Assessing Finance Charges In QuickBooks

Published on 3 December 2020 at 09:00

How to Assess Finance Charges in QuickBooks

You are able to tell QuickBooks to evaluate finance charges on overdue customer invoices. To do this, you first put up the finance charge calculation rules. When you’ve done this, you can easily assess finance charges on overdue amounts by seeking the QuickBooks command.

Setting up finance charge rules
To create the finance charge rules, select the Edit →   Preferences command. When QuickBooks displays the Preferences dialog box, click the Finance Charge icon and then click on the Company Preferences tab. The Preferences dialog box at this point should look like this.

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To share with QuickBooks how it should calculate the finance charges, go into the annual interest rate that you’ll use for calculating charges into the Annual Interest Rate (%) box. Enter the minimum finance charge amount that you assess within the Minimum Finance Charge box. Should you want to create a grace period, enter the wide range of grace-period days within the Grace Period (Days) box.

Use the Finance Charge Account drop-down list to specify the QuickBooks income account to which finance charge revenue must certanly be credited. Select the Assess Finance Charges on Overdue Finance Charges check box if you'd like to charge finance charges on finance charges. Finally, utilize the Calculate Charges From radio buttons — Due Date and Invoice/Billed Date — to specify the date from which finance charges must certanly be calculated. When you’ve provided these details, it is possible to click OK to truly save your finance charge calculation rules.

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Calculating finance charges
After you put up the finance charge rules, you can easily assess finance charges on overdue invoices. To work on this, choose Customers  →   Assess Finance Charges. QuickBooks displays the Assess Finance Charges dialog box. This dialog box lists all the overdue invoices that customers owe both you and, predicated on your finance charge calculation rules, calculates a finance charge.

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To evaluate the finance charge to a specific customer, click on the Assess field for the customer. (By default, QuickBooks assumes that you would like to assess finance charges whenever a customer’s account is past due.) In the event that you don’t like to assess finance charges to a particular customer, eliminate the check mark from the Assess field by clicking it. When you’ve identified which customers should be assessed finance charges, click on the Assess Charges button. QuickBooks essentially creates a fresh invoice for every of those customers. These new invoices charge the clients a finance fee.

In case, some of the above steps are unclear, and you are unsure the direction to go about this, it is highly better to speak to a technical expert at QuickBooks customer care Number.

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