Before you can set up finance charges for a contract, you must select the Use Finance Charge check box in Accounts Receivable (File , Company Settings , AR Settings). You may need to do other setup tasks in Accounts Receivable. For more information, see the Accounts Receivable Help topic, "About finance charges."

To set up finance charges for a new contract, do the following:

1. In Contracts, from the File menu, select New Contract.
2. Enter a new contract number and click [OK].
3. In the active window on the left, select the contract, and click the Billing tab in the right side of the window.
4. In the Finance charge area, do one of the following:
   • Select the Exempt from finance charges check box if there are no finance charges for this contract, but you want finance charges to apply to specific contract items. Then on the Billing tab for the contract item, clear the Exempt from finance charges check box and set up either a flat rate or percentage finance charge.
   • Select Percentage to enter a percentage rate to be charged on all past due amounts for this contract.
   • Select Flat rate to charge a flat rate on all past due amounts on this contract.
   • Select Both to charge both a percentage and a flat rate on this contract.

To set up finance charges for a new quick bill job, do the following:

1. In Job Cost, from the Setup menu, select Jobs.
2. Enter your job number and click [OK].
3. Click the Billing Info tab in the right side of the window.
4. In the Finance charge area, do one of the following:
   • Select the Exempt from finance charges check box if there are no finance charges for this contract, but you want finance charges to apply to specific contract items. Then on the Billing tab for the contract item, clear the Exempt from finance charges check box and set up either a flat rate or percentage finance charge.
   • Select Percentage to enter a percentage rate to be charged on all past due amounts for this contract.
   • Select Flat rate to charge a flat rate on all past due amounts on this contract.
   • Select Both to charge both a percentage and a flat rate on this contract.

To set up finance charges for a new customer (when contracts or jobs are not used), do the following:

1. In Accounts Receivable, from the Setup menu, select Customers.
2. Enter your customer number and click [OK].
3. Click the Billing tab in the right side of the window.
4. In the Finance charge area, do one of the following:
   • Select the Exempt from finance charges check box if there are no finance charges for this contract, but you want finance charges to apply to specific contract items. Then on the Billing tab for the contract item, clear the Exempt from finance charges check box and set up either a flat rate or percentage finance charge.
   • Select Percentage to enter a percentage rate to be charged on all past due amounts for this contract.
   • Select Flat rate to charge a flat rate on all past due amounts on this contract.
   • Select Both to charge both a percentage and a flat rate on this contract.

Notes:

If you select the Exempt from finance charge check box, all of the finance charge fields become unavailable.

Finance charges are calculated on past due invoices and added to a customer's balance owing when you run the Generate Finance Charges task and post the entries in Accounts Receivable. Finance charges can be included on an Accounts Receivable statement.