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Invoice - Finance Charges

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Finance Charge Calculation Examples
To help explain how finance charges are calculated by Avionté, several examples are provided below. These examples apply to version 13.2 and beyond.
 
 
Note: Finance charges will only show on the Statement Letter and AR Aging Report. Finance charges are NOT shown on an invoice.
 
 

 

Example 5: Finance charges setup at the beginning; corrections made; retroactive charges apply

Preconditions

Customer with invoices overdue. 

Table 16. Retroactive Charges Apply
Invoice numberDue dateInvoice amountBill amountBalance amountSales taxDiscount amountTotal finance charges
101 1/1/2013 $100.00 $100.00 $96.12 0 0 $6.12
101-R1 1/1/2013 $60.00 $60.00 $60.00 0 0 0
101-R2 1/1/2013 - $10.00 - $10.00 $0.00 0 0 0

Table 17. Finance charges
Invoice numberMonth IDFinance charge dateChargeable amountFinance charge amountTotal chargeable amount dueCharge type
101 1 1/2/2013 $100.00 $2.00 $102.00 Retroactive
101 2 2/2/2013 $102.00 $2.04 $104.04 Retroactive
101 3 3/2/2013 $104.04 $2.08 $106.12 Retroactive

 

Results


Table 18. Finance charges assessed after first invoice correction
Invoice numberMonth IDFinance charge dateChargeable amountFinance charge amountTotal chargeable amount dueCharge typeFinance charge removed?
101 1 1/2/2013 $100.00 $2.00 $102.00 Retroactive Yes
101 2 2/2/2013 $102.00 $2.04 $104.04 Retroactive Yes
101 3 3/2/2013 $104.40 $2.08 $106.12 Retroactive Yes
101 1 1/2/2013 $100.00 - $2.00 $102.00 Removal No
101 2 2/2/2013 $102.00 - $2.04 $104.04 Removal No
101 3 3/2/2013 $104.04 - $2.08 $106.12 Removal No
101 1 1/2/2013 $160.00 $3.20 $163.20 Correction No
101 2 2/2/2013 $163.20 $3.26 $166.46 Correction No
101 3 3/2/2013 $166.46 $3.33 $169.79 Correction No

Table 19. Finance charges assessed after the second invoice correction
Invoice numberMonth IDFinance charge dateChargeable amountFinance charge amountTotal chargeable amount dueCharge typeFinance charge removed?
101 1 1/2/2013 $100.00 $2.00 $102.00 Retroactive Yes
101 2 2/2/2013 $102.00 $2.04 $104.04 Retroactive Yes
101 3 3/2/2013 $104.04 $2.08 $106.12 Retroactive Yes
101 1 1/2/2013 $100.00 - $2.00 $102.00 Removal No
101 2 2/2/2013 $102.00 - $2.04 $104.04 Removal No
101 3 3/2/2013 $104.04 - $2.08 $106.12 Removal No
101 1 1/2/2013 $160.00 $3.20 $163.20 Correction Yes
101 2 2/2/2013 $163.20 $3.26 $166.46 Correction Yes
101 3 3/2/2013 $166.46 $3.33 $169.79 Correction Yes
101 1 1/2/2013 $160.00 - $3.20 $163.20 Removal No
101 2 2/2/2013 $163.20 - $3.26 $166.46 Removal No
101 3 3/2/2013 $166.46 - $3.33 $169.79 Removal No
101 1 1/2/2013 $150.00 $3.00 $153.00 Correction No
101 2 2/2/2013 $153.00 $3.06 $156.06 Correction No
101 3 3/2/2013 $156.06 $3.12 $159.18 Correction No

Table 20. Invoices updated as follows
Invoice numberDue dateInvoice amountBill amountBalance amountSales taxDiscount amountTotal finance charges
101 1/1/2013 $100.00 $100.00 $99.18 0 0 $9.18
101-R1 1/1/2013 $60.00 $60.00 $60.00 0 0 0
101-R2 1/1/2013 - $10.00 - $10.00 $0.00 0 0 0

 

Example 6: Finance charges with a gap; payment made; corrections made; retroactive charges apply

Preconditions

Customer with an overdue invoice, with a payment made of $50.00.


Table 21. Invoices updated as follows
Invoice numberDue dateInvoice amountBill amountBalance amountSales taxDiscount amountTotal finance charges
101 1/1/2013 $100.00 $100.00 $96.12 0 0 $6.12
101-R1 1/1/2013 $25.00 $25.00 $25.00 0 0 0

Table 22. Finance charges
Invoice numberMonth IDFinance charge dateChargeable amountFinance charge amountTotal chargeable amount dueCharge type
101 1 1/2/2013 $100.00 $2.00 $102.00 Regular
101 2 2/2/2013 $102.00 $2.04 $104.04 Regular
101 3 3/2/2013 $104.04 $2.08 $106.12 Regular
101 4 5/2/2013 $56.12 $1.12 $57.24 Regular
101 5 6/2/2013 $57.24 $1.14 $58.38 Regular

 

Results


Table 23. Finance charges assessed after the second invoice correction
Invoice numberMonth IDFinance charge dateChargeable amountFinance charge amountTotal chargeable amount dueCharge typeFinance charge removed?
101 1 1/2/2013 $100.00 $2.00 $102.00 Regular Yes
101 2 2/2/2013 $102.00 $2.04 $104.04 Regular Yes
101 3 3/2/2013 $104.04 $2.08 $106.12 Regular Yes
101 4 5/2/2013 $56.12 $1.12 $57.24 Regular Yes
101 5 6/2/2013 $57.24 $1.14 $58.38 Regular Yes
101 6 7/2/2013 $58.38 $1.17 $59.55 Retroactive Yes
101 7 8/2/2013 $59.55 $1.19 $60.74 Retroactive Yes
101 1 1/2/2013 $100.00 - $2.00 $102.00 Removal No
101 2 2/2/2013 $102.00 - $2.04 $104.04 Removal No
101 3 3/2/2013 $104.04 - $2.08 $106.12 Removal No
101 4 5/2/2013 $56.12 - $1.12 $57.24 Removal No
101 5 6/2/2013 $57.24 - $1.14 $58.38 Removal No
101 6 7/2/2013 $58.38 - $1.17 $59.55 Removal No
101 7 8/2/2013 $59.55 - $1.19 $60.74 Removal No
101 1 1/2/2013 $125.00 $2.50 $$127.50 Correction No
101 2 2/2/2013 $127.50 $2.55 $130.05 Correction No
101 3 3/2/2013 $130.05 $2.60 $132.65 Correction No
101 4 5/2/2013 $82.65 $1.65 $84.30 Correction No
101 5 6/2/2013 $84.30 $1.68 $85.98 Correction No
101 6 7/2/2013 $85.98 $1.72 $87.70 Correction No
101 7 8/2/2013 $87.70 $1.75 $89.45 Correction No

Table 24. Invoices updated as follows
Invoice numberDue dateInvoice amountBill amountBalance amountSales taxDiscount amountTotal finance charges
101 1/1/2013 $100.00 $100.00 $64.45 0 0 $14.45
101-R1 1/1/2013 $25.00 $25.00 $25.00 0 0 0

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