UB> Adjustments and Fees> Generate Daily Interest Charges

Generate Daily Interest Charges

 

Summary

 

The Generate Daily Interest adjustment is used to apply daily interest charges to accounts that meet a customized set of aged balance calculations. Users can specify the interest charge rate and configure the date variables used to determine which accounts are eligible for inclusion.

 

Related Links

 

Click here for information on Adjustment Type Code Maintenance.

 

Step by Step

 

1     Create a new Adjustments and Fees batch. 

 

  • Open the Adjustments and Fees Batches window (UB> Adjustments and Fees). The Batches window will display all the open Adjustments and Fees batches.
  • Click here for information on Batch Processing.
  • Click the Create New Batch button to create a new batch. This will open the Create Batch window.
    • The Generate Daily Interest Charges process will overwrite any transactions that have already been entered into the Adjustments and Fees batch, so you must run the process in a new batch.
  • Enter a Batch Month and Batch Year. These fields will default to the current calendar period and calendar year and are used for reference only. The batch month and batch year do not affect the transaction or journal entry date of the transactions in the batch.
    • The fiscal period the transactions in the batch are posted to is determined by the Journal Entry date entered when creating the GL Distribution report in UB> Adjustments and Fees> GL Distribution. The transaction date of the adjustment transactions created by the process is set up in the Generate Daily Interest Charges window.
  • Click Create to create the new Adjustments and Fees batch.

 

2     Open the Batch Overview page. 

 

  • The Batch Overview page provides a general overview of the selected batch.

  • The left navigation menu displays all the steps in the Adjustments and Fees process.

  • In the main section you'll see information about batch steps that are currently processing, next available batch steps, and the last completed batch step.

    • Batch steps that are currently processing will display a blue indicator bar to alert you that the step has not yet completed.

    • Once the preceding batch step is complete, the next available batch steps will be enabled and you can select the next step you would like to run.

      • While some batch steps are optional, any batch step that includes the Required tag must be completed before the batch is allowed to proceed through to the Commit step.

  • The Batch Outputs section on the right will display any reports or exports that have already been generated in the Adjustments and Fees process.

 

3     Generate Daily Interest Charges. 

 

  • Select Generate Daily Interest Charges on the Adjustments and Fees menu to open the Generate Daily Interest Charges window.
  • Select the billing cycles in the Cycles section if you would like to run the process by billing cycle
    • Click the toggle next to the field title to select or deselect all the displayed cycles. These selection options appear in the other fields as well.

  • Select the services to generate charges for in the Services section.

    • If a service is attached to an account and the Exempt From Past Dues toggle is checked on the Account Maintenance screen (UB> Maintenance> Account> Service Rates tab), that account will not be included in the Adjustments and Fees batch even if it meets all other requirements.
    • You must select at least one service in the window.
  • Select the account statuses of the accounts you would like to include in the generate daily interest charges process in the Account Status field.
  • The Adjustment Type field is used to specify the adjustment type for the generated interest charges.
  • The Date field is used to specify the date that will be used, along with the Default Late Days field below, to determine which accounts are included in the interest charges.
    • The Default Late Days field represents the number of days that are allowed before daily interest charges will be generated.
    • The Late Days Age value will be used to determine if an account will be included in the batch. The Late Days Age is calculated as:
      • Default Late Days + (Date field - today's date) = Late Days Age
    • For example, if the Default Late Days field is set to 30, the Date field is set to December 15th, and today's date is December 30th, the calculation would be:
      • 30 + (December 15th - December 30th) OR
      • 30 + (-15) = 15
      • Because the Late Days Age is less than the Default Late Days in this example, the account would NOT be included in the batch.
    • For another example, if the Default Late Days field is set to 30, the Date field is set to December 15, but today's date is January 23rd, the calculation would be:
      • 30 + (December 15th -
  • The Daily Interest Charge field is used to specify the amount of daily interest that will be charged against the aged amount balance.
    • This number is stated as a whole number percentage. For example, 7.5% would be entered as 7.5000, NOT 0.0750.
    • The interest amount calculation will be:
      • (Aged Amount * Daily Interest Charge) * (Bill Days / 365)
  • The Interest Charges drop-down menu determines if the daily interest will be charged monthly or every time the Generate Daily Interest Charges step is run.
    • If one of the Once Per Month options is selected:
      • Any account with a previous daily interest billing with a transaction or post date (depending on selected option) in the current month will be skipped.
      • If no previous daily interest billing is found in the current month, the system will calculate Bill Days as the number of days between the last daily interest billing and today.
      • If no previous daily interest billing if found in the current month or any prior month, Bill Days would be calculated as (Age - Default Late Days).
    • If Always charge interest when run if Account qualifies is selected:

      • No check will be made to determine if a previous daily interest billing was made in the same month as today and the calculations will be the same as above.

  • The History Description field is used to specify the description that will appear on the interest transaction in the UB Account history.
    • If no History Description is specified, the description will default to "Generated Interest Charges."
  • Click the Submit button run the generate charges process.

 

4     Commit the UB Adjustments and Fees batch. 

 

  • Print a Proof List Report.
    • Generate the Proof List (UB> Adjustments and Fees> Proof List).
    • The Report Sort field is used to sort the Proof List by either Customer Account or Order of Input.
    • Check the Show Service Address toggle to include the service address of the lot associated with any UB accounts included in the batch.
    • Once the required report settings have been specified, click the Print button to print your report.
    • Click the options arrow on the right side of the Print button to see other print options.
      • Select PDF to print the report in the default Springbrook format.
      • Select Excel to export the report data to an Excel spreadsheet as unformatted data.
      • Select Excel (Formatted) to export the report data to an Excel spreadsheet that includes much of the Springbrook formatting found on the printed version of the report.
    • Click the Schedule icon next to the Print button in order to schedule the report to generate at a later date and time.
      • Enter a Date and Time to generate the report and click SUBMIT.
    • The Proof List will display the service balances being redistributed on each UB customer account included in the batch.
    • The services with a positive adjustment are the service balances that are being increased (reducing the negative balance) and the services with a negative adjustment are the service balances being reduced.
  • Print a GL Distribution Report.
    • Enter the Journal Entry date, select a Report Type, and generate the GL Distribution Report (UB> Adjustments and Fees> GL Distribution).
      • Once a Report Type is selected for a GL Distribution report, that report type will be automatically set as the default for all UB GL Distribution reports.
    • If you would like to recreate the GL Distribution Report after the batch has been committed, you can create a Transaction by Date Report (UB> Reports> Transaction by Date) for the committed Adjustments and Fees batch. Select the committed batch (UB> Reports> Transaction by Date> Batch Number field), include all cycles, and make sure the date filter includes all of the transactions in the batch.
  • Commit the batch (UB> Adjustments and Fees> Commit).
    • The Commit step is only enabled after you have generated all of the required reports on the Adjustments and Fees menu.