LA A/R - Data Entry: Calculate Finance Charges

Calculate Finance Charges

This AR Data Entry routine allows you to assign finance charges to any outstanding invoices. This should be run before printing customer statements.

NOTE: In order for Finance Charges to be applied to customer records, you must have defined a Billing Code for these items (Preferences > Accounts Receivable > Finance Charge Item).


Posting Date — Identify the date as of when the finance charge will be applied to the customers record.

Cut-off Date — Identify the date after which no outstanding invoices will accrue a finance charge.

For example, if you enter April 1 as the Cut-off Date, no customers with outstanding invoices dated after April 1 will be assigned a finance charge, even though the Posting Date is set to April 11.

This routine consists of two levels, giving you the option to specify different finance charge rates depending on the amount owed:

Level 1 —
FC % is the percentage calculated on any outstanding balance (based on the Cut-off Date) that is lower than the entry in the Amount Under field. If the Amount Under field is blank or 0, then every balance due is calculated at the Level 1 FC Charge %.

Level 2 —
FC % becomes active only if an amount greater than 0 is entered in the Level 1 Amount Under field. The Level 2 FC % then applies to any balance that is greater than the Amount Under field.

Statement Cycles — This is an optional filter that lets you limit this finance charge assessment to customers with a specific Statement Cycle defined in their records. For example, if you enter Monthly in this field, only customers whose statement cycle is defined as Monthly will be assessed a finance charge. If the field is left blank, all cycles will be assessed.

Include Payment after Cut-off — Mark this checkbox if you do not want finance charges to calculate for accounts that have invoices generated before the cut-off date, but that have been paid after that date, even though they were still outstanding as of the cut-off

Exclude customers with finance charges already calculated after: — To avoid charging customers twice if finance charges have already been calculated, enter in the last date the charges were calculated in this field.

Process — Click this button to create a temporary file of customers to be assessed a finance charge. If any payments have been entered but not posted, an alert will notify you: "There are unposted payments for $xxxx.xx. Do you want to continue?" Select No if you want to post those payments before calculating finance charges; Yes to proceed with processing.


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