The Late Charges button on the Trade Customer Receivables menu advances you to the Trade A/R Late Charges menu. You use this menu to compile and add late charges to a customer’s account or to remove late charges that have been applied to an account. The box on the bottom-right side of the menu displays the current APR percentage and monthly rate percentage set in the Operating Parameters of the Accounting System Setup.
The late charges are calculated based on the annual percentage rate you specify in the Acct’s Rec Finance Charge field on the Operating Parameters screen in the Accounting Setup. The system takes the balance over 30 days and multiplies it by the APR specified divided by 12 (APR¸12). The system calculates the monthly percentage. For example, if you set the finance charge to 12%, the system calculates the late charge using 1% (12¸12=1). If you set the finance charge to 18%, the system calculates the late charge using 1.5% (18¸12=1.5).
To access this menu:
Step 1. From the Dealership Accounting main menu, select Trade Receivables. The Trade Customer Receivables menu will open.
Step 2. From the Trade Customer Receivables menu, click Late Charges to open the Trade A/R Late Charges menu.