NetLoan - Applying Late Fees Automatically from a Payment Status
Overview
A payment status can automatically apply a fee - most commonly a late fee - when a loan enters it. You build the fee itself as a NetLoan Payment Type, then point the status's Issue Fee field at it. When a loan enters the status, the nightly job creates a one-time fee payment of that type on the loan, dated the day it runs. This article covers wiring a fee to a status; building the fee Payment Type is covered in the Payment Type articles linked at the end.
Prerequisites
- A custom payment status already exists. See NetLoan - Creating Custom Payment Statuses.
- A fee Payment Type already exists, configured with Fee as its Parent Type so it doesn't affect principal. See the Payment Type articles in Related Articles.
- The Automatic Modifications feature must be enabled and the NetLoan - Automate Jobs script scheduled, so the fee payment gets worked into the loan's schedule and billed. See NetLoan Script Automation Setup and NetLoan - Collections Scripts and Scheduled Jobs (in this series).
- A NetSuite role with administrator-level access to NetLoan Setup.
Setup Options
Navigation
- Top navigation: NetLoan > NetLoan Setup > NetLoan Payment Statuses, open the status that should apply the fee.
Fee field (NetLoan Payment Status record)
| Field Name | Field Type | Description | Dependencies | Options / Example | Field ID |
|---|---|---|---|---|---|
| Issue Fee | List/Record | The fee Payment Type to apply when a loan enters this status. When set, the nightly job creates a one-time NetLoan Payment of this type on the loan, effective the date the job runs. | Fee Payment Type must exist | Late Fee | custrecord_da_pmt_status_fee |
When the fee payment is created, it flows through NetLoan's normal fee handling: it's added to the loan's schedule as a separate line and picked up on the next billing run, rather than reducing the loan's principal balance.
Two ways late fees can be applied
It's worth understanding the distinction:
- Status-driven (this article): the Issue Fee field on a payment status creates the fee when a loan enters that status. The trigger is the status change.
- Payment Type Auto-Generation: the fee Payment Type itself can carry an Auto-Generation rule (saved search/query, timing, fixed or percentage amount, exclusions) that applies the fee on its own schedule, independent of collections statuses.
Use the status-driven path when you want the fee tied to a delinquency tier. Use Payment Type Auto-Generation when the fee logic stands on its own. They can be combined, but make sure you don't apply the same fee twice.
Considerations
The fee is created effective the day the job runs, so the timing of a status-driven fee follows when the loan enters the status, not a fixed billing date.
Use Case Specific Setup
Use Case: Flat late fee at 30 days past due
On a "Past Due" status (Parent Status = In Arrears, Days Overdue = 30):
| Field | Setting | Notes |
|---|---|---|
| Issue Fee | Late Fee (Payment Type) | Fee Payment Type with Fee parent type and a fixed Default Payment Amount |
When a loan crosses 30 days overdue, a one-time Late Fee payment is created and billed on the next run.
Use Case: Percentage-based late fee
When the fee should be a percentage of an amount rather than a flat value, configure the fee Payment Type to use the Auto-Generation Apply Percentage saved search (covered in the Payment Type Automation Setup article), then reference that Payment Type from the status's Issue Fee field the same way.
