Invoice - Finance Charges

Below are some examples of different types of Finance Charges.  Whether you want to retroactively apply charges or just to initially set up.
 

Finance Charge Calculation Examples

To help explain how finance charges are calculated by Avionté, several examples are provided below. These examples apply to version 13.2 and beyond.
 
Note: Finance charges will only show on the Statement Letter and AR Aging Report. Finance charges are NOT shown on an invoice.
 
 

 

 

Example 5: Finance charges set up at the beginning; corrections made; retroactive charges apply

 

Preconditions

Customer with invoices overdue. 

 

Table 16. Retroactive Charges Apply

 

Invoice number Due date Invoice amount Bill amount Balance amount Sales tax Discount amount Total finance charges
101 1/1/2013 $100.00 $100.00 $96.12 0 0 $6.12
101-R1 1/1/2013 $60.00 $60.00 $60.00 0 0 0
101-R2 1/1/2013 - $10.00 - $10.00 $0.00 0 0 0
 
Table 17. Finance charges

 

Invoice number Month ID Finance charge date Chargeable amount Finance charge amount Total chargeable amount due Charge type
101 1 1/2/2013 $100.00 $2.00 $102.00 Retroactive
101 2 2/2/2013 $102.00 $2.04 $104.04 Retroactive
101 3 3/2/2013 $104.04 $2.08 $106.12 Retroactive

 

Results

Table 18. Finance charges assessed after first invoice correction

Invoice number Month ID Finance charge date Chargeable amount Finance charge amount Total chargeable amount due Charge type Finance charge removed?
101 1 1/2/2013 $100.00 $2.00 $102.00 Retroactive Yes
101 2 2/2/2013 $102.00 $2.04 $104.04 Retroactive Yes
101 3 3/2/2013 $104.40 $2.08 $106.12 Retroactive Yes
101 1 1/2/2013 $100.00 - $2.00 $102.00 Removal No
101 2 2/2/2013 $102.00 - $2.04 $104.04 Removal No
101 3 3/2/2013 $104.04 - $2.08 $106.12 Removal No
101 1 1/2/2013 $160.00 $3.20 $163.20 Correction No
101 2 2/2/2013 $163.20 $3.26 $166.46 Correction No
101 3 3/2/2013 $166.46 $3.33 $169.79 Correction No
 
Table 19. Finance charges assessed after the second invoice correction

 

Invoice number Month ID Finance charge date Chargeable amount Finance charge amount Total chargeable amount due Charge type Finance charge removed?
101 1 1/2/2013 $100.00 $2.00 $102.00 Retroactive Yes
101 2 2/2/2013 $102.00 $2.04 $104.04 Retroactive Yes
101 3 3/2/2013 $104.04 $2.08 $106.12 Retroactive Yes
101 1 1/2/2013 $100.00 - $2.00 $102.00 Removal No
101 2 2/2/2013 $102.00 - $2.04 $104.04 Removal No
101 3 3/2/2013 $104.04 - $2.08 $106.12 Removal No
101 1 1/2/2013 $160.00 $3.20 $163.20 Correction Yes
101 2 2/2/2013 $163.20 $3.26 $166.46 Correction Yes
101 3 3/2/2013 $166.46 $3.33 $169.79 Correction Yes
101 1 1/2/2013 $160.00 - $3.20 $163.20 Removal No
101 2 2/2/2013 $163.20 - $3.26 $166.46 Removal No
101 3 3/2/2013 $166.46 - $3.33 $169.79 Removal No
101 1 1/2/2013 $150.00 $3.00 $153.00 Correction No
101 2 2/2/2013 $153.00 $3.06 $156.06 Correction No
101 3 3/2/2013 $156.06 $3.12 $159.18 Correction No
 
Table 20. Invoices updated as follows

 

Invoice number Due date Invoice amount Bill amount Balance amount Sales tax Discount amount Total finance charges
101 1/1/2013 $100.00 $100.00 $99.18 0 0 $9.18
101-R1 1/1/2013 $60.00 $60.00 $60.00 0 0 0
101-R2 1/1/2013 - $10.00 - $10.00 $0.00 0 0 0

 

 

Example 6: Finance charges with a gap; payment made; corrections made; retroactive charges apply

 

Preconditions

Customer with an overdue invoice, with a payment made of $50.00.


Table 21. Invoices updated as follows

 

Invoice number Due date Invoice amount Bill amount Balance amount Sales tax Discount amount Total finance charges
101 1/1/2013 $100.00 $100.00 $96.12 0 0 $6.12
101-R1 1/1/2013 $25.00 $25.00 $25.00 0 0 0
 
Table 22. Finance charges

 

Invoice number Month ID Finance charge date Chargeable amount Finance charge amount Total chargeable amount due Charge type
101 1 1/2/2013 $100.00 $2.00 $102.00 Regular
101 2 2/2/2013 $102.00 $2.04 $104.04 Regular
101 3 3/2/2013 $104.04 $2.08 $106.12 Regular
101 4 5/2/2013 $56.12 $1.12 $57.24 Regular
101 5 6/2/2013 $57.24 $1.14 $58.38 Regular

 

Results

Table 23. Finance charges assessed after the second invoice correction


Invoice number Month ID Finance charge date Chargeable amount Finance charge amount Total chargeable amount due Charge type Finance charge removed?
101 1 1/2/2013 $100.00 $2.00 $102.00 Regular Yes
101 2 2/2/2013 $102.00 $2.04 $104.04 Regular Yes
101 3 3/2/2013 $104.04 $2.08 $106.12 Regular Yes
101 4 5/2/2013 $56.12 $1.12 $57.24 Regular Yes
101 5 6/2/2013 $57.24 $1.14 $58.38 Regular Yes
101 6 7/2/2013 $58.38 $1.17 $59.55 Retroactive Yes
101 7 8/2/2013 $59.55 $1.19 $60.74 Retroactive Yes
101 1 1/2/2013 $100.00 - $2.00 $102.00 Removal No
101 2 2/2/2013 $102.00 - $2.04 $104.04 Removal No
101 3 3/2/2013 $104.04 - $2.08 $106.12 Removal No
101 4 5/2/2013 $56.12 - $1.12 $57.24 Removal No
101 5 6/2/2013 $57.24 - $1.14 $58.38 Removal No
101 6 7/2/2013 $58.38 - $1.17 $59.55 Removal No
101 7 8/2/2013 $59.55 - $1.19 $60.74 Removal No
101 1 1/2/2013 $125.00 $2.50 $$127.50 Correction No
101 2 2/2/2013 $127.50 $2.55 $130.05 Correction No
101 3 3/2/2013 $130.05 $2.60 $132.65 Correction No
101 4 5/2/2013 $82.65 $1.65 $84.30 Correction No
101 5 6/2/2013 $84.30 $1.68 $85.98 Correction No
101 6 7/2/2013 $85.98 $1.72 $87.70 Correction No
101 7 8/2/2013 $87.70 $1.75 $89.45 Correction No
 
Table 24. Invoices updated as follows

 

Invoice number Due date Invoice amount Bill amount Balance amount Sales tax Discount amount Total finance charges
101 1/1/2013 $100.00 $100.00 $64.45 0 0 $14.45
101-R1 1/1/2013 $25.00 $25.00 $25.00 0 0 0

 

 

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