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Assessing Finance Charges In QuickBooks

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How exactly to Assess Finance Charges in QuickBooks

You can easily tell QuickBooks to assess finance charges on overdue customer invoices. To get this done, you first put up the finance charge calculation rules. When you’ve done this, it is possible to assess finance charges on overdue amounts by selecting the QuickBooks command.

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

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

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Make use of the Finance Charge Account drop-down list to specify the QuickBooks income account to which finance charge revenue must 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, use the Calculate Charges From radio buttons — Due Date and Invoice/Billed Date — to specify the date from which finance charges should be calculated. After you’ve provided this information, you can click OK to truly save your finance charge calculation rules.

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

To assess the finance charge to a certain customer, click on the Assess field for the customer. (By default, QuickBooks assumes that you want to assess finance charges whenever a customer’s account is past due.) If 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 ought to be assessed finance charges, click the Assess Charges button. QuickBooks essentially creates an innovative new invoice for every single of the customers. These new invoices charge the customers a finance fee.

In the event, any of the above steps are unclear, and you're unsure how to proceed about any of it, it is highly better to keep in touch with a technical expert at QuickBooks customer care Number