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OC Charge memo in OC Financial Leasing App

Finance Charge Memo is a possibility how to charge interest for overdue invoices to relevant customers.


Steps to use Finance Charge Memo:

  • Create Finance charge term via function Finance Charge Terms

    • standard function, some documentation can be found on MS Learn Set Up Finance Charge Terms - Business Central | Microsoft Learn (without guarantee)

    • Finance Charge Term specify how Finance Charge Memos would be calculated

    • Creation of Finance Charge term:

      • Code

        • Short code - name of charge term

      • Description

      • Interest Calculation

        • Open Entries

        • Closed Entries

        • All Entries

      • Interest Calculation Model

        • Average Daily Balance

        • Balance Due

      • Interest Rate

        • Fill the rate and period for this rate – e.g. 1,5 % monthly

      • Interest Period (days)

        • Fill the rate and period for this rate – e.g. 1,5 % monthly

      • Minimum Amount

        • From which amount you want to Issue Charges Memo

        • If there is 0 the system calculates charges from all due items without amount condition

        • If 10 the total of calculated charges must not be less than 10

      • Additional Fee

        • To add to the Finance charges also some additional fees e.g. some Issue Fees

        • Appears in the last line of prepared Charges memo

        • fill the G/L account for posting these fees

      • Grace Period

      • Due Date Calculation

      • Line Description

        • You can also use the placeholders that are shown in MS learn to automatically insert related values in the resulting finance charge memo text.

      • Post Interest

      • Post Additional Fee

      • Add. Line Fee in Interest

  • Assigned this term to all relevant customers

    • Customer Card/tab Payments/Fin. Charge Terms Code

  • Create Finance Charge Memo MANUALY for single Customer via Customer Card/Actions/New Document/Finance Charge Memo:

    • Finance Charge Memo has header and lines as e.g. invoice:

      • Select Posting and Document Date

        • To which date are charges calculated

      • Check the Finance Charge Term

        • Make sure there is assigned Fin. Charge Term Code

        • Can be changed if needed

      • Check the Due Date for issued Charges Memo

      • Calculate charges by batch Suggest Fin. Charge Memo Lines

        • Finance Charge Card/Actions/Function/Suggest Fin. Charge Memo Lines

      • The system offers items and calculate the charges according to the selected parameters and Finance Charge Term

      • Offered items could be edited or deleted from the Finance Charge Memo Lines.

      • Created Finance Charge Memo could be issued

        • Actions/Issuing/Issue

      image-20250407-082641.png
  • Create Finance Charge Memo AUTOMATICALLY

    • Use function Finance Charged Memo

      • Under Home is function Create Finance Charge Memo

      • It is typically used to generating finance charge memos for all customers

        image-20250407-083604.png

You can also use reminders and charge the interest in reminders.


Follow up:

How to set up posting

How to create reminder in general

How to create reminder in detail