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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Late payment per trans...
Finance | Project Operations, Human Resources, ...
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Late payment per transaction

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Posted on by Jo.L 115

hi all, 

We have the following business-case: the company needs to charge a customer 25.00 USD per overdue transaction. (to be run every month)  Afterwards, if needed, interest-charges need to be calculated and send to the customer. Off course we need to be able to waive, reinstate the fee etc... 

I am currently focussing on setting up the 25.00 USD fixed fee per overdue transation but i am not succesfull as i am using the interest-code and define a fee to be applied but it does not apply it per transactions off course. It just adds it at the bottom of the interest-note as if it is to cover the expense of handling overdue transactions. 

Any suggestions on how to implement this? Is the fee via collection-notes a better alternative? 

kind regards, 

Jo

  • Jo.L Profile Picture
    Jo.L 115 on at
    RE: Late payment per transaction

    hi Ludwig,

    Thank you for all the information & support. I have created an internal change request so the business-requirement can be reviewed by our developpers.

    kind regards,

    Jo

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Late payment per transaction

    Hello Jo,

    Have you made some progress in regards to this issue?

    Is there anything else the community can help you with?

    Best regards,

    Ludwig

  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Late payment per transaction

    Good morning Jo,

    If an interest amount is calculated and posted then you can calculate and add another interest on top of that. This works, however, not in one step but necessitates that you have posted the first interest calculation first.

    About your customization:

    Have a chat with a developer about this to get an idea how this can be achieved.

    Depending on what you want to have in detail things can get complex though.

    Just think about scenarios that involve multiple currencies, partially paid amounts / open balances, etc.

    Best regards,

    Ludwig

  • Jo.L Profile Picture
    Jo.L 115 on at
    RE: Ax2012 R2 - Late payment per transaction

    hi Ludwig,

    I got to verify the business-need again and I am sure we cannot use the interest-calculation function to charge a fee per overdue transaction as we need to charge 1.5% next to the overdue transaction fee. And once an intrest has been calculated (period driven), you cannot apply another additional intrest on top.

    So my preference is to use the intrest calculation for its orginal purpose and do not mess with it.

    Consequenty, we need to decide if we go for a customization on the fee handling for collection letters. 

    The way i see it:

    • multiple method of fee handling required
      • lump sum (current default Ax function)
        • apply a lump sum at the bottom of each reminder letter
      • transaction based (customization)
        1. apply a sum per overdue-transaction; added to the collection-letter total
    • collection letter sequence setup with a relation to the customer table (simimar to intrest calculation handling)
      • define reminder letters in relation to a specific customer or customer-group
        • we need this as in combination with the transaction-based collection fee, we cannot apply to all our customers. 

    any thoughts on the above? Something to think about? Would this be super complex?

    kind regards, 

    Jo

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Ax2012 R2 - Late payment per transaction

    Good morning Jo,

    I just wanted to follow up on this issue and ask if you have been able to get this issue resolved or at least made some progress.

    Would be great if you could keep us updated and let us know if you need any other help / information from the community.

    Many thanks and best regards,

    Ludwig

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Ax2012 R2 - Late payment per transaction

    ok.

    in your screenprint above a % for the interest seems missing.

    also check if you want to calculate interest per day. this can result in a very high interest amount.

    in your test system you should be able to do some tests and simulations.

    also, dont forget to link your interest setup in the customer posting profile.

    then you should be fine

  • Jo.L Profile Picture
    Jo.L 115 on at
    RE: Ax2012 R2 - Late payment per transaction

    hi Ludwig, 

    I expect in the early stages about 80% will be waived as this is major change for our customers... for the past years our company did not apply charges, interests etc... As market-conditions get thougher and cashflow more unther pressure, these functions gain on interest. So i expect the commercial guys in the beginning to want to play the "good cop" and waive the interest but i expect after a couple of months that the interests will simply have to be consistently applied and paid. 

    Further research learned me that there is a country specific function for France which allows to include a lump sum text for penalties that will be applied. But i am not in favor as it is unclear for how these penalties can be automatically applied upon due-date etc.... (source: https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/fra-configure-and-print-a-lump-sum-recovery-text-on-a-customer-invoice)

    kr, 

    Jo

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Ax2012 R2 - Late payment per transaction

    Hi Jo,

    You already mentioned that you need to waive interest charged to customers.

    Do you know how many (in %) of your customers are actually going to pay the interest?

    Best regards

    Ludwig

  • Jo.L Profile Picture
    Jo.L 115 on at
    RE: Ax2012 R2 - Late payment per transaction

    hi all,

    i have done a setup in our Ax Test environment but i am really uncertain if this is ok. It has the requested outcome for the first part of the business-case but i am not sure if we than are still able to charge interests afterwards as well.

    pastedimage1600179976949v1.png

    kr,

    Jo

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