Payment Terms Rule Groups

Navigate: ClosedTax > Accounts Receivable > Payment Terms Mapping and Setup > Payment Terms Rule Groups

Description

The payment terms rule groups set each variation in roll type, balance of charges, unpaid installments, penalty class, and discounts used when applying penalty, interest, and discounts. Variations of minimums and tolerances also require separate groups. A group can consist of just one rule or could be more than one rule as needed for your jurisdiction's calculation variations for penalty, interest, and discounts.

NOTE: Include each rule in a late payment rule group to be considered during calculations.

NOTE: For discounts, the discount calculation does not have tolerance in the Group setup. There is no installment discount minimum or bill discount minimum. Also, the discount amount cannot be locked nor can discount amount calculation be stopped using flags.

IMPORTANT: Correct effective dates are critical for the setup for interest, penalty, and discounts. The effective date of the earliest rates should be set back earlier than any possible tax bills that would need calculation of terms rules. Each change to a rate over the course of time must have the corresponding effective date change for its setup.

Steps

  1. On the Search for Payment Terms Rule Groups screen, click Add in the Existing Late Payment Rule Groups panel, or click Edit for an existing item in the grid.

    CAUTION: Use care when editing or removing an existing group.

  2. On the Set Up Payment Terms Rule Groups screen, enter a group name, description, and priority for the rule.

  3. In the Group Attributes panel, click Add, or click Edit for an existing item to open the Group Attributes pop-up.

    • Make a selection from the Attribute (bill level) and Action drop-down lists.

    • Enter an attribute value.

    • Click Finish to close the pop-up.

    • Repeat these steps for each condition that must occur before applying penalty and interest.

      • Examples of attributes and values:

      Attribute

      Action

      Attribute Value

      Balance of Charges

      Is Equal To
      Is Not Equal To
      Is Less Than
      Is Less Than Or Equal To
      Is Greater Than
      Is Greater Than Or Equal To
      Is Any Of
      Is None Of

      Enter a dollar amount.

      Number of Unpaid Installments

      Select from the installments listed.

      Roll Type

      Select a roll type from those listed.

      Penalty Class

      Select a penalty class from those listed.

      Revenue Source

      Select a revenue source from those listed.

    • Click Remove in the Group Attributes title bar to delete a group.

      NOTE: Deleting a group does not change any of the charges already applied.

  4. Enter the minimum penalty and minimum interest per installment, if any. This is the minimum dollar amount for a penalty or interest charge, overriding a rate calculation that falls below this amount.

  5. Enter the minimum penalty and minimum interest per bill, if any. This is the minimum dollar amount for a penalty or interest charge, overriding a rate calculation that falls below this amount.

  6. Enter the penalty balance and interest balance for the tolerance per installment. An installment must have a balance equal to or greater than these amounts for penalty/interest calculation to occur on the installment.

  7. In the Selected Late Payment Rules panel, select each rule that applies to this group, or select the checkbox in the panel header to select all.

  8. Click Savein the Command Item bar.

    • Click Cancel to return to Search for Payment Terms Rule Groups screen.

    • Click Close to end the task.

Prerequisites, Dependencies, and Setup

Calculating late payments – Each late payment rule must be included in a late payment rule group in order to be considered during calculations.

A/R

Set up the Penalty Classes.

Set up the Payment Terms Rules.

Configuration Menu

  • Systypes –  Bill Level Criteria Fields is the system systype to provide the roll type selections for the attributes on Set Up Late Payment Rule Groups.