Create interest invoices

Customers that you extend credit to, you may want to be able to keep or reinforce your terms by having a policy of charging them for overdue accounts.
The create interest invoices utility creates interest invoices for invoices that are outstanding depending on the parameters you specify.

Accounts Receivable>A/R Utilities> Create Interest Invoices

Figure 1: Create Interest Invoices Interface

There are a number of settings that can determine if interest is calculated on each invoice.

1. Interest settings on a customer under the Financial tab.

2. Option to charge interest on each Invoice, on the invoice tab.

Note: Ensure you have applied all credit invoices before creating interest invoices. See Apply A/R Credits.

Options Tab

Age By

The Create Interest Invoice routine can be run by Book Month.

Or by Date...

Note: By Book Month only is recommended.

Options

Select any or none of the following options. The list of outstanding invoices is particularly useful for seeing how the interest is calculated.

These options are the same as those in the Aged A/R report.

You also have the option to show the list by Aging or by part

Note: Department Options are only available for Departmentalized Data Sets.

Currency Tab

Select Currency you want shown in the report.

Note: Only Available for licenses with multicurrency setup

List Options Tab

Tick the option/s you want included in your report

Interest Settings Tab

On the Interest Settings tab you can set:

• The Interest Rate - this is for a year, non compounded. (This rate can also be set in the Setup Wizard and is repeated here for convenience.
• The Interest Invoice Book Month, which should be the next book.
• The Interest Invoice Date, which should correspond to a date within the book month.
  

Lookup Words

Interest Invoices

Clicking Calculate generates the report, quite similar to the A/R listing but with 2 additional columns: Interest On and Interest.

If you wish to override the calculated interest, you can type in a value in the interest column.

Interest On - Shows the amount it will charge interest ON

Interest - Shows the interest amount it will charge

Interest invoices are created with an invoice number of INTRST.

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