How to add Finance Charge for Overdue Invoices – Rapid Works Knowledge Center

Finance charges can be applied to overdue invoices in Rapid Apps ERP based on the criteria you define. Follow the steps below to configure and apply these charges

Prerequisite: Enable Finance Charges in Company Settings

Before assessing finance charges for the first time, the company‑level finance charge settings must be configured. These settings determine whether finance charges are allowed and define the default rules the system will use when calculating them. Make sure this setup is completed prior to running your first finance charge assessment

Navigate to Company -> My Company
Go to the Advance Defaults Tab
Ensure Allow Late Charges is checked off
Enter in your Monthly percentage rate

How to Assess Charges

Open the Finance Charge Tool

1. Go to Accounting.
2. Select Finance Charge.

3. Click on Assess New Charges

Understanding the Finance Charge Fields

When the Finance Charge dialog opens, each field controls how charges are calculated:
• Charge On = The date through which finance charges will be assessed.

• Monthly Interest = The percentage rate you want to apply to overdue invoices.

• Min Invoice Balance = Finance charges will not be applied to invoices with a balance below this amount.
Example: If set to 0.01, all overdue invoices above one cent (and past the grace period) will be eligible.

• Min Charge Greater Than = Any calculated finance charge below this amount will be ignored.

• Past Due By (Days) = The grace period. Only invoices overdue by more than this number of days will be considered.

Example Scenario

Using the settings shown in the example:
•     Charges are assessed as of 01/30/2026
•     A 1.5% monthly interest rate is applied.
•     Only invoices over 60 days past due and with a balance greater than $500 will be included.
•     If the calculated finance charge is less than $10, it will not be applied because the minimum charge threshold is set to greater than $10.

Once all parameters are configured to your preference select the "Assess Charges" button to generate the applicable finance charges.

Note: Please note that finance charges will be assessed on every past due invoice based on the parameters.

Exempt Customers

Customers can be designated as exempt from finance charges within their customer record. To update this setting, navigate to Sales -> Customer, open the customer profile, and enable the Exempt from Finance Charge checkbox.