How to add Finance Charge for Overdue Invoices

These are the steps to follow in order to apply finance charge to overdue invoices in Rapid Apps ERP:

1. Click Accounting and then select Finance charge:

2. In the dialogue box, the values have the following meanings:

Charge on: The date to which charges will be assed to.

Monthly interest: The finance charge (in percentage terms) that you would like to apply to overdue invoices

Min Invoice Balance: Do not apply finance charges on invoices less than the amount set here. If you set this to 0.01, for example, finance charges will be applied to all outstanding invoices due past the grace period you set in the Past Due By (days) field.

Min Charge Greater Than: Do not apply finance charges that when calculated come up to less than the amount set in this box.

Past due by (Days): This is where you set the grace period.

In the example above, charges will be assessed as of November 15, 2021. A monthly interest of 1.5% will charged on all invoices whose past due date is over 60 days and whose value exceeds 500 dollars (i.e. any invoices for less than 500 dollars will be ignored). If the finance charge calculated is less than 10 dollars, it will be dropped (as minimum charge is set to be greater than 10 dollars).