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Allow Interest Invoices. Enable this option if you want to allow Payables to calculate interest for overdue invoices and create interest invoices for selected suppliers. Payables automatically creates interest invoices when you pay overdue invoices in a payment batch or with a Quick payment. If you pay an overdue invoice using a manual payment, Payables warns you that interest is due on the invoice and you should pay the invoice in a payment batch or with a Quick payment.

When you enable the Allow Interest Invoices Payables option, Payables enables the Allow Interest Invoices option in the Payment Region of the Suppliers window for all new suppliers you enter. You can override this default value at any time. If you do not enable the Allow Interest Invoices Payables option, you cannot enable the Allow Interest Invoices option in the Suppliers window.

Minimum Interest Amount. If you enable the Allow Interest Invoices option, you must enter a value in this field that represents the minimum interest amount Payables will pay. If the calculated interest amount is less than this amount, Payables does not create an interest invoice.

Suggestion: Because interest payments compound every thirty days, we suggest you pay interest when it is due, rather than allowing it to compound. Set the minimum interest amount low enough so that your interest does not compound, but not so low that you pay very exceedingly small amounts of interest on past due invoices.

Expense Interest Invoice Account. If you enable the Allow Interest Invoices option, you must enter an interest expense account. Payables posts interest invoice distributions to this account when you post to the general ledger.

Liability Interest Invoice Account. If you enable the Allow Interest Invoices option, you must enter an interest liability account. Payables posts interest liability distributions to this account when you submit the Payables Transfer to General Ledger program. This interest liability account is always used when interest invoices are automatically created during the payment process. Payables does not overwrite the interest liability account using your FlexBuild Method system option.

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