Finance and Service Charges

Some states do not allow you to charge finance charges, but do allow you to charge service charges.

Use the following forms to set up and carry out your organization's finance/service charge process.

  • In the AR Company Parameters form, Finance Charges tab, set up default, company-wide settings. Regardless of whether you use service charges or finance charges, the system calculates each in the same way.

    The Interface Level for finance charges (in the AR Company Parameters form) determines whether finance/service charges can be assessed for a company.
    • Finance Charge is not used - finance/service charges are not in use for this company.
    • Calculate Finance Charge - finance/service charges can be assessed to customers. Determine which customers are subject to finance charges and complete the Finance Charges section of the AR Customers form accordingly.
  • Use the AR Customers form, Add'l Info tab to designate how finance charges are calculated for customers that are subject them.
    • Account – assessed on all outstanding invoice transactions, with a single invoice transaction generated for the calculated amount.
    • Invoice – assessed and applied to each applicable invoice.
      Note: These charges are not identified separately in Customer Accounts or Aged Analysis reports at the Invoice level of detail. However, customer statements always show the regular and finance/service charge balances, as well as the total for the whole invoice.
    • Receivable – assessed against all outstanding invoice transactions and grouped according to invoice receivable type.
  • Use the AR Finance Charge form to calculate and edit finance/service charges.