Setting Up Interest Charges

The POS allows you to charge interest on overdue customer accounts. You are able to setup two separate interest rates and select which customers each rate is applied to. Interest charges are then run as a batch charge on the schedule of your choosing. 

Create the Interest Item

You will need to create an item in your item setup that represents the interest charge. When interest is charged on a customer's account, this will be the actual item that they are charged with and the amount of the charge will depend on the amount owing from the month selected. Note: The item name is the name that the customer will see on their statement along with the charge.

1. Click Admin
2. Click Items and Departments
3. Select the department or sub-department the item is being added to. 
4. Click Add Item
5. Type a SKU for the item or leave the auto-generated sku
6. Type a Name for the Item.  Press Tab three times to copy the Name to Button Text, Receipt Description and Label Text. 
7. Set the Accounting Reference
8. Set the Tax
9. Set the Item Type to Membership/Yearly Rental Item
10. Click Next
11. For the retail price, type in 0
12. Click Save

Repeat this process and create a second interest item if your club has two separate interest percentage options. 

Set Interest Rate

Next, you will need to setup these items as the interest items within your system. 

1. Click Admin
2. Click Customers
3. Click Set Interest Rates
4. Check the box for Charge Interest
5. Type a Description
6. Type the Interest Percentage
7. Click Pick Item
8. Select the Interest Item you created in step 1.
9. Click Ok

Repeat this process for Rate 2 if your club has two interest rates. 

Set Customers to be Subject to Interest

Next, you will need to set the customers that will receive the interest charge, and if you have two different charges setup, which percentage applies to which customer. 

1. Click Admin
2. Click Customers
3. Search and select the customer. 
4. On the Member Type tab, check the box for Charge Interest
5. Click Set Interest Rate
6. Select the appropriate Rate for the selected customer. 
7. Click Ok
8. Click Save

Charging Customers Interest

The final step is to apply the interest charge to the customer's accounts. This will likely be done once a month and the system is setup to allow for interest charges on account that are 60 days (or more) overdue.

1. Click Admin
2. Click Customers
3. Click Batch/Automated Payment
4. Click Interest Charges
5. Select the Account charges will be applied to. 
6. Select the Month charges are being applied to. 
7. Select the Year charges are being applied to. 
8. Select the Payment Date - the date you want to appear on the customer's statement as the date the interest was charged on. You can select past dates but not future dates. 
9. Select the override option if you want to override the rates specified on the customer's profiles and apply the same rate to everyone. 
10. Click Generate Interest Charges
11. Click Print
12. An Interest Charge Report will open that will list the customers and the amount of interest they will be charged. This report can be printed or closed. 
13. Click Apply
14. Click Ok