Upon completion of this lesson, you will be able to invoice finance charges.
Finance charges can be invoiced individually through the Invoice/Credit Memo screen. Or, by using the batch invoicing screen, you can invoice all non-retired users using a formula with parameters defined by you. Simply follow the step-by-step instructions below to do this.
1. To get to the Finance Charge page, select Billing Admin >> Batch Invoicing >> Finance Charges as seen in the menu below.
2. Next, you will need to specify the finance charge parameters below. Finance charges are calculated as follows. It takes the customer balance as of the date below (10/31/2011 in this example). Then, it subtracts payments and approved credits (e.g. fuel receipts) from the balance date (10/31) through the invoice date (12/15). This amount is multiplied by "% of unpaid balance" (10%). Then, the "Flat fee" is added ($5). And, finally this amount is compared to the "Minimum charge" ($0). The larger of the two amounts will be the calculated finance charge. The "Item" selected will be used for the description of the finance charge. And, it will determine the income account that is used for accounting purposes. If the finance charge item does not exist, you can create it through the Item Maintenance screen at Billing Admin >> Data Maint >> Items. When all parameters are set as desired, click on the "List Charges" button to see the proposed charges.
3. If the proposed charges in the "Fin. Charge" column are incorrect, make any necessary changes to the parameters. Then re-click "List charges." If you want to waive any of the finance charges for individual users, you can unselect them using the checkbox in the leftmost column. Once the proposed charges look OK, click "Add to statement." This will add a finance charge to each of the statements of users in the list.
4. Go to one of the user statements to verify that the finance charge was added.
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