Late Charges – Setup & Execution

Overview

Late Charges allow SIRE to calculate fees for overdue tenant invoices.

You can review a preview before generating late charge invoices.

Prerequisites

Intacct Item And Posting Configuration

Confirm that the LATEFEE item exists in Intacct and that it is mapped to the appropriate GL account in Order Entry > Setup > Transaction Definitions > Real Estate Invoices > Posting Configuration.

Property Setup

The property must:

• Be active.

• Have a last late charge date that is earlier than the new cutoff date, or no last late charge date.

• Have charge controls configured for the order entry items that should be subject to late charges.

If Subtotal Subject to Late Charges is enabled, eligible invoice subtotal and tax lines can also be included.

Lease Setup

Only current leases with configured late charge steps are evaluated.

The lease-level settings determine:

• Process By: Whether the calculation uses the total charge or remaining balance.

• Minimum Lease Balance: The minimum delinquent balance required for the lease to be processed.

• Suppress Charge Under: The minimum calculated late fee amount that can be generated.

• Exclude Paid Late Items: Whether fully paid invoice items are excluded from the calculation.

Late Charge Steps

Late charge steps define how the fee is calculated:

• Grace Days: The number of days before an overdue balance becomes subject to a late charge.

• Frequency: How often the late charge can be applied.

• Repeat Factor: Whether the charge is applied once or repeated for each eligible delinquent period.

• Calculation Type: Whether the charge is a flat amount, percentage, or the greater or lesser of both.

• Amount: The configured flat amount and/or percentage.

Access Process Late Charges

Go to Tasks > Manage Charges > Process Late Charges.

The screen lists properties eligible for late charge processing and displays the last late charge date for each property.

Preview Late Charges

Complete the processing details:

• Cutoff Date: The date through which overdue invoices are evaluated. It is also used as the invoice and due date for generated late charge invoices.

• GL Posting Date: The GL posting date associated with the generated transactions.

• Transaction Date: The transaction date associated with the generated transactions.

• Properties: The properties to include in the preview.

Select Preview Charges to calculate the potential late charges.

Review the Preview

Review the preview before generating invoices.

The preview can show:

• The tenant and lease associated with each late charge.

• The invoice items included in the calculation.

• The calculated late charge amount.

• The calculation period.

• The effect of minimum balance and suppression settings.

• Any rows that cannot be generated.

Do Not Post Charges

Use the Do Not Post Charges checkbox to exclude an individual late fee from invoice generation.

Select the checkbox when you want to review or retain the preview row but do not want SIRE to create that specific late fee. This allows you to override the calculated result without changing the property's or lease's late charge configuration.

Rows marked Do Not Post Charges remain visible in the preview but are skipped when Post Charges is selected.

Generate Late Charge Invoices

After reviewing the preview, select Post Charges.

SIRE creates the eligible late charge invoices using the cutoff date as the invoice and due date.

Late fees marked Do Not Post Charges are not included.

After processing, SIRE updates the property's last late charge date to the cutoff date. This also occurs when no invoices are generated for the property.

How Late Charges Are Calculated

Eligible Transactions

SIRE evaluates invoice items that:

• Have an invoice due date on or before the cutoff date.

• Are associated with an eligible property and current lease.

• Are configured to be subject to late charges.

• Meet the lease's late charge and balance requirements.

Subtotal and tax lines are included when the applicable property setting is enabled.

Calculation Base

The Process By setting determines the amount used as the calculation base:

• Total Charge: Uses the full invoice item amount.

• Remaining Balance: Uses the unpaid balance.

Leases below the configured Minimum Lease Balance are not processed.

Delinquency Period

The delinquency period begins after the configured grace days.

The period ends at the cutoff date or, when applicable, when the balance is paid.

Late Charge Amount

The configured calculation type determines the fee:

• Flat amount.

• Percentage of the applicable balance.

• Greater of the flat amount or percentage.

• Lesser of the flat amount or percentage.

Calculated fees below Suppress Charge Under are excluded.

Dates Used in Late Charge Processing

Frequently Asked Questions

Which Properties Are Available For Late Charge Processing?

Active properties with eligible current leases and configured late charge settings are available for processing.

Are All Invoice Items Included?

No. Only invoice items configured to be subject to late charges are included. Subtotals and taxes are included only when the applicable property setting is enabled.

What Is The Difference Between Total Charge And Remaining Balance?

Total Charge calculates the fee using the full invoice item amount. Remaining Balance calculates the fee using the unpaid amount.

Why Was A Late Charge Not Generated?

A late charge may be excluded because the lease is not current, the balance is below the minimum, the calculated fee is below the suppression threshold, the item is not subject to late charges, the item does not meet the date and payment rules, or Do Not Post Charges was selected.

Can I Review Late Charges Before Creating Invoices?

Yes. Generate and review the preview journal before selecting Post Charges.

What Happens When I Select Do Not Post Charges?

The selected late fee remains visible in the preview but is skipped when invoices are generated.

What Happens When No Late Charges Are Generated?

The property's last late charge date is still advanced to the cutoff date, and SIRE indicates that no invoices were generated.

Can I Process The Same Cutoff Date Again?

The last late charge date prevents the same period from being processed repeatedly. To process an earlier period again, use a cutoff date that is earlier than the property's current last late charge date.