/
Cancellation Finance Charge Memos

Cancellation Finance Charge Memos

Owned by Lango: Language and translation manager
Last updated: Sept 09, 2024Version comment
2 min read

Cancellation finance charge is used to cancel an unjustifiably issued finance charge (e.g. a finance charge issued before the payment from the customer is paired). Cancellation of the penalty can be done manually from the Issued Finance Charge Memo selected in the overview or directly from the card using the Cancellation In the Process. 

Once confirmed, the system will display a dialog box

Field:

  • Use Same Document No.

    • Specifies whether the same document number is used for adjustment entries. If the value of the field will be No, bUDE Assigned Document No. From Cancelled Issued Finance Charge Numbers fieldthat is set in the Sales & Receivables Setup

  • Use Same Posting Date

    • Specifies whether the same posting date will be used for adjustment entries as for the issued finance charge memo

  • New Posting Date

    • Specifies a new posting date for adjustment entries

    • Editable only if Use Same Posting Date = No

After confirmation OK system:

  • Fills in the fields in the original finance charge memo

    • Cancelled = Yes

    • Canceled By, Canceled Date and Canceled by Document No.

  • Goes through the issued finance charge lines (only those lines that have the Detailed Interest Rates Only = false flag)

  • If it's a line of type Customer Entry, so it finds matching customer entries and changes the fields Closing Interest Calculated on No

  • Finds records in a table Reminder/Finance Charge Entry and mark the items from that finance charge memo and the customer ledger entry Canceled = Yes

  • Sums the amount from the fields Amount and VAT Amount from these lines and this amount is entered in the general journal after going through all the lines

  • If it's a line of type G/L Account, so they can find out if they have the Post Additional Fee and if Yes, then creates a line in the general journal for the amount according to the finance charge line

  • After creating journal lines from a point (the previous two points), another journal line is created as a counter-account for the opposite total amount per customer. Then the journal is posted.

Items with finance charge cancellations can be re-penalized.