Overdue Days
Aura keeps a count of the number of overdue days as of any given date thereby giving an aging to the amounts required. The overdue is always calculated based on Amount Required (and not Amount Requested). This is subject to thresholds and grace days.
End of Cycle for a Card Account is the date on which the liquidation for Interest Receivable on the Debit Balance of the account happens. If due to Holiday Treatment, the date of interest receivable liquidation is moved, the EOC date is also correspondingly moved.
Payment Due Date is the date by which the amount required has to be paid by the Client for the End of Cycle that has just gone by. If the Amount Required is not paid by this date (subject to Grace Days and Thresholds), it is considered to be Overdue. The due date is arrived at subject to the settings for the Holiday Movement.
End of Grace Days is the date which is arrived at after adding the Grace Days to the Payment Due Date, subject to Holiday Treatment.
Overdue amount and overdue days are calculated by invoice from the oldest cycle that is due. Thus, Overdue Days is calculated as Current Date minus the earliest Overdue Since plus 1. Overdue Since is generally taken as the Payment Due Date for the earliest invoice for which the Amount Required is not paid. In case there has been a manual Overdue Amount Adjustment, the Overdue Since is taken as the date on which the manual adjustment record is approved. In case of a manual Reset of Overdue Days, the Overdue Since date is taken as the date specified during the reset.
Calculation of Overdue days is explained below using an example.
Note:
End of Cycle (EOC) Date = End of Month
Payment Due Date (PDD) = 15 days after EOC
Grace Days = 0 days
End of Grace Days (EOGD) = PDD
Amount Required = 10% of Total outstanding
Treat Overdue as Balance = No
Amount Requested = Total outstanding
All amounts are in EUR.
Invoice Details as of 01-Feb-2014
| Statement ID | Start Date | End Date | Total Outstanding balance | Amount requested | Amount required | Payment due date |
|---|---|---|---|---|---|---|
| 000001 | 01-Jan-2014 | 31-Jan-2014 | 14000 | 14000 | 1400 | 15-Feb-2014 |
Overdue details as of 15-Feb-2014, assuming no payment is received:
| Creation date | Payment due date | Overdue Amount | Payment received | Overdue days | Overdue cleared on | Reason |
|---|---|---|---|---|---|---|
| 15-Feb-2014 | 15-Feb-2014 | 1400 | 1 | Payment Due Date |
Note: Creation Date could be PDD / Payment date / Manual creation date, depending on the type of record.
At the end of February 2014,
Outstanding balance increases to 20000 due to some debits in the account (could be transactions, interest, etc.)
Amount required
= 10% of Total Outstanding balance + Overdue amount
= 10% of 20000 + 1400
= 3400
Invoice Details as of 01-Mar-2014
| Statement ID | Start Date | End Date | Total Outstanding balance | Amount requested | Amount required | Payment due date |
|---|---|---|---|---|---|---|
| 000002 | 01-Feb-2014 | 28-Feb-2014 | 20000 | 20000 | 2000+1400 = 3400.00 | 15-Mar-2014 |
| 000001 | 01-Jan-2014 | 31-Jan-2014 | 14000 | 14000 | 1400 | 15-Feb-2014 |
Overdue details as of 15-Mar-2014, assuming no payment is received:
| Creation date | Payment due date | Overdue Amount | Payment received | Overdue days | Overdue cleared on | Reason |
|---|---|---|---|---|---|---|
| 15-Mar-2014 | 15-Mar-2014 | 3400 | 1 | Payment Due Date | ||
| 15-Feb-2014 | 15 Feb 2014 | 1400 | 28 | Payment Due Date |
18-Mar-2014 -- Payment received: 1200.00
Hence, Overdue amount in Overview Tab will show 3400 -- 1200 = 2200
Overdue details as of 18-Mar-2014
| Creation date | Payment due date | Overdue Amount | Payment received | Overdue days | Overdue cleared on | Reason |
|---|---|---|---|---|---|---|
| 18-Mar-2014 | 1200 | Payment received | ||||
| 15-Mar-2014 | 15-Mar-2014 | 3400 | 4 | Payment Due Date | ||
| 15-Feb-2014 | 15-Feb-2014 | 1400 | 31 | Payment Due Date |
At the end of March 2014,
Outstanding balance increases due to some debits in the account (could be transactions, interest, etc.)
Amount required
= 10% of Total Outstanding balance + Overdue amount
= 10% of 25000 + 2200
= 4700
Invoice Details as of 01-Apr-2014
| Statement ID | Start Date | End Date | Total Outstanding balance | Amount requested | Amount required | Payment due date |
|---|---|---|---|---|---|---|
| 000003 | 01-Mar-2014 | 31-Mar-2014 | 25000 | 25000 | 2500 + 2200 = 4700.00 | 15-Apr-2014 |
| 000002 | 01-Feb-2014 | 28-Feb-2014 | 20000 | 20000 | 2000+1400 = 3400.00 | 15-Mar-2014 |
| 000001 | 01-Jan-2014 | 31-Jan-2014 | 14000 | 14000 | 1400 | 15-Feb-2014 |
Modify overdue amount
In the above example the payments get allocated against the overdue amounts with oldest getting paid first. Thus, Aura automatically updates the overdue amount and overdue days.
If the user modifies the Overdue Amount, Aura will automatically recalculate the Overdue Days. The Overdue Days will be 0 when the Overdue Amount is 0. If there is any residue in the Overdue Amount column, the number of Overdue Days will be shown.
Note that the system will add the updated Overdue amount to the current amount required to derive the "amount required" in the next invoice
Case 1: Overdue Adjusted to 800.00 by manual action based on consultation with customer on 10-Apr-2014 -- before the Payment Due Date.
All existing overdues are treated as cleared
Overdue interest is calculated on this amount i.e., 800
Overdue days for the overdue amount is 1
Overdue details as of 10-Apr-2014, after the manual overdue adjustment:
| Creation date | Payment due date | Overdue Amount | Payment received | Overdue days | Overdue cleared on | Reason |
|---|---|---|---|---|---|---|
| 10-Apr-2014 | 800 | 1 | Negotiated with client. | |||
| 18-Mar-2014 | 1200 | Payment received | ||||
| 15-Mar-2014 | 15-Mar-2014 | 3400 | 27 | 10-Apr-2014 | Payment Due Date | |
| 15-Feb-2014 | 15 Feb 2014 | 1400 | 55 | 10-Apr-2014 | Payment Due Date |
Invoice Details as of 10-Apr-2014, after the above update:
| Statement ID | Start Date | End Date | Total Outstanding balance | Amount requested | Amount required | Payment due date |
|---|---|---|---|---|---|---|
| 000003 | 01-Mar-2014 | 31-Mar-2014 | 25000 | 25000 | 2500 + 800 = 3300.00 | 15-Apr-2014 |
| 000002 | 01-Feb-2014 | 28-Feb-2014 | 20000 | 20000 | 2000+1400 = 3400.00 | 15-Mar-2014 |
| 000001 | 01-Jan-2014 | 31-Jan-2014 | 14000 | 14000 | 1400 | 15-Feb-2014 |
If no further payments are received,
Overdue amount = Amount required from invoice (after the above update) = 3300.00
Overdue days will be updated automatically as 6 and 1 for the overdue records.
Overdue details as of 15-Apr-2014:
| Creation date | Payment due date | Overdue Amount | Payment received | Overdue days | Overdue cleared on | Reason |
|---|---|---|---|---|---|---|
| 15-Apr-2014 | 15-Apr-2014 | 3300 | 1 | Payment Due Date | ||
| 10-Apr-2014 | 800 | 6 | Negotiated with client | |||
| 18-Mar-2014 | 1200 | Payment received | ||||
| 15-Mar-2014 | 15-Mar-2014 | 3400 | 32 | 10-Apr-2014 | Payment Due Date | |
| 15-Feb-2014 | 15-Feb-2014 | 1400 | 60 | 10-Apr-2014 | Payment Due Date |
Case 2: Overdue Adjusted to 800 by manual action based on consultation with customer on 16-Apr-2014 -- after Payment Due Date
All existing overdues are treated as cleared
Overdue interest is calculated on this amount i.e., 800
Overdue days for the overdue amount is 1
Overdue details as of 16-Apr-2014, after the manual overdue adjustment:
| Creation date | Payment due date | Overdue Amount | Payment received | Overdue days | Overdue cleared on | Reason |
|---|---|---|---|---|---|---|
| 16-Apr-2014 | 800 | 1 | Negotiated with client | |||
| 15-Apr-2014 | 15-Apr-2014 | 3300 | 2 | Payment Due Date | ||
| 18-Mar-2014 | 1200 | Payment received | ||||
| 15-Mar-2014 | 15-Mar-2014 | 3400 | 33 | 16-Apr-2014 | Payment Due Date | |
| 15-Feb-2014 | 15 Feb 2014 | 1400 | 61 | 16-Apr-2014 | Payment Due Date |
As a result of the above update, the Invoice details for 31-Mar-2014 will NOT change.
Invoice Details as of 16-Apr-2014, after the above update:
| Statement ID | Start Date | End Date | Total Outstanding balance | Amount requested | Amount required | Payment due date |
|---|---|---|---|---|---|---|
| 000003 | 01-Mar-2014 | 31-Mar-2014 | 25000 | 25000 | 2500 + 2200 = 4700.00 | 15-Apr-2014 |
| 000002 | 01-Feb-2014 | 28-Feb-2014 | 20000 | 20000 | 2000+1400 = 3400.00 | 15-Mar-2014 |
| 000001 | 01-Jan-2014 | 31-Jan-2014 | 14000 | 14000 | 1400 | 15-Feb-2014 |
Reset Days
Reset days is possible only if Treat Overdue as Balance = Yes.
When there is a manual reset of the overdue days, there will be no change to the overdue amount / overdue interest calculation because of this change. Only status movement might be impacted due to this change.
When Payment is received, and if the total overdue amount is cleared, Overdue Since will be reset to null.
If Payment is received only for part of the overdue amount, Overdue Since will continue to be the one as entered by the user
On the next Payment Due Date, if the Overdue amount is not cleared, Overdue days will revert back based on the oldest unpaid Overdue record.
Take an example, where Overdue Details as on 15-Apr-2014 are as below:
Note:
End of Cycle (EOC) Date = End of Month
Payment Due Date (PDD) = 15 days after EOC
Grace Days = 0 days
End of Grace Days (EOGD) = PDD
Amount Required = 10% of Total outstanding
Treat Overdue as Balance = Yes
Amount Requested = Total outstanding
All amounts are in EUR.
Overdue details as of 15-Apr-2014
| Creation date | Payment due date | Overdue Amount | Payment received | Overdue days | Overdue cleared on | Reason |
|---|---|---|---|---|---|---|
| 15-Apr-2014 | 15-Apr-2014 | 4700 | 1 | Payment Due Date | ||
| 18-Mar-2014 | 1200 | Payment received | ||||
| 15-Mar-2014 | 15-Mar-2014 | 3400 | 32 | Payment Due Date | ||
| 15-Feb-2014 | 15-Feb-2014 | 1400 | 60 | Payment Due Date |
Overdue Days is Reset by manual action based on consultation with customer on 26-Apr-2014
Overdue details as of 26-Apr-2014, after the manual reset of Overdue Days:
| Creation date | Payment due date | Overdue Since | Overdue Amount | Payment received | Overdue days | Overdue cleared on | Reason |
|---|---|---|---|---|---|---|---|
| 26-Apr-2014 | 20-Apr-2014 | 7 | Negotiated with client | ||||
| 15-Apr-2014 | 15-Apr-2014 | 4700 | 12 | Payment Due Date | |||
| 18-Mar-2014 | 1200 | Payment received | |||||
| 15-Mar-2014 | 15-Mar-2014 | 3400 | 43 | Payment Due Date | |||
| 15-Feb-2014 | 15-Feb-2014 | 1400 | 71 | Payment Due Date |
During April, there are no further transactions or Payments.
Amount Required = 7200
Invoice Details as of 01-May-2014
| Statement ID | Start Date | End Date | Total Outstanding balance | Amount requested | Amount required | Payment due date |
|---|---|---|---|---|---|---|
| 000003 | 01-Apr-2014 | 30-Apr-2014 | 25000 | 25000 | 7200 | 15-May-2014 |
| 000003 | 01-Mar-2014 | 31-Mar-2014 | 25000 | 25000 | 4700 | 15-Apr-2014 |
| 000002 | 01-Feb-2014 | 28-Feb-2014 | 20000 | 20000 | 3400 | 15-Mar-2014 |
| 000001 | 01-Jan-2014 | 31-Jan-2014 | 14000 | 14000 | 1400 | 15-Feb-2014 |
Case 1: If no further payment is received till next Payment Due Date i.e., 15-May-2014:
Overdue days will be calculated based on the oldest unpaid overdue record.
Overdue details as of 15-May-2014, assuming no payment is received:
| Creation date | Payment due date | Overdue Since | Overdue Amount | Payment received | Overdue days | Overdue cleared on | Reason |
|---|---|---|---|---|---|---|---|
| 15-May-2014 | 15-May-2014 | 7200 | 1 | Payment Due Date | |||
| 26-Apr-2014 | 20-Apr-2014 | 4700 | 26 | Negotiated with client | |||
| 15-Apr-2014 | 15-Apr-2014 | 4700 | 31 | Payment Due Date | |||
| 18-Mar-2014 | 1200 | Payment received | |||||
| 15-Mar-2014 | 15-Mar-2014 | 3400 | 62 | Payment Due Date | |||
| 15-Feb-2014 | 15-Feb-2014 | 1400 | 90 | Payment Due Date |
Overdue days in Overview Tab will show 90 days, as it is the oldest unpaid overdue record.
Case 2: If payment is received on or before Payment Due Date:
On 05-May-2014, payment is received for the full outstanding amount of 25000.00 and hence, there is no overdue amount.
Overdue details as of 05-May-2014, after the above payment is recorded:
| Creation date | Payment due date | Overdue Since | Overdue Amount | Payment received | Overdue days | Overdue cleared on | Reason |
|---|---|---|---|---|---|---|---|
| 05-May-2014 | 05-May-2014 | 25000 | Payment received | ||||
| 26-Apr-2014 | 20-Apr-2014 | 4700 | 16 | 05-May-2014 | Negotiated with client | ||
| 15-Apr-2014 | 15-Apr-2014 | 4700 | 21 | 05-May-2014 | Payment Due Date | ||
| 18-Mar-2014 | 1200 | Payment received | |||||
| 15-Mar-2014 | 15-Mar-2014 | 3400 | 52 | 05-May-2014 | Payment Due Date | ||
| 15-Feb-2014 | 15-Feb-2014 | 1400 | 80 | 05-May-2014 | Payment Due Date |