Finance Charges

How do I add finance charges on overdue accounts?

Goldenseal accounting software gives you several ways to add finance charges on overdue accounts.

Payment Term Setup

To include finance charges in customer payment terms, follow these steps:

1. Choose Payment Terms from the Options menu, and choose Customers or Projects from the submenu.
2. To make a new set of terms, click the New button. To change an existing set of terms, select it and click the Edit button.
3. Enter the charge amount into the Late Charge field. You can also set the type of charge and any minimum amount.
4. Click OK.

To use the payment terms, follow these steps:

1. Choose Customers from the Accounts menu.
2. Click in the Payment Terms field for each customer, and enter the Customer Payment Terms you'll use for them.
3. You can do the same thing for Project accounts, using Project Payment Terms.

When you enter sales transactions or project billing records, Goldenseal automatically uses the usual terms for that account.

Billing Charges

When you use the Billing command, Goldenseal automatically computes any late charges on overdue accounts, based on the payment terms .

To view the finance charge, double-click on a customer or project. Charges and discounts are included in the Adjustments column.

Subsequent Charges

To add an additional finance charge, follow these steps:

1. Choose Billing Records from the Bank menu.
2. Click the New button.
3. Enter Customer or Project into the Account Type field.
4. Enter an account into the Account field.
5. Enter Finance Charge into the Billed Item field
6. Enter the amount of the charge into the Gross Price field.

Click here to return to sales topics.

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