__Finance Charges Calculation Formula – PART 1__

__Settings__

- Tick “Finance Charge”
- Insert Number for Annual Interest Rate (%)
- Select “Due Date”

**Calculation for January**

= [(Jan Invoice Amount x Annual Interest Rate) x (Total Day of Jan – Due Date)] / 365

**Calculation for February**

= [(Feb Invoice Amount x Annual Interest Rate) x (Total Day of Feb – Due Date)] / 365

+ [(Jan Invoice Amount x Annual Interest Rate) x Total Day of Feb] / 365

**Calculation for March**

= [(Mar Invoice Amount x Annual Interest Rate) x (Total Day of Mar – Due Date)] / 365

+ [(Feb Invoice Amount x Annual Interest Rate) x Total Day of Mar] / 365

+ [(Jan Invoice Amount x Annual Interest Rate) x Total Day of Mar] / 365

**Calculation for April**

= [(Apr Invoice Amount x Annual Interest Rate) x (Total Day of Apr – Due Date)] / 365

+ [(Mar Invoice Amount x Annual Interest Rate) x Total Day of Apr] / 365

+ [(Feb Invoice Amount x Annual Interest Rate) x Total Day of Apr] / 365

+ [(Jan Invoice Amount x Annual Interest Rate) x Total Day of Apr] / 365

__Finance Charges Calculation Formula – PART 2__

__Settings__

- Tick “Finance Charge”
- Insert Number for Annual Interest Rate (%)
- Tick “Include Overdue Finance Charges When Calculate Finance Charges”
- Select “Due Date”
- Set 10 Days Term (Set at Debtor or Invoice)

**Calculation for January**

= [(Jan Invoice Amount x Annual Interest Rate) x (Total Day of Jan – Due Date - Term)] / 365

**Calculation for February**

= [(Feb Invoice Amount x Annual Interest Rate) x (Total Day of Feb – Due Date - Term)] / 365

+ [(Jan Invoice Amount x Annual Interest Rate) x Total Day of Feb] / 365

+ [(Jan Finance Charges x Annual Interest Rate) x (Total Day of Feb - Term)] / 365

**Calculation for March**

= [(Mar Invoice Amount x Annual Interest Rate) x (Total Day of Mar – Due Date - Term)] / 365

+ [(Feb Invoice Amount x Annual Interest Rate) x Total Day of Mar] / 365

+ [(Jan Invoice Amount x Annual Interest Rate) x Total Day of Mar] / 365

+ [(Feb Finance Charges x Annual Interest Rate) x (Total Day of Mar - Term)] / 365

+ [(Jan Finance Charges x Annual Interest Rate) x Total Day of Mar] / 365

**Calculation for April**

= [(Apr Invoice Amount x Annual Interest Rate) x (Total Day of Apr – Due Date - Term)] / 365

= [(Mar Invoice Amount x Annual Interest Rate) x Total Day of Apr] / 365

+ [(Feb Invoice Amount x Annual Interest Rate) x Total Day of Apr] / 365

+ [(Jan Invoice Amount x Annual Interest Rate) x Total Day of Apr] / 365

+ [(Mar Finance Charges x Annual Interest Rate) x (Total Day of Apr - Term)] / 365

+ [(Feb Finance Charges x Annual Interest Rate) x Total Day of Apr] / 365.

+ [(Jan Finance Charges x Annual Interest Rate) x Total Day of Apr] / 365

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