Rice Lake TransAct 3.5 User 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.