Functions: Customers
Manage finance charges
To do these business operations... Use these functions
21st Century Accounting uses the Level Method to calculate finance charges for all open item, regular balance forward, and fixed payment customers. It also uses the Level Method for revolving customers unless you specify the Average Daily Balance Method for revolving customers.

Assign customer types (open item, balance forward, revolving, or fixed payment), billing cycles, and finance charges

  1. The customer type (in conjunction with Finance Charge Configuration) determines how finance charges are applied. In 21st Century Accounting, customers may be one of four types:

    Open item. System uses Level method to calculate FCs for all Open Item type customers.

    Balance forward. System uses Level method to calculate FCs for all Balance Forward type customers.

    Revolving. You choose either Level method OR Average daily balance (ADB) method used to calculate FCs for all Revolving type customers. The system uses ADB method if you check "Use ADB method (revolving customers only)" in Configure/Finance Charges.

    Fixed payment. System uses Level method used to calculate FCs for all Fixed Payment type customers.

  2. Assign a billing cycle to each customer from BCs you set up in Receivables/Configure/Billing Cycles.

  3. Check the "Apply finance charges" box for customers who will be charged FCs.

  4. Set up fixed payments and revolving payment minimums and rates for Fixed and Revolving type customers.
Receivables
Configure
Customers
Then configure finance charge methods (level or average daily balance)
  1. In Configure/Finance Charges, set up Level Method minimum balance and rates for customers to whom this method will apply, if any.

  2. In Configure/Finance Charges, if you want to use Average Daily Balance method for Revolving-type customers, check the "Use ADB method (revolving customers only)" box and set up the minimum balance and rate.
Receivables
Configure
Finance Charges
During the course of the business cycle, enter transactions (charges, receipts, and adjustments) for all customers in each billing cycle. Sales
Invoices
Invoice Updates

Bank Accounts
Deposits

You then use the Billing Cycle Checklist to finish processing customers and complete the cycle. Use the Billing Cycle Checklist to
  • Apply finance charges
  • Apply recurring charges
  • Print statements
  • Age/close cycle
The checklist helps you remember to do all the processing in the recommended sequence and prevents you from doing any of the steps more than once per cycle. 		Receivables
  Billing Cycle Checklist