Thought a simple "How-To" was in order! Let's simplify the process of managing finance charges on overdue debts in SyteLine. Whether you're dealing with a handful of late payments or managing a large volume, here's a quick guide to get you started with the essentials.
1. Setting Up Finance Charges
First things first, head over to your Accounts Receivable Parameters form. This is where you'll set the foundation for your finance charges. You'll need to specify the annual finance rate—think of this as the interest rate you'll apply to overdue amounts. For example, if you're charging 1.5% per month, you'd set this to 18.00% annually.
Next, decide on a minimum charge. This ensures that even small overdue amounts incur a fee, which can be important for covering administrative costs. If you want this minimum to always apply, check the Charge Minimum box; otherwise, leave it unchecked if you'd prefer more flexibility.
One more thing: consider whether you want to compound charges—this means adding additional finance charges on top of already overdue finance charges. This can be a powerful tool, but it's not for everyone, so choose what fits your business model best.
2. Customizing Charges for Each Customer
Not all customers are created equal, so SyteLine lets you customize how you apply finance charges on a per-customer basis. In the Customers form, there's a checkbox in the Credit area where you can decide if finance charges should apply to a particular customer. This is also where you'll see the Last Finance Charge Date—a handy field that updates automatically whenever you post a finance charge.
3. Generating and Posting Charges
When it comes time to actually apply these charges, the A/R Finance Charge Generation form is your go-to tool. It allows you to generate charges for a specific range of customers. After generating, take a moment to review everything in the Finance Charges form. Here, you can tweak any charges or even create new ones manually if needed.
Once you're satisfied, it's time to post the charges. Use the Finance Charge Posting form to finalize everything. A quick tip: always print and review the charges before committing them to the A/R Dist journal. This ensures everything is accurate and avoids any unnecessary headaches later.
4. Adding Administrative Fees
If you want to tack on an administrative fee—maybe to cover the costs of managing these overdue accounts—you can easily do so. Just head to the Finance Charges form and add a separate record to specify the amount, date, and accounts to apply this fee. When posted, it'll show up as a finance charge with a description like "Administrative Fee." It's a straightforward way to recoup some of the costs associated with chasing down payments.
5. Handling Dunning Fees and Write-Offs
You might also be dealing with dunning fees, especially if you're using the dunning process to remind customers of overdue payments. These fees can be set up separately and will be added to the total finance charges. On the flip side, if you need to offset or write off charges, SyteLine gives you tools for that too. For instance, you can create a negative finance charge to cancel out a previous charge or reapply customer payments to clear outstanding balances.
Next Steps
This overview should give you a solid start in managing finance charges within SyteLine. While we’ve covered the essentials to get you up and running, I've also put together a complimentary guide that details the entire process. Grab yours below!
Keep looking Inside the Glass Box for more clear paths to success. See you in the next issue!
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