Net method

The net calculation method can be used by open item customers and is the only method available for balance forward customers. Late payment charges are not applicable. The net method reduces the total amount past due by the total amount of open payments and credit memos. If a past due amount remains, then the finance charge is calculated by multiplying the past due amount by the finance rate that is assigned in Customer.

If the customer selects Yes and has been charged for minimum charges in Customer, has defined minimum charges, and the total assessment for a customer is less than the minimum charge amount, then the minimum charge is assessed.

If the customer selects No and has been charged for minimum charges in Customer and no minimum charge amount is specified, then the finance charges according to the finance rate are calculated by the system.