Assessing Charges

You can assess finance charges, late payment charges, or both for customers with finance charge options defined in Customer (AR10.1). If finance charge options are not defined for a company, see the section on initiating charges. Initiating Charges

Application closing must be run prior to calculating finance and late payment charges in order to flag late payments. Closing the Day

To assess finance and late payment charges

  1. Access Finance Charge Late Payment (AR137).
  2. Select the company and run the program to assess charges. The program calculates the charges depending on the calculation method selected for each customer in Customer (AR10.1). Use the following guidelines to enter field values:
    As of Date

    Type a date to run the report using the status of open items as of a specific date. Used to determine whether an item is past due and the number of days past due. If left blank, the current period end date defaults. This date will be used as the general ledger date for finance charges.

    Qualify Future Applications

    If you have future dated applications, and the as of date is not today's date, select Yes.

    If you do not have future dated applications and the as of date is today's date, select No. (This dramatically reduces processing time.)

    Note: If you assess finance charges using the Late Payment method, this field must be Yes.
    Update Option

    Select R - Report Only or U - Update and Report. If you select U, the program updates customer balances with the total assessment, creates two summary distributions to debit accounts receivable and credit the finance charge account, creates an open item with an FC- prefix for the total assessment, and creates a notice work record for printing notices.

    Default Process Level

    If you selected Update and Report in the Report Option field, type a process level. If the program calculates a finance charge on a customer's transactions which span multiple process levels, the value on this parameter will be used as the process level for FC- debit memo created on the customer account.

    Note: The Process Level and Finance GL Code fields are not selection parameters. These two fields determine how general ledger entries for the finance charge debit memos are posted.
    Or Select Process Level

    If you select a value in this field, you must leave the Default Process Level field blank. Only debit memos and invoices that match the selected process level will be included in the report.

    Payment/Credit Option

    Payment/Credit Option lets you decide how payments and credits will be handled. This field is used in conjunction with the Select Process Level field.

    Finance GL Code

    If you typed a value in the Process Level field, type the finance general ledger code to be used for the credit entry to GL for those FC- debit memos that are generated for transactions which span multiple process levels. If left blank, the Finance GL Code assigned to the Process Level on the parameters is defaulted.

    Note: The Process Level and Finance GL Code fields are not selection parameters. These two fields determine how general ledger entries for the finance charge debit memos are posted.
    Cycle Codes

    Select one or more finance charge cycle codes to select customers for finance charge processing.

    Journal Book Number

    Type the journal book number assigned to the transaction.

    Payment Notice Text Code

    Select a payment notice text code defined on AR19.4. The late payment text associated with the text code will be printed on the late payment notice in the customer's preferred language.

    Include Finance Debit Memos

    Select whether or not to include finance charge debit memos.

    Due Date

    Due Date can not be less than the current date. If Due Date is left blank, process uses As Of Date.

  3. After running the program, run Application Closing (AR190) to process chargebacks and update balances. Then run Distribution Closing (AR195) to transfer the finance charges and late payments to the general ledger. Closing the Day
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