Credit Card Late Payment Fee Charged
Charging a late fee when minimum payment is not received by the due date.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Credit Card Receivable (Cardholder) | Asset (+) | 20.00 | - |
| Credit Card Late Payment Fee Income | Revenue (+) | - | 20.00 |
💡 Accountant's Note
Late fees are a significant revenue source for credit card portfolios. Under IFRS 15, they are recognized when charged (point-in-time performance obligation satisfied). They are added to the outstanding balance and trigger a credit risk flag in the monitoring system.
Practitioner & Systems Framework
💻 ERP Architecture
CMS automatically charges the late fee on the day after the payment due date if minimum payment has not been received. The fee is capitalized into the outstanding balance. IFRS 9 staging rules: a single missed payment triggers early warning monitoring; 30 DPD triggers Stage 2 assessment.
⚠️ Audit Flags
Auditors review the late fee income trend for unusual patterns. A spike in late fees may indicate portfolio stress. CBJ requires credit card delinquency (30+, 60+, 90+ DPD) to be reported. Late fees on Stage 3 accounts are recognized on a cash basis only.
📄 Required Documentation
CMS payment due date and receipt date log, late fee billing report, delinquency report by DPD bucket, and reconciliation of late fee income to CMS.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.