Detail method

The detail calculation method can only be used for open item customers.
Note:  If you have selected Interest Charge By Date for Company, then you must use the detail calculation method.

The detail method reduces individual past due open items beginning with the oldest open item by the total amount of open payments and credit memos. If an open amount remains, then the finance charge is calculated by multiplying the open amount by the number of days past due divided by thirty days. Then multiply that product by the finance rate that is specified for the finance code assigned to the customer.

The detail method also assesses late payment charges. The difference between the deposit date of the payment and the due date plus grace days that are specified for the customer is the number of days paid late. The late charge is calculated by multiplying the applied amount by the number of days paid late divided by thirty days. Then multiply that product by the finance rate that is specified for the finance code assigned to the customer.

If the customer selects Yes and has been charged for minimum charges in Customer, then these are the assessment of charges:

  • If the total assessment for a customer is less than the minimum charge amount that is specified for the customer, then the minimum charge is assessed.
  • If the total assessment for an invoice is less than the invoice minimum charge that is specified for the customer, the the invoice minimum charge is assessed.

If the customer selects No and has been charged for minimum charges in Customer, then these are the assessment of charges:

  • The total assessment for a customer is less than the minimum charge amount that is specified for the customer.
  • The invoice charge assessment is less then the invoice minimum charge amount that is specified by the customer.

If there is no minimum charges specified, then the finance charges are calculated according to the finance rate that is specified for the finance code.