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Finance Charge
Billings are like miscellaneous billings
They don’t reference job numbers
or tasks, so don’t affect job totals. Instead, they
are used to specifically bill a late-paying client for
finance or service charges. These invoices look like
regular invoices, and aren’t handled differently by
Clients & Profits. They post to the General Ledger
just like miscellaneous billings. The only difference is
they have the “finance charge” billing
type.
To add a finance charge billing
1 Choose Edit > Add New Invoice > Finance
Charge.
The Add Finance Charge window opens.
2 Follow the remaining steps to continue adding a
finance charge billing.
Client number Every
invoice is billed to only one client, and any client in
your database can be used on an invoice. This client is
the one who will eventually pay for the invoice. Tabbing
past the client number displays its name, payment terms,
and other account information.
3 Enter the invoice date, due date, and accounting
period.
Aging reports use the invoice date to calculate an unpaid
invoice’s age (i.e., current, 30-days, 60-days,
etc.).
The invoice date and the accounting period can be
different, for flexibility. This means an invoice can be
dated in this month, but the invoice can be posted to
next month’s financial period.
5 Enter the client’s PO number, terms, and
charge number.
Debit account The
debit G/L number is copied from Preferences and indicates
which receivable account will be updated when the invoice
is posted. Posting creates one journal entry that debits
an Accounts Receivable account for the invoice’s
total amount.
Notes The finance charges you’re billing can
be fully explained in the invoice notes. These notes,
which appear near the top of the printed invoice (above
the billing amounts), can summarize what’s being
billed on this invoice.
Description The description field appears in the
body of the invoice. Each invoice line item should have a
clear, concise description that explains what you’re
billing. You can enter anything you need to describe the
line item.
The line item’s description becomes the credit
journal entry’s description when the invoice is
posted. You’ll see this description on audit trails
and journals.
Finance charge amount The finance charge amount
can be calculated on the Client
Account Aging or
Client Statement, then entered here. (Finance charges
aren’t automatically billed.)
cGL Each line item can have a billing amount and
credit G/L number, or cGL. The cGL account is entered
automatically from preferences, but can be changed.
If you don’t know which credit G/L account to use,
leave it blank then choose Chart of Accounts from the
Lookup List. Your chart
of accounts
appears, showing your G/L numbers. To select an account,
double-click on the account name. The account number will
be entered onto the line item automatically.
11 Click Save.
Clicking the Save button saves this invoice’s line
item and billing amounts.
The invoice is saved, but not posted. You can add
additional line items, or change the invoice’s
billing amounts until the invoice is posted.
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Finance charges.
While finance charges are calculated on aging
reports, they aren’t automatically billed
to clients. Instead, separate finance charge
invoices are added then printed for the client.
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