Tabs3 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 examines the statement date for each of the client’s past due statements, and compares each to the current statement date. A corresponding finance charge amount is then assigned to each past due statement, 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.
The calculations behind finance charges are complicated. Thank goodness the software does these calculations behind the scenes!
Our Knowledge Base can be accessed 24 hours a day, 7 days a week, at support.Tabs3.com. You can also access our Knowledge Base while in the software by selecting Help | Internet Resources | Knowledge Base.