Interest Activation Setup Manual

Debtors Module> Configuration> Debtors Setup

 Select the debtor> Amend> Account Details> Interest Setup

 

 

Tick the Activate Option: This will activate interest calculations on that particular debtor.

If you wish to have interest calculated on all debtors, you will have to follow this process for every debtor.

Enter a minimum amount if applicable. This amount is the minimum amount that interest will be calculated from. That is, if the amount outstanding is less than this amount, no interest will be calculated.

Enter the period from: This field indicates from how many days outstanding to start calculating interest. ie, if you choose 30 Days as an example, the system will start calculating interest if the amount outstanding is more than 30 days old.

Enter the Interest rate applicable, example 10%.

Note: This is an annual percentage.

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