You can define interest parameters at system option level, customer profile classes, or invoice level.

Automatic Interest Calculation

Receivables calculates interest for an overdue invoice when you enter a receipt and use the Enter Receipt, QuickCash, or Bank Transfer features.

Different Types of Interest Calculation

You can choose to calculate interest either based on the total invoice amount or on a partial payment. Receivables uses a simple or compounded formula to calculate the interest based on the parameters that you set up for the invoice.

Different Treatments for the Calculated Interest Amount

You decide to pay, cancel, or create an Interest Debit memo with the calculated interest amount when you receive the invoice.

Penalty Fee

You can define a penalty fee and interest for overdue invoices.

Interest Calculation Based on Business Day Calendar

Receivables calculates interest according to the business day calendar and shows the interest value and number of days that a payment is late. If the due date is a weekend or a holiday, Receivables lets you anticipate, postpone, or keep the due date for the interest calculation.