Billing Q&A: Assessing Finance Charges

December 2023    Tags: Clients, Tabs3 Billing

We will start assessing clients a finance charge on unpaid work at the end of the year. How can we configure this?

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

To enable finance charge in Customization

1. In 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 clients to be assessed a finance charge

1. In the Quick Launch, search for and select “Change Client Options.”
2. On the Client tab, enter the range of clients that you want to assess a finance charge. Alternatively, click the Multiple button to enter multiple Client IDs or multiple client ranges.
3. On the Billing tab, click the Select button, select Assess Finance Charge, Finance Charge Rate, Finance Charge Days, and Apply Payment to Finance Charge, and click OK.
4. Select the Assess Finance Charge check box.
5. Select the appropriate Finance Charge Rate, Finance Charge Days, and Apply Payment to Finance Charge options.
6. Click OK.

Note: Alternatively, you can configure clients individually on the Billing Options tab of Client Information.

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