Minimum Version Required: 24.01
Steps
1. Setup a finance charge product
Configure the income account maps accordingly to ensure it is hitting the general ledger the way users would like.
This should be a non-inventory product.
Set the price of the product to the percentage they would like billed (As an example, 1% should have the price set to $0.01).
2. Create a CA Finance Charge route
CA Finance Charge Invoices are typically put on load sheets with the LS Type set to 'Statement Charge'.|
-This can be completed by creating a new route type if one does not already exist.
By design, finance charges are not generated for invoices on a 'Statement Charge' load sheet.
3. Configure System Settings 90 & 91
System setting 90 is set by the system when CA finance charges are generated.
System setting 91 controls what product will be used for the finance charge. This will use the product created in step 1.
4. Enable Finance Charges on the Credit Term:
Go to the Credit Terms settings.
Locate the relevant credit term.
Ensure that the 'Charge Finance Charge' field is set to 'True'. This enables the calculation of finance charges for overdue invoices using this credit term.
5. Set Up the AR Account:
Ensure that the 'ARAccount.Term' field is set to the credit term they configured in step 3. This links the AR account to the credit term that has finance charges enabled.
Fields And Definitions
How it Works:
When an invoice associated with the configured AR account becomes overdue, the system will automatically calculate finance charges based on the settings in the associated credit term.
A CA Finance charge will automatically accrue on invoices that are overdue by 42 days.
The calculated finance charges will be added to the customer's account balance as a separate finance charge invoice.
Best Practices
Additional Notes:
There may be other factors or configurations that can influence CA finance charge calculations.
It is recommended to thoroughly test any changes to the CA finance charge settings in a controlled environment such as a test site before applying them to the live system.
These finance charges are designed for the state of California. Any configuration or customization would need to be handled outside of the CA Finance charge process.