Enter the total annual rate at which you charge interest. You enter the rate as a percentage.
Example: To charge interest at 12% per year, enter 12 as the annual interest rate.
Choose the method by which you calculate 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.
Select this option if you include previous interest charges in the overdue total on which you charge interest.
If you use multicurrency accounting, enter the currency code for each currency that is assigned to a customer who uses the interest profile, then enter the minimum interest charge and annual interest rate for each currency.
Type a description of the interest profile.
Select this option if you do not want to assign the interest profile to any customers.
You primarily use this option when you decide to delete an interest profile, and want to ensure no further customer accounts are assigned to it. You can change your entry any time.
You cannot assign inactive interest profiles to customer records. Also, you cannot save changes to customer records that use an inactive interest profile, unless you first assign an active interest profile to the records.
Enter the number of the general ledger account to which you post revenue from interest charges.
Enter a code to identify the interest profile, using up to six characters.
This is an information field in which the program displays the date of the last change made to the profile. You do not make an entry in this field.
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 the minimum interest charge is $1.00, an amount of $0.98 is rounded up to $1.00, if you use the option to round up.
If you do not use the option, no interest is charged, because the $0.98 amount is less than the minimum amount of $1.00.
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.
If the minimum interest charge is $1.00, an amount of $0.98 is rounded up to $1.00, if you use the option to round up.
If you do not use the option, no interest is charged, because the $0.98 amount is less than the minimum amount of $1.00.
Overview
Note: Depending on how your system is set up, this desktop screen may also be available as a web screen. For more information, see the Web Screens Getting Started Guide or the help for Sage 300 web screens.
You use the A/R Interest Profiles screen to:
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Specify how you charge interest on overdue accounts, including:
- Whether to charge by overdue invoice or account balance
- The number of days overdue before interest is charged
- Whether to compound outstanding interest charges
- The minimum interest charge
- Whether to round up interest charges to a minimum amount
- The annual interest rate
- For multicurrency accounting, the minimum interest charge and annual interest rate for each currency.
- Assign the general ledger account to which you post revenue from interest charges.
- Specify a prefix for interest invoice numbers.
You must add at least one interest profile in Accounts Receivable before you can add customer records, 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 rate.
You can set up as many interest profiles in Accounts Receivable as you need for the ways and rates with which you assess interest charges. For information about how Accounts Receivable calculates interest on outstanding documents or balances, see About Calculating Interest Charges.