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How to Set up Finance Charges in QuickBooks

How to set up finance charges in QuickBooks

What do you mean by QuickBooks finance charges?

These are the fees debited for the cost of credit. These charges assist small organizations to manage timely payments. QuickBooks gain access to finance charges on unpaid balances independent of un-applied payments. This blog will teach you how to access finance charges &
how it can be prevented while accessing on an invoice.

Let’s proceed:

How to set up finance charge preferences in QuickBooks before you begin finance charge access?

  • Sign-in with Admin mode to QuickBooks company file
  • Navigate Edit option located in the menu and choose preferences
  • Afterwards click on Finance Charge and then discover company preferences option
  • Input the Minimum Finance charge, Annual Interest Rate(%), &Grace period Box
  • Search out the account that you wish to track from the drop-down which says Finance charge Account
  • If you don’t wish QuickBooks to access finance charge then unselect the checkbox named Access Overdue finance charge
  • Choose the relevant radio button for invoice/billed or due date to notify whenever you wish the software to perform finance calculations
  • Choose the checkbox named Mark finance charge invoice that needs to be printed whenever there is a need to print entire finance charges in a single mode.
  • QuickBooks will add the finance charges on the customer’s next statement if the
    checkbox is not selected.
  • Hit on OK.

What to do to Assess Finance charge in QuickBooks?

  • Discover the customer option & click on Assess Finance Charges
  • Select the suitable A/R account. Ensure that QuickBooks shows the only field which says
  • A/R account if there is multiple A/R accounts present in Charts of Accounts
  • Select the Assessment date
  • Choose the customer & jobs that you wish to assess finance charge for
  • Hit on Assess Charge (The software generates a Finance charge invoice per client).

Methods to preclude finance charges from being assessed
There are two techniques available to exclude invoice from a customer balance whenever assessing finance charges:

First method:

  • Add a job to exclude from finance charges:
  • Navigate customer menu & then choose Customer Center
  • Choose the customer then hit on Add Job listed on drop-down located in the upper left
  • Write customer Name & No FC in the field named Job Name
  • Click OK
  • Modify the invoice and add the customer that you recently created
  • Hit in Save & Close
  • Locate Customer menu and then click Access Finance Charges
  • Now you can choose the invoice that you wish to apply finance charges without selecting the newly-created invoice

Second Method:
Add another receivable account that you can block from finance charges:

Below are the steps:

  • Navigate Company menu and choose Chart of Accounts
  • Look out the window named Chart of Account and perform a right-click from your mouse anywhere on the screen then select New
  • Choose Other Account Types and afterward choose Account Receivable listen on the
    drop-down button
  • Hit on Continue
  • Write Account Receivable –No FC on the appearing Account field
  • Modify the existing invoice that you want to block from the finance charge and then hit on the new A/R account.

Conclusion:

Hopefully, this blog guided you on how to setup finance charges in QuickBooks. As the finance charges parameter in QuickBooks is tricky if you stuck in any of the steps or face any other QuickBooks error reach the team at toll-free QuickBooks  number 1800-816-6849. The team members are carrying years of experience to quickly provide a better resolution in a single call. Even though there is another method of dropping an email & live chat. Don’t forget to comment if you need any other assistance.

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