Charge memo in OC Financial Leasing App
- Petra Jankovicova
- Molitorisová Marianna
Finance Charge Memo is a possibility how to charge interest for overdue invoices to relevant customers.
Firstly it is necessary to create Finance Charge Term and assigned it to all relevant customers.
Finance Charge memo has header and lines as e.g. invoice. It could be created :
Manually - by button New from Finance Charged Memo menu - It is used if only one finance charge memo is needed for a single customer.
There are few steps to create Finance charge memo
Select relevant customer
Select Posting and Document Date - to which date is the charges calculated
Check the Finance Charge Term - Make sure that you assign any Fin. Charge Term Code to the customer. You can change the Finance Charge Term in Finance Charge Memo if you need it.
Check the Due Date for issued Charges Memo
Calculate charges by batch Suggeste Fin.Charge Memo Lines in Finance Charge card menu "Actions – Function – Suggeste Fin.Charge Memo Lines"
The system offers items and calculate the charges according to the selected parameters and Finance Charge Term.
The offered items could be edited or deleted from the Finance Charge Memo Lines. The created Finance Charge Memo could be issued (menu Actions-Issuing-Issue)
Automatically - by batch from Finance Charged Memo menu Process - Create Finance Charge Memo - typically use this to generating finance charge memos for all customers
Please, see the Example
You can also use Reminders and charge the interest in reminders.
Setup Finance Charge Term
Finance Charge Term specify how Finance Charge Memos would be calculated. It must be assigned to every relevant customer. It is necessary to fill some information about the Finance Charge term.
Code - short code - name of charge term
Description, Line description, Detailed line description - You can also use the placeholders that are shown in the following table to automatically insert related values in the resulting finance charge memo text.
Minimum amount – from which amount you want to Issue Charges Memo – If there is 0 the system calculates charges from all due items wo amount condition, if 10 the total of calculated charges must not be less than 10
Additional fees – to add to the Finance charges also some additional fees e.g. some Issue Fees (– In the last line of prepared Charges memo – fill the G/L account for posting these fees)
Interest rate, Interest Period (Days) – fill the rate and period for this rate – e.g.1,5% monthly
Interest Calculation – Select from which items should be charges calculated
Example of Finance Charge Memo
Create Finance Charge Memo for overdue invoices of customer Adatum Corporation to 31.7.2021