This month we’ll demonstrate how to automatically waive late charges inadvertently assessed when a contract payment is not processed on the date it was received. This Trail Mix solution can be applied in both IL9 and IL10.

If all payments received for a given date are not fully processed on that due date, the contract can be assessed late charges. Consequently, you may need to hold up aging the system forward until the payments are processed or manually waive the late charges.

Good news: InfoLease has the ability to automatically waive late charges assessed to a contract if the payment-received date is prior to the payment due date.

Take this example:

A check for $765.26 was applied to the January and February rental payments with a date received of 1/10/22. When the payment was processed, the late charges assessed for the January and February rentals were automatically reversed during payment posting.

This takes the burden off the customer service or cash team to manually identify and waive late charges.

To test or activate this functionality in InfoLease 9 or InfoLease 10:

  • Create an adjustment code to track the Automatic Waiving of Late Charges
  • Populate the Waive Late Charges Adjustment Code on the System/Lease Parameter with the adjustment code created for tracking Automatic Waiving of Late Charges

Have a Trail Mix Idea or Solution?

Do you have a pressing problem, idea or favorite tip for an upcoming Trail Mix post? Submit your ideas to trailmix@tamaracknow.com. If we use your idea, we'll send you a Tamarack Yeti-brand tumbler.

 
Written by

Tamarack

Tamarack Technology, Inc. is a leading provider of independent software, operational, and technology services supporting the equipment finance industry for more than 20 years.

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