Exclude Finance/Service Charges When Applying Payments

If you have assessed finance/services charges to a customer, but don't want to apply any of their payment to the charges, you can exclude them when initializing payments.

  1. Open the AR Cash Receipts form.
  2. Complete the payment header as usual.
    The AR Initialize Receipt form appears, allowing you to specify how the payment will be applied.
  3. Select the Exclude Finance Charges check box.
  4. Process as usual.
The 'applied' amount is the total amount of the invoice less the finance charge amount. Finance charges excluded from payment can either be paid at a later date or written off using AR Automatic Write-Off.