Finance Charge Memo is a possibility how to charge interest for overdue invoices to relevant customers.
Steps to use Finance Charge Memo:
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Create Finance charge term via function Finance Charge Terms
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standard function, some documentation can be found on MS Learn Set Up Finance Charge Terms - Business Central | Microsoft Learn (without guarantee)
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Finance Charge Term specify how Finance Charge Memos would be calculated
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Creation of Finance Charge term:
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Code
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Short code - name of charge term
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Description
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Interest Calculation
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Open Entries
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Closed Entries
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All Entries
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Interest Calculation Model
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Average Daily Balance
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Balance Due
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Interest Rate
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Fill the rate and period for this rate – e.g. 1,5 % monthly
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Interest Period (days)
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Fill the rate and period for this rate – e.g. 1,5 % monthly
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Minimum Amount
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From which amount you want to Issue Charges Memo
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If there is 0 the system calculates charges from all due items without amount condition
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If 10 the total of calculated charges must not be less than 10
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Additional Fee
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To add to the Finance charges also some additional fees e.g. some Issue Fees
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Appears in the last line of prepared Charges memo
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fill the G/L account for posting these fees
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Grace Period
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Due Date Calculation
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Line Description
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You can also use the placeholders that are shown in MS learn to automatically insert related values in the resulting finance charge memo text.
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Post Interest
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Post Additional Fee
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Add. Line Fee in Interest
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Assigned this term to all relevant customers
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Customer Card/tab Payments/Fin. Charge Terms Code
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Create Finance Charge Memo MANUALY for single Customer via Customer Card/Actions/New Document/Finance Charge Memo:
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Finance Charge Memo has header and lines as e.g. invoice:
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Select Posting and Document Date
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To which date are charges calculated
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Check the Finance Charge Term
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Make sure there is assigned Fin. Charge Term Code
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Can be changed if needed
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Check the Due Date for issued Charges Memo
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Calculate charges by batch Suggest Fin. Charge Memo Lines
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Finance Charge Card/Actions/Function/Suggest Fin. Charge Memo Lines
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The system offers items and calculate the charges according to the selected parameters and Finance Charge Term
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Offered items could be edited or deleted from the Finance Charge Memo Lines.
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Created Finance Charge Memo could be issued
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Actions/Issuing/Issue
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Create Finance Charge Memo AUTOMATICALLY
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Use function Finance Charged Memo
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Under Home is function Create Finance Charge Memo
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It is typically used to generating finance charge memos for all customers
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You can also use reminders and charge the interest in reminders.
Follow up: