E-Automate has the option for you to charge your customers a finance charge on past due invoices, this creates a separate miscellaneous invoice finance charge on the customers account. These invoices can be sent to the customer or you may decide to only send out the monthly statement, that will identify the finance charge due.
1. Set up the default charges under, Tools / Options / Account Receivables / Finance charges:
Set the default GL accounts, annual % rate, the first starting cutoff date to begin charging finances, and any min / max charges you want to set up. Note these will be the defaults, however when running your batches you can override these.
There are two ways to calculate the finance charge:
a) Average daily balance for time period: based on the past due average daily balance, regardless of the balance on the invoice when you process finance charges. It looks at the time period for when you are processing your finance charges in that batch
b) Average daily balance for amount due on invoice at time of processing: looks at the amount due on the invoice at the time you are processing your charges, regardless of what the balance has been during the time period.
2. Ensure your customers have the box marked Assess finance charges in their customer record / Billing Tab
3. To run the monthly (or weekly, quarterly) calculation and generate the invoices, in eAutomate go to Accounts Receivable / Finance Charges, to process the batch.
The batch reports all the customers that qualify for charges based on your settings:
Start Date and Cut Off Date, is the time period to begin and end the calculation period
Option to change your default minimum / maximum charges (defaults set in Tools/Options as mentioned above), as well as the % rate to use for calculation. If you make any changes to the calculations, remember to hit 'refresh list' to see the changes and new calculations per customer.
You can update an individual customer in the list, highlight the customer, and in the bottom left corner make the change, charge or select 'forgive' to not charge the customer in this batch run.
Once done select OK, this will record the finance charges as a miscellaneous invoice against the customer account.
When you go to run this next month, eAutomate will automatically pull up the next start date (based on the last batch run cut off date).
Use our alert ID211 to monitor your customers with past due AR charges just for finance charges.