Managing Finance Charges

You can set up finance charge calculation methods and associate them with clients. With finance charges, you can choose the number of days from the invoice date before the finance charges begin, and the minimum accounts receivable balance before the client is eligible for finance charges. For percentage-based charges, you can select minimum and maximum charges, in addition to compounding and rounding options.

To add or modify a finance charge entry for a client, do the following:

1. Open Dashboard, click Application Links on the navigation panel, and then click Lists under Firm.
2. Click Practice Lists > Finance Charges on the navigation panel.
3. Select New or Edit from the button bar. For more options in the grid, see Using the Finance Charges Grid.
4. Enter information in the various fields for Percentage Type Charge or Flat Type Charge.

Explain the components of the Percentage Type Finance Charge window.

Component	Description
Finance Charge	Enter a unique name for the finance charge.
Days from invoice date	Set the number of days from the date of the invoice before finance charges will be calculated and added to that invoice.
Minimum balance	Enter the minimum balance on the client’s account before they are eligible for finance charges.
Type	Select the type of charge, whether it is percentage based or a flat amount.
Rate	Enter the percentage rate in whole numbers that will be used to calculate the finance charge. For example, enter 5.9% as 5.9.
Minimum amount	Specify the minimum finance charge in a dollar amount.
Maximum amount	Set a maximum finance charge in a dollar amount. If this field is left blank, then there is no maximum amount for the finance charge.
Round to dollars	Indicate if the charge can be rounded, and if so, whether it should be rounded up or down.
Compound charges	Specify if finance charges will be compounded. Your state may have laws allowing or denying the ability to compound charges.

Explain the components of the Flat Type Finance Charge window.

Component	Description
Finance Charge	Enter a unique name for the finance charge.
Days from invoice date	Set the number of days from the date of the invoice before finance charges will be calculated and added to that invoice.
Minimum balance	Enter the minimum balance on the client’s account before they are eligible for finance charges.
Type	Indicate the type of charge, whether it is percentage based or a flat amount.
Amount	Enter the amount of the flat charge.

5. Click one of the Save buttons or Cancel.

Button	Description
Save & New	Saves the changes and opens a new window to create a new entry.
Save & Close	Saves the changes and exits the window.
Cancel	Exits the window without saving your changes.