Finance Charges

assess

Yes, but you have to set up an income account to do so. Also, depending upon your jurisdiction, finance charges may not be legally collectible, especially finance charges on past due interest payments. You will need to check before setting this up.

Thanks Dave. How do you get QB to post the FC automatically?

depends on your version of Quickbooks, but you should be able to set it up in preferences in the edit menu or in the customer menu go to assess finance charges and click the settings button.

He is using QuickBooks 99 - which I don't even have on my PC anymore. But I am trying to get him to upgrade to 2005 anyway and if 2005 does this he just might make the switch.

I have looked in the preferences and settings for finance charges and I don't see any indication it will "Automatically" access a charge. The way I have used finance charges in QB in the past is to set up the preferences and them "manually" post the finance charges when I print statements. QB does the calcuations on the interest rate and dates according to the preferences. What this client wants if for the entry to be posted (like a memorized transaction) based on the terms (ie a customer is billed on the 10th w/ terms of Net 15. If after 15 days payment is not rec'd - he wants QB to post a finance charge).

Any suggestions?

Now I see what you are trying to get at. No, Quickbooks cannot 'automatically' enter the charges. You can set them up, but then once a month or whenever, you'll have to manually assess the charges.