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Finance charges are calculated when you print customer statements. Finance charges can be printed on customer statements. However, finance charge amounts are not automatically tracked by FirstEdge; they're merely printed on the statements. This gives you the freedom to decide how you want to deal with finance charges. (To track finance charges for customers)
When you print customer statements, the credit terms you've set up for the customers whose statements you're printing will be used to calculate each customer's finance charge amount.
If you assign finance charges to balances that aren't paid by their due date, finance charges will be assessed beginning the day after the due date. Due dates and finance charge amounts are determined by the selections you make for each of your customers in the % Monthly Charge for Late Payment field of the Selling Details view of the Card Information window.
A finance charge amount is calculated in FirstEdge by multiplying the customer's overdue balance by 1/30th of the monthly finance charge rate for each day the balance is overdue. For example, if a customer's overdue balance is $100 and their monthly finance charge rate is 1.5%, their daily finance charge rate is .05% (1/30th of 1.5%), and their finance charge amount for each day their payment is overdue is $0.05 ($100 multiplied by .05%).
If a customer pays part of an overdue balance during the overdue period -- and you use the Receive Payments window to apply the payment -- the finance charge amount that's calculated will be based upon the remaining overdue balance.
If you wish to include the finance charges in the amount due for the customer on a customer statement, mark the selection Include Finance Charges in Amount Due in the Advanced Filters window. (Advanced Filters window)
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