How do I enter statement charges ?

Entering charges is the first step in preparing billing statements to send to your customers. You enter the charges directly in each customer's register. You can also transfer reimbursable expenses to a billing statement.

1. Display the appropriate customer register.

Important: If the Customer: Job list shows more than one job for the customer, be sure to select the correct job. QuickBooks maintains a separate register for each job.

2. (Optional) Change the date of the statement charge.

3. In the Item field, enter the item you use to track this kind of charge.

4. Enter the quantity in the Qty field.

5. (Optional) Edit the description that QuickBooks filled in the Description field.

6. If you have more than one A/R account, choose the account you want to use from the Account drop-down list.

7. (Optional) Assign a class to the sale.

8. Click Record to record the charge.

Alternative method

If you wish, you can enter all your statement charges directly into your accounts receivable register instead of the individual customer registers. If you have a few customers, or if you like to see all your statement charges listed in one place, you may prefer the A/R register. Of course, each charge you enter in the A/R register also appears in the appropriate customer register.

How can I use class tracking with finance charge invoices?

	Although finance charge invoices are created without classes, you can add classes to these invoices by choosing either of these options:
	Note: To add classes to finance charge invoices, the class tracking preference must be active.
Option 1
	To review each invoice before adding the class, follow these steps:
	1. From the Customers menu, choose Create Invoices, and then click Previous.
	2. If a finance charge invoice requires a class, manually add the class:
	a. From the drop-down list in the Class field, select the appropriate class.
	b. Click Save & Close.
	c. In the Recording Transaction window, click Yes.
	3. Repeat steps 1 and 2 to add classes to other finance charge invoices.
Option 2
	To create a list of only finance charge invoices, follow these steps:
	1. From the Lists menu, choose Item List.
	2. Select the Fin Chg item name, click Reports, and then select Quick Report.
	3. At the top of the report window, use the drop-down list in the Dates field or the calendar icon feature in the From and To fields to select the appropriate date range.
	4. Double-click a listed invoice to open the Create Invoices window, and then manually add the class:
	a. From the drop-down list in the Class field, select the appropriate class.
	b. Click Save & Close.
	c. In the Recording Transaction window, click Yes.
	5. Repeat step 4 to add classes to other finance charge invoices.
Option 3
	Run a Profit & Loss by Class report and zoom in on the Unclassified amount to show all unclassified transactions, and then edit as necessary.

How do I charge fixed late fees for the customer?

To charge a fixed late fee (rather than a finance charge based on an annual interest rate), create an "other charge" item for the fee, and assign the item to an income account called Late Fee Income. You can then use this item to charge your customers any fixed amount, by using it as a statement charge in the customer's register or as a line item on an invoice.

If you wish, you can also send a reminder statement or reprint an invoice as a late notice. You may want to change the statement or invoice title to "Late Notice." See Customizing invoices or statements.

If there are customer charges past due, why doesn't anything show as past due when I try to assess finance charges?

If statement charges were entered for a customer who has payment terms but the statement was not printed, the due date was never calculated. Due dates will not be calculated for statement charges (transactions entered in the customer’s register) until the statement is printed. Previewing alone will not create the due date.

To resolve this issue, follow one of the solutions below:

Print the statement. The Billed Date and Due Date fields in the customer register will be updated, and the information will carry through when you assess finance charges.

When entering statement charges, click into the Due Date field and manually enter the appropriate date.

Why is the " Assess Finance Charges" window incorrectly displaying the minimum finance charge instead of the percentage-based finance charge?

Finance charges were previously assessed after the Assessment Date displayed in the window, causing the Finance Charge field to incorrectly display the minimum charge.

This situation may occur if, finance charges were assessed for the months of October through December, and then the finance charge invoice for October was deleted.

To resolve this issue:

Delete the outstanding finance charge invoices before reassessing (in the example given above, you would delete the invoices for November and December). To delete invoices:

1. Locate the invoice you want to delete by choosing Create Invoices from the QuickBooks Customers menu (you can then either click Previous until you locate the invoice or choose Find Invoices from the Edit menu).

2. With the correct invoice displayed, choose Delete Invoice from the Edit menu.

3. Click OK to confirm the deletion.

Finance charges were previously assessed after the Assessment Date displayed in the window, causing the Finance Charge field to incorrectly display the minimum charge.

This situation may occur if, finance charges were assessed for the months of October through December, and then the finance charge invoice for October was deleted.

To resolve this issue:

Delete the outstanding finance charge invoices before reassessing (in the example given above, you would delete the invoices for November and December). To delete invoices:

1. Locate the invoice you want to delete by choosing Create Invoices from the QuickBooks Customers menu (you can then either click Previous until you locate the invoice or choose Find Invoices from the Edit menu).

2. With the correct invoice displayed, choose Delete Invoice from the Edit menu.

3. Click OK to confirm the deletion.

How do I Assess finance charges on overdue finance charges?

If you want QuickBooks to Assess finance charges on finance charges, tick the checkbox "Asses Finance Charges on overdue finance charges". QuickBooks calculates interest on both the original overdue amount and on the finance charge amount. If you did not select this checkbox, QuickBooks calculates finance charges only on the original overdue amount.

How QuickBooks calculates finance charges ?

	QuickBooks uses the following equation to calculate finance charges:
	Number of days past due x balance due x rate/365 E.g.
	Suppose that on 1st June you invoice a customer whose terms are Net 30 and the grace period is 10 days.
	If the customer paid on 2nd July :
	QuickBooks does not assess finance charges as it paid within the grace period.
	If the customer has not paid up to 15th July (Assessment date) :
	You can calculate finance charges from due date or Invoice date (From 1st June or 1stJuly ) depending on the preference setting.