Specifications

Chapter 4. Accounts Receivable
90 Dim11
Finance Charge Code How many days past due will finance charges be
calculated? This is the number of days past the due date.
Each range of days is assigned a code:
0 = no F/C
1 = 1-30
2 = 31-60
3 = 61-90
4 = 91 & over
Finance charge calculations are done during month end
processing.
DUE DATE # DAYS PAST
DUE
MONTH END
PROCESSING
DATE
FINANCE CHARGE
CALCULATED?
-------------------- ------------------- -------------------------- ---------------------------------
July 10 1-30 July 31 Yes
July 10 31-60 July 31 No
July 10 31-60 Aug 31 Yes
If a finance charge is calculated, it is added to the
customer's account as a separate transaction.
Monthly Finance How much do you charge monthly for a finance charge?
Charge % This is a percentage of the customer's overdue balance.
For example, 1.5% or 2%.
Do I allow a discount for prompt payment?
If yes, you will need to define the next 2 fields for the discount calculation. If no,
skip the next 2 fields.
Discount Date/Days When must the customer pay the invoice to receive a
prompt payment discount? This discount date will be
printed on the invoice and the statement for the
customer's information. You also have the option of
printing the discount amount as well. There are 2 ways
to use the discount date:
Ø Enter the actual date through which the discount is
available. If discounts are allowed through the 5th of
every month, enter mm05yy where mm=month and
yy=year. For example, if you are entering invoices in
July, the discount date will be August 5th. Enter
080501. During month end processing, this due date
is automatically changed to the next month (in this
case 090501).
Ø Enter the number of days after the invoice date
through which a prompt payment discount is allowed
(i.e., 10 which means 10 days from the invoice date).
For example if the invoice date is June 17, the
discount date is June 27.