How to Assess Finance Charges in QuickBooks Desktop?

quickbooks finance charge

Assessing finance charges is a regular part of Accounts Receivable workflow in QuickBooks. You assess “finance charges” when you have late fees, or there are some unpaid balances. In the below, we will discuss how to assess finance charges in QuickBooks Desktop.

Before you start the assessing process, Need to set your “Finance Charges Preferences” in QuickBooks

  1. Go to QuickBooks Company file and login as Admin
  2. Navigate to “Edit” menu, and choose “Preferences.”
  3. Choose the “Finance Charge” and go to “company preference” tab
  4. Enter the “Annual Interest Rate,” “Minimum Finance Charge,” & “Grace Period (days).”
  5. In the “Finance charge account” dropdown, choose the account you used to track income from the finance charges.
  6. (optional)In case, you do not want QuickBooks to assess the finance charges on overdue finances charges; you can clear the “Assess overdue finance charges” checkbox.

    Note: Then laws differ on whether you charge interest on overdue interest payments. You need to confirm with the appropriate concerned jurisdiction that you follow that jurisdiction’s lending laws.

  7. Choose the appropriate “radio button” for “due date” or “invoice/billed date to show when you require QuickBooks to calculate finance charges.
  8.  (optional) Checkmark the “Mark finance charge invoices as –‘To are printed’,” if you want to print all your finance charge invoices at one go.
  9. Choose OK

Also Read: How To Use QuickBooks Connection Diagnostic Tool? 


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How to Assess Finance Charge in QuickBooks Desktop?

  1. Navigate to the Customers menu.
  2. Select “Assess Finance Charges.
  3. Select the appropriate A/R account.

Note: QuickBooks displays the A/R account field “only” when your COA contains has more than on Accounts Receivable.

  1. Now set the “Assessment date.
  2. Choose “the customers & jobs” you want to assess finance charges for.
  3. Choose “Assess charges.”

Note: When you assess “finance charges,” QB makes a “Finance charge Invoice” per customer. You have the choice to either print it or leave it cleared to be added in your further statements.

You can also prevent finance charges to be assessed on an “Invoice. There are two methods for this if you desire an invoice to be excluded from a customer’s balance while assessing finance charges. The two options are:

  • Create a job that is not a part of “finance ”
  • Create a second “Accounts Receivable” that can be excluded from “finance charges.

In case, any of the above steps are unclear, and you are unsure how to proceed about it, it is highly advisable to talk to a technical expert at QuickBooks Desktop Customer Support Number and solve the issue instantly and to avoid any discrepancy.

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