Creating finance charge options

After you add your company and set up your finance charge codes, you can complete the finance charge options on the receivable company. Create finance charge options to assess finance charge fees and late payment fees for a company.
  1. Select Financials > Receivables > Setup > Receivable Companies.
  2. Click Create.
  3. On the Finance Charge tab, specify this information:
    Charge Type
    Select the type of finance charges that are assessed for the customers of this company.
    Grace Days
    Specify the number of grace days added to a transaction's due date before finance charges are assessed.
    Print Notice
    Select this check box if finance charge documents are printed.
    Cycle Code
    Select a cycle code to finance charges.
    Late Charge Rounding
    Select this check box if the resulting interest charge invoices are rounded to the nearest currency unit.
    Rate Code
    Select a rate code for new customers that are added for this company. The field contains a monthly percentage rate to calculate finance chargers for a customer.
    Disputes Financed
    Select this check box if to assess finance charges on disputed invoice amounts.
    Charge Customer Minimum
    Select this check box if a minimum finance charge is assessed.
    Interest Charge by Date
    Select the way in which finance charges are assessed. By interest rates, date, or fixed interest rate over date range.
    Administrative Fee
    Select this check box to assess an additional fixed administration fee. When a finance charge is assessed for the late payments, an additional fixed administrative fee can be charged.

    See Setting up interest charges on overdue debts.

    Calculation Method
    Select if the finance calculation method is Calculate Per Transaction or Net Balance Calculation.
    Customer Minimum
    If you select the Charge Customer Minimum check box, then specify the minimum finance charge amount to be assessed. If the calculated finance charge for the customer is less than the value that is specified, then the minimum charge is assessed.
    Last Number
    Specify the number of the last finance charge notice. If this field is blank, then the finance charge notices start with 1.
    Prefix
    Specify a prefix for finance charge invoices.
  4. Click Save.