Finance charges on past-due receivables are one option to encourage timely customer payments.  With OSAS, you can calculate finance charges on overdue invoices for selected customers, adjust the charge before sending out statements and update customer records.   

 To set up finance charges, go to OSAS Accounts Receivable, Codes Maintenance, Finance Charges.  Determine the   annual percentage rate to be charged, then divide by twelve.  For example, if charging 18% annually you would use 1.50 for the Percent.  Next determine the Minimum Charge and Open Invoice Days to use to start charging finance charges.  Note that you can setup multiple finance charges but assign only one per customer.

Now select each customer to whom you want to assign finances charges by checking the ‘Finance Charge’ box in  the Credit and Balance screen of Accounts Receivable, File Maintenance, Customers and assigning the appropriate Finance Charge Code already setup.

At month-end before printing customer statements, run ‘Calculate Finance Charges’ and enter the statement date and whether you want the Finance Charges based on the Invoice Date or the Due Date .  A report displaying each customer and the amount of each finance charge will print.  You can adjust these amounts in the Balance tab of Customer Setup, ’New’ Finance Charge, then print the customer statement with the adjusted amount.

Finance Charges can be recalculated until Periodic Maintenance is run at which time these charges will be moved from ‘New’ to ‘Unpaid Finance Charge’ in the Customer Credit and Balance Information screen.