Tabs3 Billing uses the following formula to calculate finance charge:

Amount x Rate x Days
-----------------------------------
                365

Tabs3 Billing determines the values for the variables in this formula as follows:

Amount Amount is equal to the total unpaid amounts from past due statements.

Note: The outstanding finance charge will be included in the Amount if the Subject to Finance Charge option on the Rates tab in Tabs3 Billing Customization is selected.

Rate To determine the Rate, Tabs3 looks at the Rate option on the Billing Options tab in the Client file. The code entered there corresponds to one of the five finance charge rates specified on the Rates tab in Tabs3 Billing Customization.
Days Days is equivalent to the number of days between the client’s last statement date and the date of the current statement being run minus the number of days specified for the client's finance charge billing option. For example, if the client has "60" days entered in the Days field on the Billing Options tab in the Client file, and the number of days between the current statement and the statement record being looked at is 63, then Tabs3 Billing computes a finance charge based on the client being 3 days past due, not 63 days.

Notes: The precise formula Tabs3 Billing uses to calculate finance charges is far more complex. A flow chart with exact details can be found in the appendices of the Tabs3 manual or in Knowledge Base article R10850, “All About Tabs3 Finance Charges.”

If desired, the amount used to calculate finance charge can be printed on the statement. This terminology is configured on Line 35 of the Terminology tab in Statement Customization.