RDPWin

Masters - Owners - Interest and Late Fees

Condominium Owner Account Module R3 required.

Process Interest and Late Fees for Owners

Globally post interest charges and late fees based on owner type, dates, balance, rate, and amount due. Use RDPDOS Option 182 from the System Manager menu to define a new "B7??" code to be used for "Late Fee Charge". Assign a general ledger account to this transaction code and leave the price blank. To post a late charge to all overdue owners, use Interest & Late Fees from the Month-End submenu of Options located in the Owner main menu.

Cancel

Once the Review or Posting process buttons are clicked, this button allows interruption of those actions. If interrupted, it is imperative that the review or posting be repeated and allowed to finish.

Display

Once a previous report has been selected, click the Display button to view that report. If the field is unavailable, then no previous reports exist.

Include 'N/R' Types

The check box Include N/R is enabled and used only when 'ALL' owners are selected and when checked includes owners with a type of 'N/R'.

Owner

When posting to a single owner, the owner information is displayed here.

Owner Type

Post to a single owner type or all at once using this drop-down list. When selecting 'ALL' owners, by default ALL means all active owners (excludes 'OLD' and types that begin with N/R). The check box Include N/R is enabled and used only when 'ALL' is selected.

Owners Posting Status

After Review or Post are clicked, the Owner Activity grid is updated as the system assesses charges. Upon completion, the number of owners with charges posted without problems is displayed in this field. The grid can be filtered using the Display radio buttons: All, Posted OK, and Skipped. Set this filter to "Skipped" to easily review which owner charges did not post. Some reasons why charges might be skipped:

If the owner is in use and being updated by another user in the system.
The interest and late fees program checks to see if the transaction code for the specified posting date already exists, if so it will not post that particular transaction.
If the balance on the owner doesn't match the running balance or the sum of all open balances the owner will be skipped.

Post

Click to globally post late fees based on parameters selected.

Posting Date

Enter or select the date from the calendar drop-down to designate the date that appears on the new transaction generated for any owners with a late balance due. Normally, this should be the current system date, which is the default. However, if working on owner statements from the previous month, backdate the transactions.

Review

Once all parameters have been set, click to review the report. RDP strongly suggests that all owner charges be reviewed BEFORE posting.

Select a Previous Report to View

Each time owner interest charges and late fees are posted, a report is generated. Click the down-arrow and select from the list of reports processed earlier than the current date.

Type of Interest Charge and Late Fee

Interest and late fees can be posted based on either an owner's balance on the selected cutoff date or on the current open balance of one or more transactions.

Cutoff Date Balance

Select a date from the calendar drop-down to base the charges on the owner's balance on the specified day not on any transactions with open balances. When this option is selected, the Include Payments field is enabled.

Include Payments and Credits Since This Date

Only available when Cutoff Date Balance is selected, check this box to calculate interest charges and late fees made since the cutoff date.

Minimum Age of Open Balance (Days)

Only available when Open Balance is selected, determine how old a transaction with an open balance needs to be before it qualifies for an interest charge or a late fee. The default settings is 30.

Open Balance

When this option is selected, the Minimum Age of Open Balance field is enabled. Open Balance displays the last line item that brought about the total amount outstanding. Select to post charges to owners with an open balance for a particular transaction code regardless of cutoff.

Rates and Amounts

Interest charges, late fees or both may be posted to owners using the rate and amount information below.

Amount

Enter the late fee amount to post to owners with a balance due. Example: enter 15.00 to post a $15 late fee. The flat dollar amount MUST be a positive amount.

Code (Rate Code and Amount Code)

On the Late Fee program these are display only fields and show which transaction codes are assigned to these two types of charges. They can not be packages code (packages are for reservations only).

Interest Charge

Check to post a percentage of the balance due. Enter the percentage rate into the Rate field. Enter 2.25 percent as "2.25", not ".0225". This amount is charged to the total of all open items that are older than the transaction cut-off date entered. For example, if the owner had 2 transactions of $250.00 each that were older than the cut-off date, the system would post: (250+250) *.0225=$11.25.

Late Fee

Check to post a flat dollar amount to any owner that has at least one open transaction older than the cut-off date input. For example, if the flat amount entered was $30.00, and the owner had one transaction of $10.00 that was older than the cut-off date, the system would post a $30.00 charge. If the owner had 10 transactions of $250.00 each, the system would still only charge $30.00.

Minimum Balance to Apply Interest Charge and Late Fee

Enter minimum balance due to qualify for late charge. Press <ENTER> to select all owners with a late balance due or enter the owner balance due to qualify for a late fee.

Minimum Interest Charge Amount

Enter the minimum late fee dollar amount. RDP posts the HIGHER amount of the minimum late fee or the percentage. If no calculated interest charge is lower than the Minimum Interest Charge Amount NO interest charge is applied to the owner. For example, assume the minimum balance due is set to $100 and the minimum late fee equals $20. If the percentage is 15%, an owner with a balance due of $99 does not qualify, an owner with a balance due of $100 gets a $20 late fee, and an owner with a balance of $200 gets a $30 late fee. Enter 0.00 to set no minimum balance. If no calculated interest charge is lower than the Minimum Interest Charge Amount, then NO interest charge is applied to the owner

Rate

Enter the percentage rate. Enter 2.25 percent as "2.25", not ".0225". This amount is charged to the total of all open items that are older than the transaction cut-off date entered. For example, if the owner had 2 transactions of $250.00 each that were older than the cut-off date, the system would post: (250+250) *.0225=$11.25.

Click these links for Frequently Asked Questions or Troubleshooting assistance.

04/05/2010