the highest band
Fixed Fee