21st Century Accounting Help - Receivables/Configure

Finance Charges

Use the Receivables/Configure/Finance Charges window to indicate how to handle Level Method and Average Daily Balance Method finance charges.

Level method

For all customers who are subject to finance charges (set up in Configure/Customers to indicate whether to include this cusotmer when the system calculates finance charges), the system uses the Level Method to calculate finance charges (unless you specify the Average Daily Balance Method for Revolving type customers). You can set up two levels of finance charges and minimum balances.

Average daily balance method

Check the box if you want to use the Average Daily Balance method for revolving charge account customers and set up a minimum balance and a finance charge rate.

(You set fixed or revolving payment minimums and credit limits on a customer basis in Receivables/Configure/Customers.)