You can set up and use multiple interest rates for an interest code. For each interest rate, you can assign a starting date, a debit percentage to use for interest that represents revenue, such as an invoice or interest note, and a credit percentage to use for interest that represents an expense, such as a credit note or payment. When interest is calculated, a separate interest note is created for each interest rate that is in effect during the time that the payment has exceeded the transaction due date.

Note Note

The tab is available only if the configuration key is selected.

To set up interest rates for an interest code

  1. Click > > > .

  2. Select an interest code, or press CTRL+N to create a new interest code and enter information on the and tabs.

  3. Click the tab and select ledger posting accounts for debit and credit amounts.

  4. In the field, enter 1, and in the field, select .

  5. In the field, enter 1, and in the field, select .

  6. Click the tab.

  7. Press CTRL+N.

  8. Leave the field blank. Interest for this interest rate is applied starting the first day that the payment is overdue.

  9. In the field, enter the interest percentage for revenue amounts, including invoices and interest notes.

  10. In the field, enter the interest percentage for expense amounts, including credit notes and payments.

  11. To set up additional interest rates, press CTRL+N. In the field, select the date that the interest rate becomes effective. This interest rate remains in effect until the next start date. Repeat steps 9 and 10.

See Also