About Interest Profiles

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Adding or Modifying Interest Profiles

A/R Interest Profiles Screen

About Calculating Interest Charges

You create interest profiles to specify how to charge interest on overdue amounts.

You must set up at least one interest profile in Accounts Receivable before you can add customers, and you must assign an interest profile to each customer.

If you do not charge interest to customers, assign them to an interest profile with 0 (zero) as the annual interest rate.

You can set up as many interest profiles as you need for the ways and rates used to charge interest. For information about how Accounts Receivable calculates interest, see About Calculating Interest Charges.

By default, the interest profile for a customer group is assigned to customers and national accounts in the group (for example, when you add a new customer to a customer group, or change a customer's group). However, you can change the interest profile for a customer.

Note: National account customers use the national account's interest profile. You can change a customer's interest profile only by changing the interest profile for the corresponding national account.

Multicurrency Interest Profiles

If you use multicurrency accounting, you must specify a minimum interest charge and annual interest rate for each currency used by the customers assigned to a particular interest profile.

Numbering Interest Invoices

Use the Numbering tab on the A/R Options screen to specify a prefix for interest invoice numbers. For example, you might enter a prefix of INT. This prefix identifies interest charges on invoices, statements, and reports.

You can also specify the number to assign to the next interest invoice. Accounts Receivable then automatically increases this number by 1 for subsequent interest invoices.