• Overview
• Setting the defaults for Interest Charges
• Process the interest charges
• Eliminating interest charges
• Printing interest invoices
• Viewing only interest invoices on the Invoice Journal

Processing interest charges

You can charge interest for unpaid or overdue invoices. Interest is automatically calculated using one of two calculation methods. The first calculates interest on all overdue invoices for a defined period (e.g., the past 31 days).

The second method calculates interest on all overdue invoices from the original date of the invoice.

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. Interest charges can be eliminated for the current period only, if already processed in error, by setting the "Interest charges greater than" box to an amount greater than the largest invoice amount.

Interest charges are posted automatically to the sales journal and statements.

The WIP vs. A/R chart is an excellent example of how interest invoices affect reporting. Show me

Interest invoices appear in the Accounts Receivable and the General Ledger. They do not appear in the WIP.

Prior to processing interest for the first time, it is necessary to specify for which clients you want to process interest.

Results

• Setting the defaults for Interest Charges
• Specify which clients are charged interest
• Process interest charges
• Eliminate interest charges