Finance charges are amounts added to an outstanding balance as a penalty for late payment. If your supplier has added a finance charge to your account, you can record the charge in the Pay Bills window.
Setting up finance charges
Before you can record finance charges, you need to select an account for tracking late payment charges. Go to the Setup menu, choose Linked Accounts, and then Purchases Accounts. Select the I pay charges for late payment option and select an expense account to record the late payment charges.
Recording finance charges
When you pay the finance charge, type the amount in the Finance Charge field of the Pay Bills window.
Although the history of finance charges is not tracked, you can perform an account inquiry (using Find Transactions) on the finance charge linked account to view the amounts paid.
Deleting finance charges
If you enter a finance charge in the Pay Bills window, two transactions are recorded for the finance charge—a bill in the purchases journal and a payment in the disbursements journal.
To delete a finance charge, you must first delete the finance charge payment and then delete the finance charge bill.