Click Accounts receivable> Setup> Interest and collection letter> Interestto open the Interestform.

On the Overviewtab, press CTRL+N to create a new line.

In the Interest codefield, enter the unique code to be used to calculate interest.

In the Descriptionfield, enter a description of the interest code.

Click Setup.

Under the Interest earningsfield group in the Ledger posting debitfield, select the ledger account number for interest earnings.

Under the Interest paymentsfield group in the Ledger posting creditfield, select the ledger account number for interest payments.

In the Tax-free periodfield, enter the number of days after which interest is calculated.

Note
The interest is calculated from the payment date.

In the Daysfield, enter the number of days that the payment can be delayed without accruing interest.

On the Multiple interest ratestab, in the Debit %field and the Credit %field, enter the free-hand interest rates.

Note
The Multiple interest ratestab is available only if you select the Multiple interest ratescheck box in the Accounts receivable parametersform, on the Interest and collection lettertab.

In the Taxation Dt% field and the Taxation CT% field, enter the tax interest rates.

Note
For more information, see "Interest (form)" in the Applications and Business Processes Help.

Press CTRL+S or close the form.