Late Payment fees/Finance Charge Memo:- We can automate the late payment fees on the customer invoices. Navision has the option of setting up terms for the late payment fees. Let us first setup the Finance Charge terms. Navigate to the finance charge terms to the following path. This finance charge term will be mapped to customer.
What is Late payment fees?
Late payment fees are the interest or charges which are debit to customers in case the payment for invoice is not received within due date.
Setup Late Payment fees/Finance Charge Terms
Interest rate:- Interest in percentage which is charge to the outstanding invoices.
Interest Calculation Method:- Average Daily balance, calculate the interest charge based on daily closing balance.
Make a sales invoice for the period for which due date already has passed.
Customer ledger entry
Create a Finance charge Memo
New Finance charge memo is created along with the late payment fees. System calculates the value of late payment fees based on finance charge terms which we defined in the previous step.
Issue the Finance charge memo
Posted Finance charge memo
