Calculate Finance Charges

Use the Calculate Finance Charges function to calculate finance charges on overdue invoices, to produce a report of finance charges, and to update customer records with the new finance charges. If your company does not assess finance charges, you do not need to use this function.

When you run this function, the system calculates finance charges for only those customers you indicated on the Default tab of the Customers screen. The calculation is based on the minimum charge and the percentage.

Before you use the Calculate Finance Charges function, you must enter the finance charge date, finance charge percent, finance charge minimum, and finance charge days in the AR Business Rules function, and select the Finance Charge check box on the Defaults tab of the Customers screen.

Finance charges cannot be recalculated after you run the Periodic Maintenance function, because periodic maintenance moves the figure in the New Finance Charge field to the Unpaid Finance Charge field in the customer record. It also posts the finance charges to GL and creates open invoices for the finance charges.

Note: To adjust finance charges, change the finance charge amount in the New Finance Charge field on the Balance tab of the Customers screen.

Use the Data Filter to select the range of filtering options or leave the filter blank to include all available data.
Select the statement date from the Statement Date field. This is the date upon which the calculation will base the finance charge calculation on.
For example, if you calculate finance charge after 30 days, then all invoices which were due 30 days prior and earlier will be assessed a finance charge. That date is displayed for you.
The date used to calculate the overdue invoices will be taken from the Finance Charge Date business rule. The dates to select from are the Invoice Date or the Due Date calculated from the terms code for the invoice.
Click a command button to

Click	To
OK	Calculate the finance charges.
Activity	View the Activity Log for calculating finance charges.
Reset	Set all fields to their default values.