QuickBooks for Mac 2014 User’s Guide 113
Setting up for finance charges
If you've set up payment terms for your customers, QuickBooks can assess finance charges for any customers
whose payments are late.
To set up for finance charges:
1 Choose QuickBooks > Preferences and then click Finance Charges.
2 Enter your finance charge information (annual interest rate, minimum finance charge, grace period).
o Annual interest rate: This is the interest rate QuickBooks will use to calculate finance charges.
QuickBooks assumes the rate is a percentage. For example, you would type 12.5 if your rate is
12.5%.
o Minimum finance charge: To apply a minimum finance charge regardless of the amount
overdue, enter it here.
o Grace period (days): To allow a grace period before finance charges apply, enter the length of
the grace period in days. This delays the application of finance charges. For example, if the
starting date is June 1st and the grace period is 3 days, QuickBooks waits until June 4th to assess
finance charges.
3 (Optional) Enter a finance charge title.
4 Indicate the date when you want to start assessing finance charges.
o Due date: The day the invoice is due.
o Transaction date: The day you wrote the invoice.
5 Choose the account to track income from finance charges. This is usually an income account.
6 (Optional) If you don't want to assess finance charges on overdue finance charges, clear the
checkbox for it.
7 (Optional) To be able to print your finance charge invoices to send to customers, select the “Mark
finance charge invoices as 'To be printed” checkbox. If you send statements, leave this checkbox
cleared.
Assessing finance charges
When you assess finance charges, QuickBooks creates an invoice for each charge.
To assess finance charges:
1 Choose Customers > Assess Finance Charges.
2 Select the customers and jobs for which you want to assess finance charges.
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