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Assessing Finance Charges
Overview
This document will show you how to configure finance charges within the software.
Topics included in this article
- Assessing Finance Charges
- Finance Charge Fields
How to get there:
Expert: Program Menu > Account Receivables > Print Statements > Assess Button > Generate
Elite: Accounting > Account Statements > Assess Button > Generate
Assessing Finance Charges
1. Select Print Statements. The statement box will open. In the upper right corner of the screen, you will see Finance Charges. This will show you the last time finance charges were assessed.
2. Click the Assess button to assess finance charges for past due contracts. The Assess Finance Charges menu will be displayed.
3. Once all the necessary field selections have been made select the Generate button to assess the charges.
Finance Charge Fields
Customers to report - “ALL” means assess finance charges for all customers that have had any activity or have a balance due. You can also select Individual or by Customer Type from the drop-down menu.
Individual - Select one customer to assess finance charges. Select the customer by key, number, driver's license number, or name.
Customer type - With this selection, you can choose which type you would like to process. Then only those customers with that type will be selected.
Customer name from - By default all customers will be processed from A to Z. If for some reason you only wanted to include customers from A to M, you would change the ending letter to M.
Payment type to charge - There are three different selections: Account, Cash, or Account & Cash. If Account is selected, only contracts that are on the account status will be considered. If Cash is selected, only contracts that are NOT on account will be considered. If Account and Cash are selected, all contracts regardless of the payment method will be considered.
Monthly percentage rate - This is the percentage rate charged for finance charges. All past due amounts will be multiplied by this percentage to compute new finance charge amounts.
Note: This default is set in Parameters. The annual rate is the monthly percentage multiplied by 12.
Days until Finance Charges incur - No finance charges will be computed on contracts that are aged under this number. Only contracts aged days over this number will be charged finance charges.
Note: This default is set in Parameters.
Charge Finance Charges on late Finance Charges - With this box checked, previous finance charge amounts will assess finance charges just like any other contract. Unchecked means that finance charges will be exempt from further finance charges.
Age contracts from OPEN date - With this checked the aged days of a contract are computed from the open date of the contract. Unchecked means that the aged days of a contract are computed from the closed date of the contract.
Charge all stores - This is for multi-store locations only. With this selection, you can choose which contracts will be considered for finance charges by store number. You can do this by selecting All Stores, or a particular location from the dropdown menu.
Print Finance Charge Invoices - With this checked each new finance charge will print an invoice to mail to the customer. Unchecked means that no invoice will print.
Printer Select - This option allows you to select the printer for the statements. The report printer will be the default. This option is only valid if “Print Finance Charge Invoices” is selected.
Number of Copies - This option sets the number of copies of each invoice that is printed. This option is only valid if “Print Finance Charge Invoices” is selected.
Generate - Click this button when you are ready to assess finance charges.
Note: Only assess finance charges once a month. If you assess more than once a month, the customer will be double-billed for finance charges.
Note: There is a field in the customer record labeled No Finance Charges under the pricing tab. The Assess Finance Charges program uses this field to determine whether to assess a finance charge for a customer. With this field checked, no finance charges will be assessed for the customer regardless of any other settings in the Assess Finance Charges menu.
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