Financial charges are the charges such as late fees or interest that you collect on unpaid balances. In this article, we will show you how does QuickBooks calculate finance charges and also how you can prevent QuickBooks from assessing financial charges. But before beginning, you will need to set up financial charges to enable the QuickBooks to assess the financial charges.
How to set up financial charges preferences?
- First of all login to your QuickBooks online company files as an Admin.
- Now Go to the Edit Menu and select Preferences.
- Under Preferences select Finance Charges and then open the Company Preferences tab.
- Here fill in the data such as Annual Interest rate, Minimum Finance Charges, Days of Grace period offered etc.
- Now from the Finance charges drop-down menu select the account that you will use to track the income from finance charges.
- If you do not wish the QuickBooks calculate finance charges on overdue financial charges then you can optionally clear the Assess overdue financial charges checkbox.
- Select the appropriate option from invoice date and due date for the QuickBooks to consider for calculating the financial charges.
- Optionally you can also put a mark on the finance charges invoices as ‘To be printed’. This will print all the invoices with financial charges in a single Go. You can remove the selection if you send a statement to your customers. The financial charges will be included in the next statement sent to the customers.
- Click on OK to complete the financial charges set up.
How does the QuickBooks Calculate finance charges?
- To assess the QuickBooks calculate finance charges go to the customer’s menu and then select Assess Financial Charges.
- Choose appropriate A/R account.
- Set the appropriate assessment date.
- Select the customers for whom you wish to assess the financial charges.
- Choose Assess financial charges.
- Thus the aforesaid is the method by which QuickBooks calculate finance charges, how to remove finance charges in QuickBooks online, how to add late fees in QuickBooks online, how does QuickBooks assess finance charges and much more.
- There are options available in which you can exclude a customer or a certain invoice from coming in the loop of financial charges.
- For any guidance regarding the same or if you are facing any problem in setting up of financial charges kindly contact our QuickBooks error support team anytime you want on our Toll-Free Number ✆+1-800-961-6588.
- We have a pool of trained technicians who work hard to resolve any QuickBooks related queries and make the working on QuickBooks simple.
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