Finance charges are amounts added to an outstanding balance as a penalty for late payment to one of your suppliers. If your supplier has added a finance charge to your account, you can enter the amount in the Pay Suppliers window.
Before you can record finance charges, you need to specify an account for tracking the charges. Go to the Setup menu, choose Linked Accounts and then Purchases Ledger Accounts. Select the I pay charges for late payment option and select an expense account to record the late payment charges.
Although your AccountEdge software does not track the history of finance charges, you can perform an account inquiry (using Find Transactions) on the finance charge linked account to view the amounts paid.
If you enter a finance charge in the Pay Suppliers window, two transactions are recorded:
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the full supplier payment, including the finance charge, is recorded in the disbursements journal, and
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Therefore, if you want to delete a finance charge payment, you must delete both transactions. If only one entry is deleted, the Creditors Reconciliation Summary report may show an out-of-balance amount equal to the finance charge. When you delete one of the entries, you will be reminded to delete the other entry for the finance charge. Note that the warning will appear even though you may have already deleted the corresponding payment.
