Rice Lake TransAct 2.0 - Manual (Page 94)

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Accounting
Note: Enter the grace period in calendar days, not business days. If the grace
period includes weekends, be certain to include those calendar days in the
grace period.
Click on the Apply Finance Charge box to apply a monthly finance charge
to an unpaid previous balance.
TransAct applies any payment made during the billing period to the
previous balance, then applies the finance change to the remaining previous
balance that was not covered by payments.
Example: D&D Disposal Co. has a previous balance of $1,000.00.
During the current billing period they made a payment for $800.00.
If you set up a 1.5% Monthly Finance Charge, TransAct calculates
the finance charge to add as follows:
1. $1,000 – $800 = $200
2. $200
×
0.015 = $3
TransAct calculates the current balance by adding the unpaid
previous balance, finance charge, and new charges. We will use
$300 of new charges during the billing period to finish the example.
3. $200 + $3 + 300 = $503.
Set up monthly finance charges in the Discounts and the Miscellaneous
Rates tables. The Discounts table applies special rates (including finance
charges) to individual customer accounts. The Miscellaneous Rates table
applies rates to all customer accounts in the system. These tables are
explained in detail later in this chapter.
By default, TransAct does not print a statement for accounts with a zero
balance. If you need to print statements for accounts with zero balances,
click to place an X in the Print Zero Balance Statements box.
You can choose to grant a Grace Period to Payments to allow companies to
pay for a previous month’s bill. The Grace Period applies only to payments.
Payments made within the grace period are applied to the current statement.
Use the up/down arrows to increase or decrease the number of days granted
for the grace period.