Setting Finance Charge Preferences

Do you charge your customers a fee for late payments? If so, you can create several settings to ensure that the process of assessing finance charges is consistent and automatic. Any settings you establish here can be revised later, but you'll save yourself time by thinking through these options and configuring the settings before you start dealing with customers who made late payments.

Select Preferences from the Edit menu.

Click the Finance Charge icon.

Click the Company Preferences tab.

Indicate the Annual Interest Rate that your company charges for late customer payments.

Indicate the Minimum Finance Charge, if any, that your company assesses on late payments.

Enter the number of days in the Grace Period (days) field allowed before finance charges are assessed.

Enter the Finance Charge Account you use to track finance charges.

Check Assess Finance Charges on Overdue Finance Charges if you add previous finance charges to the balance when computing additional finance charges.

Select an option in the Calculate Charges From section.

Check Mark Finance Charge Invoices "To Be Printed" if you want to send an invoice to customers when finance charges are assessed. If you check this box, QuickBooks automatically generates invoices and places them in your print queue.

Click OK.