Simple tips to Assess Finance Charges with QuickBooks
QuickBooks 2015 assesses finance charges on unpaid open invoices without considering any unapplied payments. Accordingly, you’ll want to ensure that you apply any payments and credit memos to open invoices before assessing finance charges.
Choose Edit→Preferences, click the Finance Charge icon within the list from the left, and then click on the Company Preferences tab.
In order to assess finance charges, you first need to create them up.
Only the QuickBooks administrator can transform the company finance charge settings, and he or she will achieve this only in single-user mode.
QuickBooks displays the Preferences dialog box. (If you’ve assessed finance charges before, QuickBooks displays the Assess Finance Charges window. You are able to display the Preferences dialog box and check or edit your finance charge settings by clicking the Settings button into the Assess Finance Charges window.)
Enter the annual interest rate that you want to make use of to calculate finance charges.
If You want to know learn about Assessing Finance Charges In QuickBooks then call our Proadvisors.
Move the cursor towards the Annual Interest Rate (%) text box and go into the annual rate of interest.
(Optional) go into the minimum finance charge, if an individual exists.
Move the cursor to the Minimum Finance Charge text box and enter the minimum charge. In the event that you always charge at the least $25.00 on a past-due invoice, for example, type 25.
Enter the number of days of grace that you give.
Times of Grace. That sounds kind of like an artsy movie or serious novel, does not it? Basically, this number is just how many times of slack you’re prepared to cut people. In the event that you type 30 into the Grace Period (Days) text box, QuickBooks does not start assessing finance charges until thirty days following the invoice is past due.
Specify which account you need to use to trace the finance charges.
Activate the Finance Charge Account drop-down list and choose an Income or Other Income type account.
Indicate whether you want to charge finance charges on finance charges.
Does this statement add up? If you charge somebody a finance charge, in which he or she doesn’t pay the finance charge, eventually it becomes past due, too. So then, do you realy calculate a finance charge from the finance charge? Should you want to do this — and when state and local laws let you — choose the Assess Finance Charges on Overdue Finance Charges check box.
Tell QuickBooks whether or not it should calculate finance charges from the due date or even the invoice date.
Select either the Due Date or Invoice/Billed Date option button. As you might guess, you calculate bigger finance charges if you start accruing interest from the invoice date.
Tell QuickBooks whether or not it should print finance charge invoices.
Select the check box for Mark Finance Charge Invoices “To Be Printed” if you wish to print invoices later for the finance charges which you calculate.
Once you use the Preferences dialog box to share with QuickBooks how the finance charges must be calculated, click OK.
Choose Customers→Assess Finance Charges.
Alternatively, click the Finance Charges icon regarding the Home screen. The Assess Finance Charges window appears. This window shows all the finance charges that QuickBooks has calculated, organized by customer.
Supply the finance charge assessment date.
Move the cursor to your Assessment Date text box and enter the date when you’re assessing the finance charges. (This date can be the invoice date that will be used on the finance charge invoices, if you create them.)
Confirm which customers you want to be assessed finance charges.
QuickBooks initially marks all of the finance charges, which means that it sets up a new invoice for every finance charge. (QuickBooks marks finance charges with some check mark.) If you wish to unmark (or, later, mark) a finance charge, click it. To unmark most of the charges, click the Unmark All button. To mark all of the charges, click on the Mark All button.
You are able to produce a collections report for any regarding the customers or jobs placed in the Assess Finance Charges window by selecting the client name after which clicking the Collection History button.
Click on the Assess Charges button.
If the Assess Finance Charges window correctly describes the finance charges that you would like to evaluate, click Assess Charges. You’re finished with all the finance charge calculations and assessments.
In case, some of the above steps are unclear, and you're unsure how to proceed about this, it really is highly better to talk to a technical expert at QuickBooks Support Number.