Delinquency Information
Delinquency Information
Setting up late or delinquent fee parameters on this screen will generate fees only for the single assessment type chosen in this fee setup. To have the system generate late or delinquent fees based on all charges on the homeowner’s ledger, set this up on the Homeowners > Post Charges screen. If you are using universal navigation, click Accounting > Billing & Statements > Post Changes.
Select Setup > Association Fees screen. If you are using universal navigation, click Accounting > Settings > Association Fees.
On the Association Fee Setup screen, enter the number of days after the due date the payment is delinquent in the Balance Older Than field. CINC recommends that the day of the month not exceed 28 to accommodate the month of February.
If there is a minimum fee balance required for a fee to be delinquent, enter the amount in Days w/Minimum Fee Balance field.
NOTE: The charge must be older than the number of days in this field to receive a late fee. For example, if the charge date for the assessment was the 1st and the balance older than field is set to 15, the charge would not be older than 15 days until the 16th.
Enter the GL account number for Delinquent Account (late fees) collected and click the search button to link the account
NOTE: This will direct the system for creating GL entries when a late fee batch is posted.
Choose the Frequency of the late fee:
By Charge: Will assess a late fee one time for each charge date with a delinquent balance. For example, if the user sets up the delinquent Frequency by charge and the homeowner has three assessments but is delinquent on only one of them, the delinquent fee will be based on the balance of that single assessment.
Monthly: Will assess a late fee on the balance of the assessment with a delinquent balance. If Monthly is chosen, the late fees will continue until the charge is paid. For example, if there is a one-time charge on 01/01 that is not paid by the late date setup in the delinquent section a late fee will be charged. If that same charge is not paid by the late date in the next month, there will be another late fee charged and this will continue until the charge is paid in full or is below the day's w/Minimum Fee Balance value.
NOTE: The most common use of the Monthly option is for assessments that are billed annually that should be charged a late fee each month until the charge is paid.
Select the Day of Month the late fee batch will generate. For example, if a charge is assessed to the homeowner on February 1 and the balance older than is set to 28, and by February 28 the charge is still unpaid, the late fee would assess on March 1 based on the Day of Month selected.
NOTE: The system will determine whether to assess the delinquent fee in the month charged by adding the balance older than days to the charge day. If the result is more than the Day of Month selected, the delinquent fee will generate in the month following the charge date as reflected in the example above. Another example is: A charge is assessed to the homeowner on July 1 and the Balance older than is 10. If on July 11 the charge is still unpaid, the late fee would assess on July 11 based on the Day of Month selected.
If charging a collection fee for each delinquent fee, enter the fee amount and the general ledger account number in the Collection Fee field
NOTE: For clients using the Collections module, CINC recommends using it to assess collection fees to align the fees to generation of collection letters.
Select one of the following to calculate the Delinquent Amount:
Fixed Fee: The amount entered in the fixed fee field.
Percentage: An amount calculated as it is today.
Greater Of: The greater of the fixed fee or the calculated percentage amount.
Lesser Of: Enter the lessor of the dollar amount or the calculated percentage amount.
The last section is for setting up the Interest calculations and is to be used when interest is to be calculated on the individual assessment. (Use the Post Charges screen when interest is to be calculated on the combined total of multiple assessments).
Enter the number of days after the due date the interest should accrue in the Balance Older Than field. CINC recommends the day of the month not exceed 28 days to accommodate the month of February.
If there is a minimum fee balance required for a fee to accrue interest, enter the amount in the Days w/Minimum Fee Balance field.
Select the Day of Month the late interest should generate.
Enter the GL Account number for interest fees collected and click.
Enter the percentage (APR) used in the Percentage field. Do not enter the percent sign. For example, a 10% rate is set by typing the number 10 or 10.5% is set by typing the number 10.5.
If there is a minimum interest charge, enter the amount in the Minimum Interest Charge field.
After completing all fields, click Save. The assessment will appear in the grid under the association name. and must be generated on the Generate Billing screen for the charges to appear on the homeowners’ ledgers.
If a fee setup was created and homeowners will be billed different amounts based on property type, size etc., additional steps are required to set up and assign homeowners to sections. If the fee setup was flagged as Uses Homeowner Ratios, each homeowner must be assigned their percentage of the overall fee.