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Calculate Invoices and Finance Charges

Accounts Receivable Checklists

Accounts Receivable FAQs

Calculate Invoices/Finance Charges - Finance Charges Tab

Access this form using Activities>Accounts Receivable>Calculate Invoices/Finance Charges.

Use the Finance Charges tab to enter the information necessary to calculate finance charges. This tab is only available if you selected "Finance Charges Only" on the Calculation Information tab and depending on what was selected on the Calculation Information tab, determines how to accumulate the charges by Billing Groups or Customers.

If Customers is selected, the calculation gathers charge codes only by customer. If the Customer is included in a Billing Group, the Default Charges are included in the calculation. This option allows you to set up a One Time/Recurring Charge without including the customer in a Billing Group. However, if the Customer is in a Billing Group, those charges are included on the invoice.

The Distribution Code field only displays codes that either share the same currency as the calculation or have a currency of ANY. The GL Account field only displays CSH type codes whose currency matches the Calculation ID currency or the organization's functional currency.

 

Finance Charge Information

  • Type: Select the calculation method to use for the finance charge.
    • Fixed Amount (FA) - to calculate based on the Value, Minimum Balance, and Due Date
    • Percent of Past Due Invoices (PD) - to calculate using the Percentage, Due Date, and Minimum Balance
  • Due Date: Enter the due date to use to calculate the finance charge.
  • Value: Enter the finance charge invoice amount. This value is used for the Fixed Amount calculation.
  • Percentage: Enter the applicable percentage to calculate the finance charge. This percent is used for the Percent of Past Due Invoices calculation.
  • Minimum Balance: Enter the minimum balance to use to calculate the finance charge. The system only calculates and applies finance charges to amounts greater than the minimum.
  • Description: You must enter a description which is printed on all Finance Charge lines on the Activities>Accounts Receivable>Customer Statement. This description also serves as the Comments on the Review/Modify Invoices form.

Segment Coding

  • Select Distribution Code, Use Customer Distribution Code: Select the first option to use the distribution code entered on this form, or the second option to use the code from the Maintain>Accounts Receivable>Customers form. Since a code is not required on the Customers form, if you select the second option and one does not exist, you must select a code here.
  • Distribution Code: Enter or select the Distribution Code to use for the calculated finance charge.
  • GL Account: Select the general ledger account to use for the calculated finance charge.
  • Since these charges do not print on the Print/Email Calculated Invoices form, the system generates the invoice number beginning with FC1001 and auto-increments for each invoice created for the finance charges. However, this information does print in the body of the Activities>Accounts Receivable>Customer Statements as an invoice line with the invoice number generated here.
  • Set up a customer with finance charges by selecting Apply Finance Charges on the Maintain>Accounts Receivable>Customers>Billing and Terms tab.
  • If the selected customers have more than one distribution code, choose the Select Distribution Code option.
  • The functional currency was determined by the Administrator when the organization was created (File>New Organization>Functional Currency panel).