Adding or Modifying Interest Profiles

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

To add an interest profile:

1. Open Accounts Receivable > A/R Setup >  Interest Profiles.

2. In the A/R Interest Profiles screen, click Create New.
3. In the Interest Profile field, enter a code to identify the interest profile.
4. In the Description field, enter a description of the interest profile.
5. In the Interest Income Account field, enter the number of the general ledger account to post the revenue from interest charges.
6. In the Calculate Interest By field, specify whether to charge interest on each overdue document or on overdue account balances.
7. Specify the number of days an account must be overdue before you charge interest.
8. If you round up interest charges to a minimum amount, select the Round Up to Minimum option. Do not select this option if you have no minimum interest charge or if you charge interest as calculated, regardless of the amount.
9. If you include previous interest charges in the overdue total on which you charge interest (that is, you charge interest on interest), select the Compound Interest option.
10. In the table:
    1. Click Add Line.
    2. Enter the currency code for the line.
    3. Enter the minimum amount you charge as interest. If you charge interest as calculated, regardless of the amount, enter 0 (zero).
    4. Enter the annual interest rate. If you do not charge interest, type 0 (zero).
    5. If you use multicurrency accounting, repeat these steps for each currency that is assigned to a customer who uses the interest profile.
11. Click Save.

To edit an interest profile:

1. Open Accounts Receivable > A/R Setup >  Interest Profiles.

2. In the A/R Interest Profiles screen, enter the code for the interest profile you want to change.
3. Make your changes.
4. Click Save.

To delete an interest profile:

1. Open Accounts Receivable > A/R Setup >  Interest Profiles.

2. In the A/R Interest Profiles screen, enter the code for the interest profile you want to delete.
3. Click Delete.