Finance Charges

Purpose

You have the option of charging your customers finance charges for past due invoices. You can assess these finance charges at any time, however we recommend it as a part of Month End Closing procedures.

 

Usage

1. Enter the Date

You should first put in the proper date in the Finance Charge Date field. This is the date on which charging will begin, for the current month. Input the date either by typing it directly into the field or by using the date lookup.

After you have put in the date, Integral Accounting will run through all the customers in its databases and see which ones have invoices that are past due. It will arrange these into columns, depending on how long overdue they are. The standard buckets are 0 to 30 days, 31 to 60 days, 61 to 90 days, and over 91 days late. These dates can be changed in the Sales preferences.

If after you select a date you still see no customers listed, yet you suspect that you have customers who have invoices past due, check to make sure that you have turned on Finance Charges for those customers.

2. Edit the Finance Charges

The grid lists all customers who should be charged finance charges, together with the recommended charge and the amounts due in each period.

Customer - This is the customer who is being charged.

Finance Charge - Integral Accounting will put a recommended finance charge in this field. You are free to edit this value.

Periods - The next four columns divide the customers' due amounts into aging periods. These periods are defined in Sales Preferences. The amounts are printed here so you can get an idea of how delinquent the customers' payments are.

Total Finance Charges - This field, at the bottom of the form, is calculated by summing the Finance Charge column. It tells the total finance charges you will bill customers for this month.

3. Post

Click the Post button at the top of the form to add these charges to your customers' accounts.