The current method of how the finance charge is calculated charges from the due date or transaction date (depending on what is selected in Setup > Accounting > Finance Charge Preferences > Assess From radio buttons) once the customer goes over the grace period.
The grace period is not subtracted from the age of invoices in the computation below of finance charges:
(Annual Rate/365) x age of invoices x amount of outstanding invoice being assessed
Grace period is only used to indicate when to charge a finance charge.
Finance charge will only be assessed after the grace period but, once it does, the computation is for the total overdue period which starts from either the due date or transaction date.
Note: There is an Enhancement Request filed asking for another method of computation which considers the grace period. Enhancement 38664 - Assess Finance Charges - Grace Period is not factored into the calculated charges. Over charges customers.
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