Finance Charge Terms Table
Defines the conditions for finance charge calculations. You must set up a code representing each finance charge calculation. Then you can enter this code in the Fin. Charge Terms Code field on customer cards. Afterward, when you calculate finance charges on open entries, the program will use the information represented by the code. You can also register finance charge terms codes on vendor cards.
The finance charge terms you define in this table are in LCY. For each finance charge terms code, you can also define an additional fee in foreign currency for each currency that you do business in. To do so, click Related Information, point to Terms and then click Currencies in the Finance Charge Terms window, and fill in the information in the Currency for Fin. Charge Terms table.
In addition, each code in the Finance Charge Terms table is linked to a subtable, the Finance Charge Text table. For each set of finance charge terms, you can define a beginning and/or an ending text to be included on the finance charge memo.
Finance charges can be calculated using either the average daily balance method or the balance due method.
With the balance due method, the finance charge is simply a percentage of the overdue amount:
Balance Due method:
Finance Charge = Overdue Amount * (Interest Rate / 100)
The average daily balance method takes into account how many days the payment is overdue:
Average Daily Balance method:
Finance Charge = Overdue Amount * (Days Overdue / Interest Period)*(Interest Rate/100)
Finance charges are not calculated until you run the Create Finance Charge Memos or Suggest Fin. Charge Memo Lines batch jobs, or you use the equivalent batch jobs for reminders. The program then creates lines in one or more finance charge memos or reminders, which you can modify if necessary. After this, you can print the Reminder report and issue the finance charge or reminder.
List of Fields in the Table
To see the list of fields in this table, change to the Classic view. Choose the Choose View button in the upper-right corner, and then choose Classic.