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What's important about finance charge preferences

Use this window to enter the settings for finance charges that you assess against customers for late payment.

Company-wide preferences

These affect all users. Only the QuickBooks Administrator can change them.

Annual interest rate

The interest rate that QuickBooks will use to calculate finance charges. QuickBooks assumes the rate is a percentage. For example, type 12.5 if your rate is 12.5%.

Minimum finance charge

To have QuickBooks apply a minimum finance charge regardless of the amount overdue, enter the minimum charge here.

Grace period

To give your customers a grace period before finance charges apply, enter the length of the grace period in days. This delays the application of finance charges.

For example, if the starting date is June 1 and the grace period is 3 days, QuickBooks waits until June 4 to assess finance charges.

Finance charge account

Enter the name of the account you use to track finance charges that you collect from customers. This is usually an income account.

Assess finance charges on overdue finance charges

Select this checkbox to assess finance charges on outstanding finance charge amounts.

Important: Laws vary about whether you can charge interest on overdue interest payments. Confirm with the appropriate jurisdiction that you are in compliance with that jurisdiction's lending laws.

Calculate finance charges from

  • Due date: Starts the day the invoice or statement is due.

    For example, if a customer is 5 days overdue on an invoice that was due in 30 days, QuickBooks assesses finance charges on the 5 overdue days, but not the original 30 days.

  • Transaction date: Starts the day you wrote the invoice or statement.

    For example, if a customer is 5 days overdue on an invoice that was due in 30 days, QuickBooks assesses finance charges on the full 35 days (the 30 days to pay plus the 5 overdue days).

See also

KB ID# H_PMT_PREF_FINANCE
9/30/2016 11:59:27 PM
PPRDQSSWS400 9138 Pro 2017 5ac0e8