You can compute and apply finance charges to past-due customer invoices using the Finance Charges screen.
Important! To compute finance charges on customer invoices, you must previously have set up an annual finance charge and an account for crediting the charges on the Sales Preferences screen.
Finance charges are computed as rate / 365 days * past due days * past due amount, with past due dates counted from the invoice date.
To apply finance charges:
1. Select Invoice List from the Sales menu to open the Invoice List screen, and click the Finance Charges button to open the Finance Charges screen.
2. Select a customer from the drop-down list in the Customer field of the Select Criteria panel.
3. Specify the latest due date for the invoices (the date through which finance charges are to be computed) in the Due Date field, and click View.
Note: The Due Date cannot be earlier than the most recent invoice selected.
The invoices satisfying the selection criteria appear on the screen in table format, with columns identifying specific information about each invoice.
§ Invoice #: The unique identifying number of the invoice.
§ Customer Name: the name of the customer to whom the invoice was issued.
§ Amount: The original amount on the invoice.
§ Finance Charge: Any previously-applied finance charges for the invoice. If you re-compute the finance charge, this amount is replaced by the latest one computed.
§ Invoice Date: The date of the original invoice.
§ Due Date: The date the original invoice was due.
§ Number of Days: The number of days the invoice is past-due, based on the original due date and the Due Date specified in the Select Criteria panel.
4. Click the number in the Invoice # column to view the original invoice, or click the name in the Customer Name column to access customer information.
5. Click the checkbox in the Select to Apply column for the invoices for which to compute finance charges.
The newly-calculated finance charges appear in the last field in the row, under the Enter If Different heading.
6. Click Apply Finance Charge to apply the newly-calculated finance charges to the specified invoices.
The computed finance charges are added to each applicable customer invoice and printed with the Customer Statement.