When a customer does not pay by the due date, you can have finance charges calculated automatically and add them to the overdue amounts on the customer's account. You can inform customers of the added charges by sending finance charge memos.
 Note |
|---|
| You use finance charge memos to calculate interest and finance charges and to inform your customers about interest and finance charges without reminding them of overdue payments. Alternatively, you can calculate interest on overdue payments when you create reminders. |
You can manually create a finance charge memo for an individual customer, and fill in the lines automatically. Alternatively, you can use the Create Finance Charge Memos batch job to create finance charge memos for all or selected customers with overdue balances.
After you create the finance charge memos, you can modify them. The text that appears at the beginning and end of the finance charge memo is determined by the finance charge terms, and can be seen in the Description column on the lines. If a calculated amount has been inserted automatically in the beginning or ending text, the text will not be adjusted if you delete lines. Then you must use the Update Finance Charge Text function.
After you have created finance charge memos and made any needed modifications, you can either print test reports or issue the finance charge memos.
When you issue a finance charge memo, the data is transferred to a separate table for issued finance charge memos. At the same time, finance charge entries are posted, and entries are posted to the customer ledger and the general ledger.
You can print the finance charge memos when you issue them or print the issued finance charge memos later.
The following table describes a sequence of tasks, with links to the topics that describe them. These tasks are listed in the order in which they are generally performed.
| To | See |
|---|---|
Automatically create finance charge memos for customers with overdue amounts. | |
Create a finance charge memo manually and have the lines filled in automatically. | |
Learn about the batch job that automatically fills in the finance charge memo lines. | |
Update the beginning and ending text on finance charge memos that have been created but not yet issued. | |
Post entries for one or more finance charge memos and, if you choose, print the finance charge memos. |