Billing Q&A: Apply Finance Charge

February 2019    Tags: , ,

I want to start assessing a Finance Charge on a client. How do I set this up?

Before you can apply a finance charge to a client, you must first enable finance charge in Customization. Once enabled, you can configure the finance charge for the client.

To enable finance charge for Tabs3

  1. From the Utilities menu, select Customization.
  2. On the Rates tab, in the Finance Charge section:
    1. Select the Assess Finance Charge check box.
    2. Select the Subject to Finance Charge check box if you will also be charging a finance charge on any unpaid finance charge (compounding).
    3. Enter the desired annual percentage rate(s) in the Rate 1 – Rate 5 fields.
  3. Press Ctrl+S.

To configure a client to be assessed a finance charge

  1. From the File menu, point to Open and select Client.
  2. Enter the desired Client ID.
  3. On the Billing Options tab, in the Finance Charge section:
    1. Select the Assess Finance Charge check box.
    2. Select the desired Rate.
    3. Optionally enter a number in the Days (0-999) field. This number causes a finance charge to be assessed on the portion of the client’s outstanding past due balance that exceeds the specified number of days past due (i.e., a grace period).
    4. Select the desired Apply Payment to Finance Charge option. This option determines whether payments will apply to the finance charge before fees and costs on the statement, or after.
  4. Press Ctrl + S.

Information on how the finance charge is calculated can be found in Knowledge Base Article R10850, “All About Tabs3 Finance Charges.”

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