There are instances where a user may seek other ways to calculate Finance Charges. When a discrepancy arises, there may be difference with regard to the application of Minimum Finance Charge computation.
Computation of Minimum Finance Charge in NetSuite is done per Customer. If minimum finance will be done per Invoice, differences in computations will arise. For instance, if Minimum Finance Charge is 3.00, and:
1. Customer A has three Invoices 1, 2 and 3 with the following calculated amounts:
- Invoice 1 = 1.00
- Invoice 2 = 0.77
- Invoice 3 = 0.33
Total = 2.33; Since Minimum Finance Charge is greater than Calculated Amount, Finance Charge will be assessed at Minimum Finance Charge which is 3.00.
2. Customer B has two Invoices 1 and 2 with the following calculated amounts:
- Invoice 1 = 2.15
- Invoice 2 = 1.75
Total = 3.90; Since Minimum Finance Charge is less than Calculated Amount, Finance Charge will be assessed at Calculated Amount which is 3.90.