Billing Q&A: Assessing a Finance Charge

November 2021    Tags: ,

We have our first client that needs to have a finance charge assessed. How do we configure this?

In order to apply a finance charge, you must first enable finance charges in Customization, and then configure the client.

To enable finance charge in Customization

  1. From the Quick Launch search for and 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. In the Rate 1 – Rate 5 fields, enter the desired annual percentage rate(s).
  3. Press Ctrl+S.

To configure a client to be assessed a finance charge

  1. From the Quick Launch, search for and select “Client Information.”
  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.

For more information, check out Knowledge Base Article R10850, “All About Tabs3 Finance Charges”.

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