1. To setup different interest rates and periods on which interest is to be charged –
go to Debtors>>Setup>>Interest
2. You may setup multiple interest codes as indicated above.
3. Credit Period is when interest must be calculated [eg, 30 days, then all amounts marked 30 days and over will be charged interest, 60 days, then all amounts marked 60 days and over will be charged interest, etc]
4, The percentage is the annual percentage of the interest to be calculated on the overdue amount.
5. Min overdue is the minimum amount that interest will be calculated on.
6. Go to the Billing Entity screen to setup the default interest code to be used for calculating interest – this will be the interest code to be used for most of your clients.
7. Where you want to calculate interest, either the period or the rate, you would indicate this on Master client under Billing Info tab.
8. To calculate interest:
Go to Debtors>>Interest>>calculate tab This will list ALL the debtors and show a column with overdue amount and interest calculated thereon.
9. Click on the wheel at the top and select Calculate Interest, this will generate the interest transactions for each applicable debtor
10. Print out the following reports:
Debtors control
Age analysis – compare the amounts against the amounts on the ledger screen
NB: Debtors control and Age analysis should always balance!! If the reports do not balance, run a recalc.
11. If you’re satisfied with all the amounts – print the Statements.
12. Go to the Billing Entity screen>>Billing periods>>close the current period and open a new period
13. Switch view on billing entities and click on the drop-down arrow next to “current period” and select the new current period dates.
