Definitions

Penalty - a fee borrowers pay if they violate the loan contract conditions. For example, if the loan repayment is delayed.

Penalty grace days or penalty tolerance period - is the number of days after an invoice due date when the penalty is not calculated.

• If the penalty grace days value is 0, then the penalty starts calculating right after the invoice is not paid by the end of the invoice due date.

• If the penalty grace days value is set to 1, the penalty starts calculating when the invoice is not paid by the end of the next day after the invoice due date. In this case, the penalty is calculated for two days (for the due date and the following day).

• If the invoice is fully repaid during the grace period, no penalty is applied for the receivable. If the invoice is not fully repaid during the grace period, the first day after the grace period penalty is applied starting from the invoice due date.

Penalty grace amount - a maximum invoiced overdue amount at which the penalty calculation is not applied. For example, the given penalty grace amount is 5:

• If the invoiced overdue amount is 4, the penalty is not calculated as it does not exceed the penalty grace amount of 5.

• If the invoiced overdue amount is 25, the penalty is calculated at 25 as it exceeds the penalty grace amount of 5.

Debt status code - status of a receivable/invoice indicating if the invoice is repaid in time. Possible values:

• NOT_DUE - invoice due date is not reached yet or invoice is fully paid or credited.

• DUE - invoice due date is reached, but the penalty grace period is not exceeded (less than the penalty grace days), or the remaining unpaid invoice debt amount is less than the penalty grace amount.

• OVERDUE - invoice due date has passed, and the grace period is exceeded. If the invoice debt amount is higher than the penalty grace amount, then the invoice is considered overdue.

The debt status is displayed on invoice/receivable and contract levels. It is also possible to search invoices by debt status.