Interest command

Use this command to process interest charges on overdue accounts. Prior to processing interest for the first time, it is necessary to specify for which clients you want to process interest. Show me

The interest calculation is Interest Rate multiplied by Number of Days.

Interest charges are posted automatically to the invoice journal and statements. Interest charges do not print as separate invoices.

Interest charges should be applied after cash receipts and credit notes have been processed for the current period. Interest charges can be reprocessed in the same period.

Process interest charges on those outstanding invoices issued XX days

Enter the number of days before the end of the current period for which you want to process interest. The number of days is ordinarily 30 or 31 depending on the number of days in the current active period. The number of days and the date before boxes are used to conduct a search of the accounts receivables to locate all outstanding invoices matching the date criteria.

before DD/MM/YY for

Is set by default to the end of the current active period and this can be changed as necessary.

the period of XX days

Specify the number of days want to include in the interest calculation. If processing interest on a monthly period, the number of days is normally 30 or 31. This option is used in the interest calculation to determine the number of days in the year for which interest is applied to all invoices matching the date criteria. In this example, all invoices that are overdue are charged the same rate regardless of whether they were originally processed on the 10th or the 20th of the month. Use this option if you process invoices in a batch mode.

OR

from the date of the invoice

Select this box to use a variable "Number of Days" in the interest calculation. This option finds all outstanding invoices that match the date criteria but calculates a different interest rate based on the date of each invoice. In this example, invoices that were processed on the 10th of the month are charged a slightly higher interest rate than invoices processed on the 20th of the month.

at the rate of XX.00% per annum,

Enter the annual interest rate. This is set by default to 10%.

compounded monthly

Check the box to compound interest monthly.

Interest charges greater than $XXX.00 with an effective date of DD/MM/YY will be processed.

Enter a minimum interest amount. The interest charges are posted to the interest account if greater than the minimum charge displayed.

Include unapplied credit notes and cash receipts

If your firm includes unapplied credit notes and cash receipts in its interest calculation, check the box.

Process

Processes interest for all clients/groups specified in the Client/Group List.

Note: If the interest invoice number has reached the upper limit for the identifier chosen, e.g., INT9999, a message pops up instructing you to go to the Company Profile, choose a new identifier and reset the numbering to 0. Processing of interest is prevented until a new numbering pattern is set up.

Related Topics

• Reverse Interest command