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Assess and assign classes to Finance Charges/Past Due Invoices

Some businesses will wish to assess a flat late charge for overdue invoices rather than a Finance Charge percentage.

You may also want to assign either a source class or target classes to a Finance Charge invoice before it is created and saved.

The Finance Charge preferences can be altered to assess late charges for past due invoices.

NOTE: If this change is made, Finance Charges based on a annual percentage will be disabled.

Detailed instructions
Set up late charges:
  1. From the Edit menu, select Preferences.
  2. Select Finance Charge.
  3. Under the Company Preferences tab, Enter the dollar amount you want to assess for the late fee in the Minimum Finance Charge field.
  4. Select the desired income account in the Finance Charge Account field.
  5. Click OK to close the Preferences window.
  6. From the Lists menu, select Item List.
  7. Double click on the "Fin Chg" item.
  8. Edit the Name and Description of the item say late fee rather than finance charge.

Now when Finance Charges are assessed, QuickBooks Desktop will use this item a create a flat late fee charge.

Assign a class to finance charge invoices:

  1. From the Reports menu, choose Company & Financial and click Profit and Loss by Class.
  2. Under the Unclassified column, double-click the amount created by finance charge invoices.
  3. Double-click each invoice, one at a time, and assign a class for the Fin Chg line item.
    Note: this is not the Class field at the top of the Invoice.
  4. Click Save & Close.
KB ID# HOW12834
4/24/2017 7:51:59 PM
QYPPRDQBKSWS08 9138 Pro 2017 621020