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Payables calculates interest based on the rate you enter in this window is in accordance with the United States Promt Payment Act. The formula used compounds monthly, up to a maximum of 356 days interest. You can review the formula in the following discussion: Automatic Interest.

For each rate you define, specify during which dates the rate is effective. Effective dates of rates cannot overlap. For example, the current interest rate is 7% for all unpaid balances. The interest rate on overdue invoices will rise to 7.5% on December 1, 1996. This new rate will be valid for three months. You enter two date ranges and interest rates, the first from today's date to 30-NOV-98 (interest rate 7%) and the next from 01-DEC-98 to 28-FEB-99 (interest rate 7.5%).

You can add or change a rate at any time. Payables uses the interest rate that is valid on your payment date to calculate and pay interest on overdue invoices.

Prerequisite

   Enable the Allow Interest Invoices Payables option. See: Interest Payables Options

   To define payment interest rates:

1. In the Payment Interest Rates window, enter an interest rate, and enter a start date and an end date between which the interest rate is effective.

2. Save your work.

See Also

Automatic Interest