A/R Interest Profiles Screen

Choose either Document or Balance as the method for calculating interest charges on open-item accounts. You can charge interest on overdue invoices or overdue balances. For more information, see About Calculating Interest Charges.

Note: Balance-forward accounts are always charged interest on overdue balances.

Enter the number of days an account must be overdue before it is charged interest. This is the grace period.

Select this option to include previous interest charges in the overdue total used for calculating interest charges.

Select this option if you do not want to use the interest profile.

Normally, you use this option when you decide to delete an interest profile, and want to ensure that it is not assigned to any additional customer accounts.

Note: You cannot assign inactive interest profiles to customer records. Also, you cannot save changes to customers that use an inactive interest profile; you first assign an active interest profile to the customers.

Enter the number of the general ledger account to post the revenue from interest charges.

Type a unique code to identify the interest profile, using up to six characters.

Type a description of the interest profile.

Displays the date the last change was made to the interest profile.

Select this option to round up interest charges to the minimum amount you charge as interest.

Do not select the option if you have no minimum interest charge or if you charge interest regardless of the amount.

Use this table to specify the interest settings for each currency. If you do not use multicurrency accounting, this table will contain only a single line for your currency.

Click Add Line to add lines to the table.

In the table, enter information in the following columns:

Annual Interest Rate

In this column, enter the annual interest rate as a percentage. If you do not charge interest, type 0 (zero).

Example: To charge interest at 12% per year, enter 12 as the annual interest rate.

Currency Code

In this column, enter the currency code for each currency that is assigned to a customer who uses the interest profile.

Minimum Interest Charge

In this column, enter the minimum amount you charge as interest. Interest charges below this amount are either not invoiced or are rounded up to this amount, depending on your choice for the Round Up to Minimum option. If you charge interest as calculated, regardless of the amount, enter 0 (zero).

Example:

The minimum interest charge is $1.00. The interest calculated is $0.98.

• If you select this option, the interest charge is rounded up to $1.00.
• If you do not select this option, no interest is charged, because the $0.98 amount is less than the minimum amount of $1.00.