Note : Before you proceed with the following instructions, back up the database. If your organization integrates multiple Blackbaud products, refer to the Additional Requirements section of the backup article.
- Set up billing items and client records to be subject to finance charges:
- Define a finance charge billing item in Configuration.
- Mark all applicable products and billing items as subject to finance charges:
- In Configuration, click Products and Billing Items.
- Open a product or billing item that is subject to finance charges and click Open.
- On the Item tab, mark the Item is subject to finance charge and late charges checkbox.
- Click OK.
- Repeat for all product and billing item subject to finance charges.
- Mark all applicable records (the person responsible for these charges) as subject to finance charges:
- In Records, open a record subject to finance charges.
- Select the Client 2 tab.
- Mark the Assess finance charges on balances due from this client box.
- Select File, Save from the menu bar.
- Repeat for all records subject to finance charges.
- Calculating finance charges
Note: Once this process is complete, you cannot globally reverse or delete the transactions added to the clientt's record. You must manually delete the transactions or restore to a backup. For more information, refer to How to troubleshoot calculating finance charges (BB92223)
- Open Accounts Receivable Processing, click Calculate Finance/Late Charges.
- On the Finance/Late Charge tab, select the method to use to calculate finance charges from the Calculate: drop-down menu.
- Late charge:
Enter a late charge amount for any charges that meet the criteria. For example, if you enter a date of 06/01/10 in calculate finance charges as of, any charges that are overdue by that date, will be subject to the late charge. That late charge will be the same for each record regardless of how overdue the charges are.
- Finance charges using the Transaction Past Due Balance method:
Finance charges are determined by calculating the age of each transaction and then calculating a finance charge (the older the charge, the higher the finance charge). After calculating for each individual transaction, the charges are summed to arrive at total finance charge.
- Finance charges using the Overall Past Due Balance method:
Finance charges are based on the account's overall past due balance.
- Note: Fees not subject to finance charges are excluded, but all payments are included.
- Finance charges using the Loan Balance method:
This method includes any future transactions subject to a finance charge, whether automatically generated or manually added. Charges that are scheduled, but not yet generated, are not included in this calculation.
- Finance charges using the Past Due Plus Loan Balance method:
Finance charge based on past due balances for charges and for a loan balance (for which payment is expected in the future). The finance charge is generated by adding the results of the Overall Past Due Balance and Loan Balance calculations.
- Late charge:
- In the Annual finance charge percentage field, enter the annual interest rate for the finance charge.
- In the Minimum finance charge field, enter the smallest charge to apply to an overdue balance. When the overdue balance is calculated, for all
balances exceeding the minimum balance to charge, Accounts Receivable applies either the minimum finance charge or the percentage rate, whichever is greater.
- In the Calculate finance charges as of field, enter the ending date for which to calculate finance charges.
Note: For methods other than the transaction past due method additional fields appear. Enter the last date for which to calculate finance charges, the calculation frequency, and the unit of measure. For example, to calculate finance charges once a month through December 31, 2004, enter Calculate finance charges as of 12/31/04 based on a period of 1 month.
- In the Minimum balance required for charge field, enter the smallest balance for which to charge finance charges. If the amount of the finance charge that would have been calculated is less than the Minimum balance required for charge, the charge will not generate.
Note: For methods other than the transaction past due method, the Monthly finance charge displays for informational purposes only and shows the annual percentage rate divided by 12 months.
- In the Days past due to be eligible for charge field, enter the number of days a payment must be late to incur finance charges.
Note: This field is not available if using the Loan Balance method
- To reduce balance by unapplied payments and credits, mark Reduce balance by unapplied payments and credits. This prevents calculating late fees for charges that have been paid.
Note: This field is only available if using the transaction past due method
- To reduce balance by ungenerated financial aid, mark Reduce balance by ungenerated financial aid.
- To reduce balance by ungenerated advance deposits, mark Reduce balance by ungenerated advance deposits.
- Under Finance Charge:
- Enter the Transaction Date, Post Status, Post Date, and Due Date for the finance charge(s).
- In the Item/Description field, select a finance charge billing item.
- In the Comment field, you can enter notes or special circumstances regarding this finance charge.
- Mark the Preview results before creating transactions or Print control report checkboxes if appropriate.
- On the Filters tab, select criteria to determine the records for which to calculate finance charges.
- On the GL Distribution tab, the General Ledger distribution specified on the finance charge billing item in Configuration with default into the distribution fields.
- Click Pre-Generation Report to preview a report of the calculations. Verify the amount and students to be charged.
- When you are ready to generate the finance charges, click Calculate Now.
- If the Preview results before creating transactions checkbox was marked on the Criteria tab, a preview screen appears before the calculation is added to the student records, listing each client to receive a finance charge. If a client appears who should not receive a finance charge, unmark the Generate? checkbox next to the client's name. This allows you to excuse a client any given month from receiving a charge due to individual circumstances (and not have to change the individual record for that month.)
- When ready, click Create now.
- If the Create control report checkbox was marked on the Criteria tab, a control report appears showing the finance charges that generated.