More companies are adding finance charges to their past-due receivables to encourage timely customer payments.  With TRAVERSE, you can calculate finance charges on overdue invoices for selected customers, adjust the charge before sending out statements and update customer records with the charges.   

 To set up finance charges, go to TRAVERSE System Manager, Company Setup, Business Rules.  Determine the   annual percentage rate to be charged, then divide by twelve.  For example, if charging 18% annually you would use 1.50.  Next determine the Finance Charge Days and Minimum amount to charge.

Now select each customer to whom you want to assign finances charges by checking the ‘Finance Charge’ box in  the Defaults tab of Accounts Receivable, Setup and Maintenance, Customers.

At month-end before printing customer statements, run ‘Calculate Finance Charges’ and enter the statement 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.

Finance charges appear on the customer statement as ‘New’.  These charges can be recalculated until Periodic Maintenance is run at which time these charges will be moved from “New” to “Unpaid Finance Charge”.