I'm using QB Online Simple Start. I have a customer who is late on an invoice and plans to make smaller partial payments over the coming months. Our signed agreement includes an assessment of 10% interest, compounded monthly for overdue payments.
Any ideas on how to handle 1) assessing the interest, 2) receiving a partial payment, 3) assessing continued interest on outstanding balance (after applying the partial payment to interest first)?
Original invoice: $4,500
Interest (50 days late on $4,500): $61.45
Total due: $4,561.45
Partial payment #1: $500
Interest (57 days late on $4,061.45): $64.56
New balance: $4,126.01
Any help/similar situation/creative workaround would be much appreciated!
QBO makes this hard, the software is not designed for this situation at all
You will need a service type item linked to a finance charge income account
create a new invoice for the finance charge
then in receive payments, receive the full amount against the finance charge invoice, then the balance of the payment against the original invoice.
you can then send a statement to the customer showing the balance due.
QBO does not allow for statement charges to be entered.
I have an unpaid balance on an Invoice since 6-4-2018 of $450.00...I charged a late fee of $20.00. How do I access finance charges on a compounded monthly basis each month. QB's is only accessing finance charges on the original unpaid balance. Please help with the calculations on how I go about charging 1.5%/18 % per annum ....I keep coming up with conflicting figures.
Please work out: $450.00 + 20.00= $470.00, plus compounded interest charged on total amount including interest from 6-4-2018 to 10-1-2019....and how you went about it. Totally appreciate it. Thanks
I have a similar problem. I have a customer that we did a large job for. They currently owe us $97,410.10 total between two different dated invoices 9/12/19 $73,057.80 & 10/15/19 $24,352.60. Settings set to 18% w/1.5% monthly. A grace period of 30 days from due date of invoice. Each time QB Desktop calculates the finance charge it comes up different. If I change any of the settings then recalculate the FC comes up the same. Very frustrating. I found that if I close down QB and restart after making the changes then go back into FC it will give a different amount but I cannot figure out if it is right. Has anyone from QB contacted you to help????? I would appreciate if anyone wants to reply with the correct finance charges. As of today the first invoice is 125 & 65 on #2 days.
I appreciate the amount of detail you've included in this post.
If you've already finished setting up your finance charge preferences but the assessment keeps coming up with different results, I suggest contacting our Technical Support team for assistance.
They can pull up your account info within a secure environment. They can also offer a screen share session, with your permission. With that, they can dig deeper as to why you're experiencing this issue.
On the other hand, you can bill your customers every month using statement charges. Learn more about this via the article: Create statement charges.
Do you have other questions or clarifications? Post them below, and I'll get back to you as soon as I can.