Accounts Receivable                     Finance Charges                               How to Generate Finance Charges

How to Generate Finance Charges

Follow the instructions below to generate a list of customers who qualify for a finance charge invoice.

1.  Navigate to the Main Application Menu and select Accounts Receivable / Finance Charge.

2.  Setup Finance Charge Rules – The Finance Charge form will be displayed with the Finance Charge Information form (tab).  The information that defaults into this form originates from SedonaSetup Finance Charges Setup; the User may override the values defaulted into this form.

Aging

In this section you will set the number of days past due an invoice must be for a finance charge to be assessed.  The User will specify the As Of Date; the invoice must be past due by the minimum days past due entered on this date to be considered for a finance charge.

Invoices

In this section the User has the option of selecting all invoices or only invoices dated as of a particular date to be considered during the finance charge generation.  If selecting All Invoices, only the invoices that meet the rules set in the Aging area will be considered for finance charges.

Re-Charge Finance Charges Option – if this checkbox is selected, prior finance charge invoices that have not been paid will be considered and may have a finance charge assessed against them if they meet the rules in the Aging area.

Amounts

Minimum Invoice Balance – Specify the minimum balance on an invoice that will be considered for finances charges.

Annual Interest Rate – Specify the interest rate that will be used to calculate the finance charges.

Minimum Charge (Optional) – If an amount is entered in this field, this would be the minimum amount a finance charge invoice will generated.  Any calculations greater than the minimum charge entered will generate for the exact calculation.

For example, the finance charge calculation using the Annual Interest Rate is $1.21 for a particular invoice; if a minimum charge of $5.00 was entered, the customer will receive a finance charge invoice for $5.00.

Once all information has been entered on the Finance Charge Information form, press the Get Totals button located at the lower right of the form.

FRM 4031-1

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