Rice Lake TransAct 3.5 - Manual (Page 146)

Accounting Statements/Posting (TransAct Plus)
Version 3.5 147
To enter a date, use the keyboard or click the calendar button to the right of the date option box
Grace Period
Payments can be granted a Grace Period . A grace period is the period of time a company may give their
customers to pay the previous bill. The Grace Period applies only to payments. Payments made within
the grace period will be applied to the previous balance. Use the up/down arrows to increase or
decrease the number of days granted for the grace period including non business days (i.e. weekends).
NOTE: The grace period must be entered in calendar days - not business days. If the grace period
includes weekends, make sure to include those calendar days in the grace period.
In order to use a grace period, statements must be processed after the Grace Period . Figure 131 shows
a Grace Period of three days. Since payments are accepted for three days past the statement date,
processing cannot occur until after the grace period. For this example, statement processing should
occur after 5/3/02.
Options
Apply Finance Charge
To Apply Finance Charges , click the mouse to place an ‘x’ in the Apply Finance Charge box. When a
default Monthly Finance Charge has been entered in the Setup and Misc Rates table or Discounts and
Account Flags table, a finance charge will be applied to any unpaid previous balance for all accounts.
A payment made during the billing period will be applied to the previous balance. The finance change
is applied to the remaining previous balance not covered by payments.
Example: D&D Disposal Co. has a previous balance of $1,000. During the current billing period
they made a payment for $800. If a 1.5% monthly finance charge has been setup,
TransAct with Accounting calculates the finance charge to be added as follows:
1. $1,000 - $800 = $200
2. $200
X 0.015 = $3
The current balance is calculated 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.
NOTE: Use the Setup and Miscellaneous Rates table to setup a default finance charge. Use the
Discounts and Account Flags table to apply finance charges to individual accounts. These
tables are explained in detail earlier in this chapter.