Accounts Receivable - Generate Finance Charges
FunctionThe Generate Finance Charge task automatically creates finance charge invoices for customers based on days overdue, invoice amount, finance charge rate and minimum finance charge amount. This is the first step of applying finance charges to customer accounts, followed by the printing of the Finance Charge Register and the update. Finance charges for individual customers may also be entered or modified using the Finance Charge Entry task.
=> To access this task.. Select Generate Finance Charges from the Period End Processing menu.
Generate Finance Charges
About the Fields
In the Batch No: field... Display only.
In the Finance Charge Date field... This date is the accounting date of the finance charge. The due date and days overdue are calculated using this date as a base and the assigned terms code
In the Days Overdue field... The days overdue are calculated from the finance charge date entered in the Date field. Open invoices dated on or before this date are considered for finance charges.
ExampleWhen the finance charge date is 12/30/04 and the days overdue is 60, only open invoices with due dates on or before 10/31/04 are considered for finance charge calculation.
In the Minimum Past Due Amount field...
ExampleEnter 10.00 to consider invoices which are $10.00 or greater for finance charges.
In the Finance Charge Percentage field...
ExampleEnter 1.25 to calculate finance charges of 1.25% (.0125). When an overdue invoice is $150 and the finance charge percent is 1.25, the amount of the finance charge is $1.88.
In the Minimum Finance Charge Amount field... When a calculated finance charge is smaller than this amount, it is replaced with the minimum finance charge amount. In other words, whenever a finance charge is applied, it is this amount or greater.
ExampleEnter a Minimum Finance Charge Amount of $1.00 to apply at least a $1.00 finance charge to all eligible invoices.
In the Distribution Code field... This code will determine the general ledger postings for the accounts receivable and finance charge revenue accounts, when selected as part of the update process.
In the Terms Code field... This code will determine the due date of the finance charge based on the finance charge date.
Exclude Inactive Customers? checkbox...
Clear non-updated finance chrg checkbox...
When done making selections...
Attempting to leave an unsaved Generate Finance Charges by clicking the New button, the module issues this confirmation:
ProcessingThe task will search through all open accounts receivable invoices. The invoice number being examined is displayed on the screen. When the invoice is overdue, the balance is checked for minimum size. If the balance is large enough, the finance charge amount is calculated. When the finance charge amount is large enough, a finance charge record is created.
NOTE: Finance charges generated through this process may be modified or deleted using the Finance Charge Entry task prior to updating the Finance Charge Register. ______________________________________________________________________________________ Copyright BASIS International Ltd. AddonSoftware® and Barista® Application Framework are registered trademarks. |