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If Accrue Interest is No but the Charge Interest option for this customer's profile class is set to Yes, Receivables prints finance charges on statements for the customers and customer sites for which you have chosen to charge interest and that are included in this statement submission. However, Receivables does not update the balance due of these debit items in the Transactions or Collections windows.
Use the following example to understand how Receivables accrues finance charges:
Example:
Invoice = $1000
Due Date = 01-OCT-93
Interest Rate = 1%
Days in Period = 30
Accrue Interest = Yes
You run the statements or dunning program to calculate finance charges on 31-OCT-93 and get the following results:
.01 * $1000 * 30 = $10 30 |
$1000 invoice |
$1010* |
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