Issue/Symptom/Question

How do I calculate finance charges for customers?

Applies To

Billing & Accounts Receivable > Setup > Finance Charge Rules 

Billing & Accounts Receivable > Customers > Customers 

FInance & Accounting > Setup > Organization Units > Organization Units 

FInance & Accounting > Processing > Calculate Finance Charges 

Billing & Accounts Receivable > Manage A/R Status> Manage Customer Receivables

Resolution/Fix/Answer

To calculate Finance Charge Rules, you will first need to create a Finance Charge Rule in the Finance Charge Rules screen. Enter a Finance Charge % that will be used to calculate the Finance Charge. Enter a Calculate Finance Charge When Invoice > Days Old. This will determine when the rule should be used to calculate the finance charge. If the invoice is older than the days entered when the Finance charge process is run, then the charge will be created.

After a Finance Charge Rule has been created the rule must be added to a Customer. On the BS OU select how you want the credit OU to be determined.

To add the rule to a customer, query the customer you want the rule to be used on. Navigate to the Operational tab and in the Finance Charge Rule # field, add the Finance Charge Rule.

To select how the Credit OU is determined, query back the OU you want the rule to be used on. Select the Misc. button. In the pop up Enter Either B, C, or S in the Credit OU for A/R Finance Charges field. This field is only enabled if the OU is a Balance Sheet OU. Values for Credit OU for A/R Finance Charges field

• B: Use the balance sheet OU

• C: Use the Job, Work Order, or Maintenance Contract OU.

• S: Specify a Credit OU.

If S was selected you must enter a Credit OU. Credit OU must be an OU that have the current OU as the Balance Sheet OU. 

After you have setup a Finance Charge Rule on the Customer and have Accounts setup on the Finance Charge Rule, you can now run the Calculate Finance Charge process. Open the Calculate Finance Charges screen and enter the Balance Sheet OU ID you wish to calculate Finance Charges for and the Period End Date you wish to be used when calculating these charges.

To view the Invoice that was created for Finance Charges, open the Manage Customer Receivables screen and query the Customer you created a finance charge for. You will see a new Invoice # titled "(the period end date you entered on the Calculate Finance Charge screen)LATECHG" for all finance charges calculated with that period end date.