Proposal Summary
This proposal outlines a comprehensive solution for creating new invoices for invoices that are overdue by 45 days with the same PO# as the original invoice.
Requirement
Corp Design USA wants to replace the old method of adding item lines named “Order Penalty” in the same invoice as late fee when the invoices are overdue by, creating a new invoice for this fee with the same PO# as the original invoice and inside that invoice there should be the fee but the line name should be changed to “Late Payment Fee” instead of Order Penalty and on the description it should say “Payment must be received within terms. Your account will be charged a 5% late fee and a 1.5% accrued interest monthly thereafter”.
Deliverables
- When an invoice remains unpaid for 45 days, a new invoice will be generated from the original one. This new invoice will amount to 5% of the total due in the original invoice.
- The tran date will be considered for calculating the 45 days due.
- The new invoice will be created with other charge item named “Late Fee Payment” and description as “Payment must be received within terms. Your account will be charged a 5% late fee and a 1.5% accrued interest monthly thereafter”.
- For every 30 days following the initial 45-day period, additional item lines will be added to the new invoice. These lines will feature a “Late Fee Payment” item, with the amount calculated as 1.5% of the total due from both the original and new invoice.
- If the penalty invoice is paid while the original invoice remains unpaid, another penalty invoice will be generated with amount 1.5% of the overdue amount. It will be generated within 30 days of the date when the last penalty item was added.
- If the original invoice is paid, and the penalty invoice remains unpaid, 1.5% will be applied to the penalty invoice monthly thereafter.
Assumptions and Limitations
This will be applicable to the invoices created after the update is deployed.
Questions
As we are updating from the old method to new method can you clarify what we have to do with invoices that are currently open and have had penalties applied using the old method
Estimated Effort
Estimated Effort – 20 Hours