Finance Charges may be assessed per account to produce late fees based on a customer’s unpaid invoices. Finance Charges will reside on a customer’s account as a separate transaction from the original invoice. Finance Charges have a balance and may have payments submitted towards them the same as with invoices. It should be noted that you cannot apply prepayments towards finance charges. Note that finance charges are applied manually at the user’s discretion, on a per-account basis.
Finance Charges work with Net Payment Due days. You will need to set both default to have Finance Charges calculated at the correct time.
Set Up:
Net Payment Due Within Setting
Finance Charge Monthly Interest Rate
Net Payment Due Within Setting
Gear Icon in the top right
Company
Defaults
Under Account
Net Payment Is Due Within
Set number of days an invoice can be unpaid before it is considered late
Only late invoices qualify for finance charges
Finance Charge Monthly Interest Rate
Gear Icon in the top right
Company
Defaults
Under Account
Finance Charge Monthly Interest Rate
Set percentage of the overdue balance to be assessed as finance charge
Set as whole number
Minimum Finance Charge
Gear Icon in the top right
Company
Defaults
Under Account
Minimum Finance Charge
Set the minimum value for finance charges in dollars (regardless of percentage)
Prevents any finance charge from being assessed for a smaller value than the amount specified here.