Fossums Posts: 1, Reputation: 1 New Member #1 Jan 3, 2017, 02:34 PM
How can I double check automated finance charges?
This is more a mathematical question, but a customer is claiming QB is figuring the FC wrong.
How can I double check these? I am usually pretty good at math but must be missing something. I am guessing it has something to do with the day I assess the charge but I don't know.
Net 10, 1.5%, 31 grace period, invoice/billed date
EXP. 1)
3/15 - \$577.50, 3/18 - \$4286.84
Finance Charge assessed 4/28 for \$99.21

I can not figure how they came up with \$99.21 to prove to my customer this is correct. Please Advise
 joypulv Posts: 21,593, Reputation: 2941 current pert #2 Jan 4, 2017, 04:20 AM
I would guess that the charge is computed on the daily balance, not just new charges. Not enough info. Regardless, this is a question for the bank.
 ebaines Posts: 12,132, Reputation: 1307 Expert #3 Jan 4, 2017, 02:10 PM
It seems that interest charges are billed from the purchase date, not starting with net 10 days. And the rate is 1.5% per month (i.e. 18% per year).

\$577.50 x 18%/yr x 44 days/365 days/yr = \$12.53
\$4286.84 x 18%/yr x 34 days/365 days/yr = \$86.68
Total = \$99.21

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