Interest code

Enter a code of up to ten alphanumeric characters.

Description

Enter a description of the interest code.

Debit %

Enter the interest percentage to be charged per month for invoices and interest.

Debit calculation per

Specify the unit of time for which to calculate interest on due balances. This field works in conjunction with the Day/Mthfield, based on the period that you select. The interest calculation supports, for example, interest added on a daily basis (1 day), or interest added the first of each month (1 month). If you select the daily basis, each additional day will cause 1/30 interest. If you select the monthly basis, 30/30 interest will be added one day past the new monthly period.

Day/Mth

Select Dayor Monthto determine the period that the interest is calculated for. This field relates to the Debit calculation perfield to determine the period of time for which to calculate interest on the due balances.

Ledger posting debit

Enter the ledger account for posting interest earnings.

Credit %

Enter the interest percentage to be paid per month for expenses, for example, credit notes and payments.

Credit calculation per

Specify the unit of time for which to calculate interest on due balances. This field works in conjunction with the Day/Mthfield, based on the period that you select. The interest calculation supports, for example, interest added on a daily basis (1 day), or interest added the first of each month (1 month). If you select the daily basis, each additional day will cause 1/30 interest. If you select the monthly basis, 30/30 interest will be added one day past the new monthly period.

Day/Mth

Select Dayor Monthto determine the period that the interest is calculated for. This field relates to the Credit calculation percalculation per field to determine the period of time for which to calculate interest on paid balances.

Ledger posting credit

Enter the ledger account for posting interest payments.

Start date

Select the date that the interest rate becomes effective.

Note
To set up an interest code with only one interest rate, leave this field blank.

This field is available only if the Multiple interest ratesconfiguration key is selected.

Debit %

Enter the interest percentage for revenue, such as an invoice or an interest note.

This field is available only if the Multiple interest ratesconfiguration key is selected.

Credit %

Enter the interest percentage for an expense, such as a credit note or a payment.

This field is available only if the Multiple interest ratesconfiguration key is selected.

Days

Enter the number of days allocated for a grace period from the due date to the date when the charges will be initiated. For example, a company might allow five days from the actual due date to the date that payment is received, before beginning to charge fees and interests. In that case, enter 5in this field.

Currency

Select the currency that activates the fee. This is used as a criterion when the relevant fees are selected. Only transactions with this currency can activate the fee.

Description

Description of the interest in the current language.

Fee account

Enter the ledger account where the fee should be posted.

Fee account

Enter the fee in currency for interest notes with this currency code.

Item sales tax group

Select the item sales tax group to be used for calculating sales tax on interest notes.

Minimum amount

Enter the minimum amount of calculated interest to charge. Interest less than the amount in this field will not be added. Zero in the field means no limit. For example, if the interest is calculated to 9 dollars, and the amount in this field is 10 dollars, interest will not be added. Negative interest will not be created in the interval (-9,0).

Note
The value in the field is the absolute value, for example, -7=7, 10=10, and -10=10.

Interest code

Interest codeused for calculation.