Service Charges

When you calculate service charges, the system checks outstanding invoices for overdue amounts, and multiplies the amount of those invoices by a percentage that you establish. There are a variety of ways to calculate service charges; see the chapter entitled Application Features for a full accounting of your options. No matter how service charges are calculated, they are always posted the same: The system debits the appropriate Accounts Receivable account for the amount of the charge, and credits the Service Charges income account established in the Parameters file.

Thus, the post to General Ledger of a $25.00 service charge updates the following accounts: