Troubleshooting Finance Charge Calculations in QuickBooks

Learn how to assess finance charges in QuickBooks Desktop for Windows and Mac, and the way to stop a finance charge from being assessed on an invoice.

Calculate finance charges

• Attend the Customers menu, then select Assess Finance Charges.
• Choose the acceptable A/R account. Note that QuickBooks displays the A/R Account field only your Chart of Accounts contains quite one A/R.
• Set the Assessment date.
• Select the Customers and jobs you would like to assess finance charges for.
• Select Assess Charges.

Note: once you assess finance charges, QuickBooks creates a Finance Charge Invoice per customer. You've got the choice to print it or leave it cleared to be included in your next statements.

Prevent a finance charge from being assessed on an invoice

There are two methods available if you would like an invoice to be excluded from a customer balance when assessing finance charges in QuickBooks.

Option 1: Create employment that's excluded from finance charges

• Attend the Customers menu, then select Customer Center.
• Select the customer, then choose Add Job from the drop-down at the upper left.
• within the Job Name field, enter Customer Name - No FC.
• Select OK.
• Edit the invoice and alter the customer to the work you only created.
• Select Save & Close.
• Attend the Customers menu, then select Assess Finance Charges.
• You'll now select which invoices you would like to use finance charges to without choosing the new job's invoice.

Option 2: Create second assets that you simply can exclude from finance charges

• Attend the corporate menu, then select Chart of Accounts.
• Within the Chart of Accounts window, right-click anywhere, then choose New.
• Select Other Account Types, then select assets from the drop-down.
• Select Continue.
• Within the Account Name field, enter assets - No FC.
• Select Save & Close.
• Edit any existing invoices you'd wish to exclude from finance charges, then select the new A/R account.
  • Once you create or edit invoices, You'll now choose which A/R account you wish to use.
  • Once you attend the Customers menu then select Assess Finance Charge, You'll have the choice to pick which A/R you would like to use to assess finance charges.

QuickBooks Desktop for Windows

Before you begin assessing finance charges, you would like to line up your Finance Charge preferences.

• Log in to the QuickBooks company file as Admin.
• Attend the Edit menu, then select Preferences.
• Select Finance Charge, then attend the corporate Preferences tab.
• Fill within the Annual rate of interest (%), Minimum Finance Charge, and beauty Period (days) fields.
• From the Finance credit account drop-down, select the account you employ to trace income from finance charges.
• (Optional) If you do not want QuickBooks to assess finance charges on overdue finance charges, clear the Assess overdue finance charges checkbox. Note: Laws vary about whether you'll charge interest on overdue interest payments. Confirm with the acceptable jurisdiction that you simply suit that jurisdiction's lending laws.
• Select the acceptable radio button for maturity or invoice/billed date to point once you want QuickBooks to calculate finance charges.
• (Optional) Select the Mark finance charge invoices as "To be printed" checkbox if you would like to print all of your finance charge invoices during a single operation. If you send statements, leave this checkbox cleared.
• QuickBooks will include the finance charges on the subsequent statement to the customer.
• Select OK.

Calculate finance charge

• Attend the Customers menu, then select Assess Finance Charges.
• Choose the acceptable A/R account. Note that QuickBooks displays the A/R Account field only your Chart of
• Accounts contain quite one A/R.
• Set the Assessment date.
• Select the Customers and jobs you would like to assess finance charges for.
• Select Assess Charges. Note: once you assess finance charges, QuickBooks creates a Finance Charge Invoice per customer. You've got the choice to print it or leave it cleared to be included in your next statements.

Prevent a finance charge from being assessed on an invoice

There are two methods available if you would like an invoice to be excluded from a customer balance when assessing finance charges.

Option 1: Create employment that's excluded from finance charges

• Attend the Customers menu, then select Customer Center.
• Select the customer, then choose Add Job from the drop-down at the upper left.
• Within the Job Name field, enter Customer Name - No FC. Select OK.
• Edit the invoice and alter the customer to the work you only created.
• Select Save & Close.
• Attend the Customers menu, then select Assess Finance Charges.
• You'll now select which invoices you would like to use finance charges to without choosing the new job's invoice.

Option 2: Create second assets that you simply can exclude from finance charges

• Attend the corporate menu, then select Chart of Accounts.
• Within the Chart of Accounts window, right-click anywhere, then choose New.
• Select Other Account Types, then select assets from the drop-down.
• Select Continue.
• Within the Account Name field, enter assets - No FC.
• Select Save & Close.
• Edit any existing invoices you'd wish to exclude from finance charges, then select the new A/R account.
• Once you create or edit invoices, you'll now choose which A/R account you wish to use.

When you attend the Customers menu then select Assess Finance Charge, you'll have the choice to pick which A/R you would like to use to assess finance charges.

QuickBooks Desktop for Mac

Set up finance charges preferences for QuickBooks to assess finance charges with any customers whose payments are late. Here's how.

Set up finance charge

• Attend QuickBooks, then select Preferences.
• Select Finance Charges. Enter your finance charge information for the Annual rate of interest %, Minimum finance charge, Grace period (days).
• (Optional) you'll enter a finance charge title.
• Set the date once you want to start out assessing finance charges.
  • Maturity(Due Date)
  • Invoiced/Billed Date
• Choose the account to trace income from finance charges.
• (Optional) If you do not want to assess finance charges on overdue finance charges, clear the checkbox for it.
• (Optional) To print your finance charge invoices to send to customers, select Mark finance charge invoices To be printed checkbox. If you send statements, leave this checkbox.

Assess finance charge

• Attend Customers, then select Assess Finance Charge.
• From the Assess column, select the customer and job which you would like to assess finance charges.
• (Optional) Change any finance charge amount by typing over the amounts shown within the Finance Charge column. To vary the rate of interest, select Settings and enter the new rate.
• (Optional) If you propose to print the finance charge invoices to send to customers, select the Mark invoices To be printed checkbox. If you send statements, leave this checkbox cleared.