How to assess finance charges in NetSuite

The quick answer

Confirm the annual rate, grace period, minimum charge, income account, and assessment basis in Finance Charge Preferences. Open Assess Finance Charges, set the assessment date, review the eligible customer and proposed amount, tick only the approved row, and save. Open the processed invoice to verify the final charge.

This example assesses $19.73 against Riverton Office Supply’s overdue INV-84216. The screenshots use sample data and fictional names.

01 · Confirm the charge rules

Go to Setup > Accounting > Preferences > Finance Charge Preferences. Confirm Annual Rate %, Income Account, Tax Code, Grace Period, Minimum Finance Charge, Assess on Finance Charges, Assess From, and Custom Form. The example uses 15%, a five-day grace period, a $4.00 minimum, and Due Date as the starting point. Save returns you to the Setup Manager.

NetSuite Finance Charge Preferences showing Annual Rate % 15.0, Grace Period 5, Minimum Finance Charge 4.00, and Assess From set to Due Date — Treat Annual Rate % as a percentage and Minimum Finance Charge as a currency floor.

Confirm the contract and collection policy permit the charge. A past due balance alone is not approval to assess it.

02 · Review and assess

Open Transactions > Customers > Assess Finance Charges. Confirm the A/R Account, Subsidiary, Date, and Posting Period. The date drives eligibility: on September 4 the invoice due September 1 is still inside the five-day grace period, so the list shows no records. Set the date to September 21, 2026 and the customer appears with Amt. Past Due 2,400.00 and Finance Charge Due 19.73. Confirm the customer has not already been assessed for that date, then tick the row. Amount to Assess fills with 19.73 and the header Amount updates. Edit Amount to Assess only for an approved exception.

NetSuite Finance Charge assessment page with Riverton Office Supply ticked, Finance Charge Due 19.73, Amount to Assess 19.73, and the header Amount 19.73 — Ticking the customer proposes the calculated charge in Amount to Assess and totals it in Amount.

Customers with balances in several currencies can appear once per currency. The grace period decides eligibility only; the charge itself counts every day past the due date, which is why 20 days at 15% on $2,400 gives $19.73.

03 · Verify the new invoice

Click Save. NetSuite lands on Processed Transactions with a Confirmation banner, the new invoice number, the customer, and the amount. The number continues the ordinary invoice sequence (here INV-84217); there is no separate finance-charge numbering.

NetSuite Processed Transactions page listing invoice INV-84217 for Riverton Office Supply with amount 19.73 — After Save, Processed Transactions identifies the invoice created by the assessment.

Open INV-84217. The record uses the finance-charge invoice form: the title reads Finance Charge, the Memo is Finance Charge, the Due Date follows the customer’s terms, and the Summary shows the 19.73 total and amount due. The new invoice is not paid, emailed, or settled merely because the assessment completed.

NetSuite Finance Charge record INV-84217 for Riverton Office Supply showing Memo Finance Charge, Due Date 10/21/2026, and Amount Due 19.73 — The finance charge is a separate invoice rather than a change to the original receivable.

Check the result

INV-84217 belongs to Riverton Office Supply and is Open.
The charge is $19.73 under the example assumptions.
The Items line describes the overdue invoice: INV-84216, 09/01/2026, $2,400.00.

Items subtab of the Finance Charge record with the line Finance Charge on Overdue Balance Invoice, Due Date, Amount #INV-84216, 09/01/2026, $2,400.00 for 19.73 — The Finance Charge line names the overdue invoice, its due date, and its balance.

Common questions

Why is an overdue customer missing from Assess Finance Charges?

Check the assessment date, due date, grace period, outstanding balance, subsidiary, preferences, and whether the customer was already assessed that day.

Is Minimum Finance Charge a percentage?

No. Annual Rate % is the percentage; Minimum Finance Charge is the monetary floor applied under the account’s rules.

Can I change the proposed charge?

The page permits an Amount to Assess override, but use it only for an approved policy exception and verify the saved invoice afterward.