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    Fossums's Avatar
    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's Avatar
    joypulv Posts: 21,593, Reputation: 2941
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    #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's Avatar
    ebaines Posts: 12,132, Reputation: 1307
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    #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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