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SecJill
Level 1

Finance Charge

When finance charges are run they are inconsistent. For example a customer will be accessed (balance due $607) month 1- $12.70, month 2- $30.57, month 3- $14.69....month 6-$93.64, month 7- $9.30, month 8- $121.82, month 9- $9.59. I can't seem to find any pattern or reason why. I even have one customer who will go from $3 to $400 in one month! Under company preferences I have the annual percentage rate (18%), minimum finance charge (1.00) grace period of 30 days and calculate charges from "due date".  I am running Quickbooks Desktop Por 2017. HELP! 

1 Comment 1
Anonymous
Not applicable

Finance Charge

Great day, @SecJill,

 

It's great to see you here today. I can help you get to the bottom of this.

 

QuickBooks uses this equation to determine your finance charges: Number of days past due x Balance due x rate / 365.  Also, QuickBooks calculates the interest on both the original overdue amount and on the finance charge amount.

 

If you're seeing a different amount calculated when assessing your finance charges, let's review if there are changes made to your invoices.


You can do that by pulling up an Audit Trail report. Here's how:

  1. Go to the Reports tab.
  2. Choose Accountant and Taxes from the list.
  3. Click Audit Trail.
  4. Update the reporting period in the Date Entered/Last Modified or From and To fields.
  5. Click the Refresh button.

If there aren't any changes applied to them, try running the Verify/Rebuild Utility. This tool identifies and fixes data issues within the company file.

 

To Verify Data:

  1. Go to the File menu.
  2. Tap Utilities then Verify Data.
  3. Click OK on the prompt.

To Rebuild Data:

  1. Click the File menu.
  2. Go to Utilities and select Rebuild Data.
  3. Hit OK to back up your company file.
  4. Wait until the Rebuild is complete.
  5. Click View Results.

That should get you on the right track, @SecJill. Let me know how the troubleshooting goes by leaving a comment below. I'm always here to assist you. Have a wonderful day!

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