KB Corner: All About Finance Charges

June 2022    Tags: Finance Charge, Resources, Statements, Tabs3 Billing

Tabs3 Billing allows you to optionally assess finance charges on your clients’ past due balances, but how does the calculation work?

When a statement is generated for a client whose past due balances are subject to finance charges, Tabs3 Billing examines the statement date for each of the client’s past due statements, and compares each to the current statement date. A finance charge is then calculated for each of the past due statements, and these amounts are added together to determine the total amount of finance charges to be billed on the current statement.

Knowledge Base Article R10850, “All About Finance Charges,” provides a flowchart that breaks down exactly how finance charges work along with examples, and includes frequently asked questions and a finance charge worksheet.

Our Knowledge Base can be accessed at support.Tabs3.com. You can also access our Knowledge Base in the Quick Launch by searching for and selecting “Knowledge Base.”