Service Charges

Start Date

First day of the service charge period. Auto-populated based on the store's last service charge date:

Changing the Start Date automatically recalculates the End Date based on the store's statement cycle.

End Date

Last day of the service charge period. Auto-calculated from the Start Date using the store's statement period length (e.g. monthly). Can be manually adjusted.

Posting Store

The store where the service charge transactions will be posted. Defaults to the current store. Changing the store refreshes the Start and End dates based on that store's last service charge history and statement cycle.

Account

The GL revenue account to credit for service charge income (e.g. "Service Charge Income" or "Interest Revenue"). Auto-populated from the store's configured charge account. If no default exists, you must select one. After posting, this account is saved as the store's default charge account for future runs.

The calculation processes every active customer who has a non-zero Service Charge rate set in their Customer Master.

Daily Interest Formula

For each overdue invoice, the system calculates interest on a per-day basis across the service charge period:

What Transactions Are Included

The system selects transactions where:
• The transaction is active and posted.
• The transaction has a non-zero card amount (customer balance).
• The due date is on or before the End Date (i.e. the invoice was due within the period).
• The paid date is null (still unpaid) or falls on or after the Start Date (paid during or after the period).

What Is Excluded

• Credit transactions (negative card amounts) — unallocated payments/returns are not charged interest.
• Invoices paid on time — if the paid date is on or before the due date, no interest accrues.
• Customers with zero service charge rate — skipped entirely.
• Days before the transaction is posted — interest only accrues from the posting date forward.
• Days before the due date — interest only accrues once the invoice is past due.

Partial Payment Handling

The system tracks payment allocations day-by-day. If a customer makes a partial payment during the period, the outstanding balance is reduced from the payment date forward. Interest for earlier days uses the higher balance; interest for later days uses the reduced balance.

After clicking Calculate, the list shows one row per customer who has an interest charge:

The last row shows Total with the sum of all service charges. Column headers are clickable for sorting.

Clicking Post creates one adjustment transaction per customer:

Transaction Details

• Type: Card Adjustment (increases the customer's AR balance).
• Post Date: The End Date of the period.
• Due Date: Calculated based on the customer's grace period setting:

• Memo: "Service Charges".
• GL Entries: Debit the customer's AR account; Credit the selected service charge income Account.
• Store: Uses the customer's assigned store if they have one; otherwise the Posting Store.

After Posting

• The store's Last Service Charge date is updated to the End Date, so the next run automatically starts from the correct date.
• The store's Charge Account is saved as the default for future runs.
• The screen closes automatically after a successful post.

Calculate

Runs the interest calculation for all active customers. Shows a progress dialog (cancellable). Results appear in the list. You can re-run Calculate with different dates without posting.

Post

Posts the calculated charges. Requires a valid Posting Store and Account. Prompts for confirmation before proceeding. Validates:
• Posting Store is required.
• Account is required.

Cancel

Closes the window without posting any charges.

Monthly Service Charge Run:

1. Open Service Charges. The Start and End dates auto-fill to the next unprocessed statement period.
2. Verify the Posting Store and Account are correct.
3. Click Calculate. Wait for the progress dialog to complete.
4. Review the results. Pay special attention to customers with the Unalloc Credits? flag — consider applying their credits before posting interest charges.
5. If the amounts look correct, click Post. Confirm when prompted.
6. The charges are posted and the screen closes. The next run will automatically start from the correct date.

For service charges to calculate correctly, ensure:

• Each customer's Service Charge rate is set in their Customer Master (e.g. 1.5% per month = 18% annual rate, entered as 18).
• The store has a configured Statement Period (monthly, bi-weekly, etc.) for auto-date calculation.
• A GL Service Charge Income account exists for the revenue credit side.
• Customer invoices have correct Due Dates (set via payment terms).