Configure monthly finance charges

Learn how to enable finance charges to be automatically assessed to aged accounts receivable at the end of each month.

To learn more about aged accounts receivable and how monthly finance charges are assessed, see Overview: Understand aged accounts receivable and finance charges.

Permissions:  System Admin          

Configure monthly finance charges

1. Click on your name in the menu bar. Then select Administration. 
2. Under System Admin, select Financial Settings. 
3. For multi-branch practices only. From the Branch dropdown, review or select the branch whose settings you want to update.
4. Carefully read the Monthly Finance Charge details before proceeding. 
5. Click  the Monthly Finance Charge toggle.  
6. To enable the Finance Charge % box and Save button, click OK. 
7. In the Finance Charge % box, enter your practice’s finance charge percent. For example, 1.5.  
   Note: This is the percentage that will be used to calculate finance charges on clients’ aged balances on the last day of every month. 
8. Click  Save. 
9. For multi branch practices only. Repeat steps 3-8, as needed.

IMPORTANT: A Finance Charge checkbox is added to the client Overview and will be automatically selected for ALL clients. You can deselect the checkbox for clients, as needed, to opt them out of receiving a finance charge. 

Edit monthly finance charge 

You can update the branch finance charge percentage, as needed.

1. Click on your name in the menu bar. Then select Administration. 
2. Under System Admin, select Financial Settings. 
3. For multi branch practices only.  From the Branch dropdown, review or select the branch whose settings you want to update.
4. In the Finance Charge %  box, update the finance change percent, as needed. 
5. Click  Save. 
6. For multi-branch practices only. Repeat steps 1-5, as needed.

Deactivate monthly finance charge 

If for any reason your practice decides it no longer wants to assess a monthly finance charge on aged accounts receivable, you can deactivate it.  If you deactivate the Monthly Finance Charge, the following will happen: 

• On the client record, the  Finance Charge checkbox will be removed from the  client Overview. 
• Finance charges will no longer automatically calculate at the end of the month. 
  Note: Finance charges that have already been applied will not be removed. 
• When Monthly Finance Charge is deactivated, you will need to manually calculate any finance charges then add them from the client’s Financial Activity tab using balance adjustments. 

1. Click on your name in the menu bar. Then select Administration. 
2. Under System Admin, select Financial Settings. 
3. For multi branch practices only. From the Branch dropdown, review or select the branch whose settings you want to update. 
4. Click the Monthly Finance Charge toggle off. 
5. Click OK to confirm.  
6. For multi branch practices only. Repeat steps 1-5, as needed.

You can always reactivate the Monthly Finance Charge if your practice chooses to do so. Clients' Finance Charge selection on their Overview will be remembered.