Finance Charge Overview

 

Finance charge is calculated at the time statements are run. Tabs3 Billing performs the following steps for each unpaid statement record in accounts receivable when calculating finance charge.

Step #1

Tabs3 Billing looks at the date of the last statement record and calculates the number of days between that statement record and the date of the current statement being run. If the number of days is less than the number of days specified in the Days field on the Billing Options tab in the Client file, then Tabs3 Billing looks at the next unpaid statement record. If the number of days is greater than the number of days specified in the client file, then the finance charge calculation is performed.

After Tabs3 Billing looks at all unpaid statement records, any finance charge amounts that were calculated are then totaled.

Step #2

The total amount calculated in Step #1 is compared with the Minimum Amount and the Bill Minimum Amount options on the Rates tab in Tabs3 Billing Customization to determine if and how much finance charge will be assessed. The following table describes how Tabs3 Billing determines whether finance charge will be assessed and the amount assessed.

Tabs3 Calculated Finance Charge	Minimum Amount	Bill Minimum Amount Option	Results
< Minimum Finance Charge	> 0	Selected	Bill Minimum Amount
= Minimum Finance Charge	> 0	Selected	Bill Calculated Finance Charge
< Minimum Finance Charge	> 0	Cleared	No Finance Charge
= Minimum Finance Charge	> 0	Cleared	Bill Calculated Finance Charge
N/A	= 0	N/A	Bill Calculated Finance Charge

See also:	Setting Up Finance Charge
	Knowledge Base Article R10850 - All About Tabs3 Billing Finance Charges