Calculate Finance Charge/Aging overview
This topic is under construction. It may be incomplete and is subject to change.
What is Finance Charge/Aging?
Finance charges are fees charged for the use of credit or the extension of credit and may be flat fees or percentages of the borrowed amount. Finance charges are calculated in AIMsi by multiplying the average daily balance by the periodic rate on the customer's account. The average daily balance includes all invoices since the last time finance charges and aging were calculated except the following.
- finance charge invoices,
- invoices with a zero term, and
- invoices that have exceeded their term.
Once calculated, an invoice is saved to the customer account with the amount of the finance charge as the balance.
Calculate Finance Charge/Aging is also used to calculate aging on customer accounts that are set up with a minimum payment due for outstanding balances rather than the full outstanding invoice balance.
When you start the Calculate Finance Charge/Aging process, a pop-up displays indicating the last time finance charges were calculated as well as the number of days that will be used to complete this calculation. This is based on the system variable discussed below.
Note: Run Calculate Finance Charge/Aging once a month, prior to printing statements.
System variables
AIMsi uses system variables to determine how information is used and displayed. The Calculate Finance Charge/Aging function in AIMsi has three specific system variables that you may choose to set up: LastFinanceCharge, LastFinanceChargePeriod, and FinChrgType.
AIMsi is installed with defaults for all system variables, but it is recommended that you review your variables on the Application Variables window to be sure they are set up in a way that works best for your business.
PDF Downloads