Finance charges

When you define a finance charge code, you must select a monthly or daily finance rate. This rate is used to calculate the finance charges, late payment fees, or both depending on how you define your customer's finance options. Finance charge codes are global. They can be used by all companies and customers. These are the types of finance charges:

Type	Description
Finance charges	Fees that are assessed to your customers when they have past due invoices.
Daily finance charges	Fees that are assessed to your customers for past due invoices. They are calculated using a daily rate on a daily basis. This method is used in European countries.
Late payment fees	Additional finance fees that are assessed to your customers on invoices that are paid after the due date. The invoices are no longer open on the customer's account.