Finance Charge Module normally is using for Property Maintenance Management. With using Finance Charge Module, system will calculate the chargeable amount based on the overdue Invoices automatically. Please take note that Finance Charge Module is an additional module, additional charges will occur. 


Step 1: Setup Finance Charge (Go to File -> System Options -> Finance Charge)


 

  1. Tick Late Payment Charge : To enable the Finance Charge
     
  2. Annual Interest Rate (%)    : Enter the annual interest rate for the calculation of the finance charge
     
  3. Minimum Finance Charge  : To set minimum amount to be charged
  • Enter the minimum finance charges amount if the total finance charges for the particular customer is less than the minimum finance charge amount
  • Example, the minimum charges is RM5.00, total overdue balance for debtor XYZ Company is RM85
  • If the annual interest Rate is set 5 %, the charges should be RM85 * 5% = RM4.25
  • Debtor paid amount will be RM5.00

     

       4. Grace Period (Days): To set number of days allow to extend for the late payment before finance charge

 

  1. &    8.  Apply Late Payment Charges when calculate Late Payment Charges:
    Apply to users who are newly using QNE software and calculate finance charge for for past invoice.

     (8) Last Late Payment Generate Date: User need to set up a date so that system will calculate past invoice finance charge based on “Last Late payment generate Date” instead of the past invoice date  

     Sample setting as below, 
    system will calculate the past invoice finance charge date based on 31/12/2020 instead of 1/12/2020

Financial Cut Off Date

1/1/2021

Past Invoice Date

1/12/2020

Last Late Payment Generate Date

31/12/2020

Next Finance Charge Date

31/1/2021


      6. Include Overdue Late Payment Charge: When Calculate Finance Charges:  System will include the previous month  overdue finance charges when calculate the finance charges

  • Example last month finance charges is RM 55, and the total invoice charges for this month is RM500, system will calculate as RM555 as this month finance charges amount

 

7. Late Payment Cut-Off Date                : To determine finance charge start date
 If the database Financial Cut Off Date as 1/1/2019, user set Late Payment Cut Off date as 1/1/2021, system will not create finance charge for the invoice before 1/1/2021  

 

 

8. Refer to point no. 5.
 

9. Calculate Finance Charge from
 

Due Date - It is referred to the number of days calculate for finance charges. For this option, it’s start calculate finance charges after credit term

 

Invoice Date - It is referred to the number of days calculate for finance charges. For this option, once over the term, system will start calculate after the invoice day

 

 Let try to follow the steps and learn how to generate finance charges


For details please refer to attachment 




You may interest this article  https://www.investopedia.com/terms/f/finance_charge.asp

Click here to learn how to recurred invoice https://support.qne.com.my/support/solutions/articles/81000397784-module-recurring-invoice