84 Work with Interest Rate Information

This chapter contains these topics:

If you send interest invoices to assess charges on past due amounts, you must define the interest rates and the text to appear on the invoices.


From Accounts Receivable (G03), enter 27

From A/R Advanced and Technical Operations (G0331), choose Interest Invoicing

From Interest Invoicing (G03312), choose an option under the Setup heading

84.1 Defining Interest Rates

In order for the system to calculate interest charges on overdue invoices, you need to specify the interest rate. You can specify a monthly finance charge percentage in the customer master record, or you can define the interest rates and effective dates that the system uses to process interest invoices.

Define interest rates for company 00000 to use as the default rates for all companies. You can also define interest rates for a specific company

Interest rates are stored in the Interest Rate Constants table (F00017).

To define interest rates

On Revise Interest Rates

Figure 84-1 Revise Interest Rates screen

Description of Figure 84-1 follows
Description of ''Figure 84-1 Revise Interest Rates screen''

  1. Complete the following fields:

    • Interest Computation Code

    • Company

    • Description (optional)

    • Effective Date

    • Effective Interest Rate

Field Explanation
Interest Computation Code A code indicating what interest rate is to be charged for late joint interest invoices for this business unit or owner. This code is also used for computing interest on late or suspended royalties in the Revenue Distribution system. This code can be established in the Business Unit Master table (F0006) for all owners in the DOI's for the business unit, or may be assigned by owner in the DOI Detail Revisions programs. The company field should be left blank for all uses except Interest Invoices.

When used for Interest Invoicing in the Accounts Receivable system, this code is "INV." A rate should be entered for each company used in A/R or for company 00000. The rates entered for company 00000 are the default rates when no record exists for the particular company.

Effective Date The date on which this transaction takes effect. The effective date is used generically. It can be the date of the next raise, a lease effective date, a price or cost effective date, a currency effective date, a tax rate effective date, change in well status, or whatever is appropriate.
Effective Interest Rate The effective interest rate associated with this particular payment terms code. This must be entered manually as several payment terms codes have an indeterminate interest rate (for example, 30/60/90 terms or prox 25th). Leaving the effective interest rate blank will void the comparison of this rate with the current borrowing rate (CBR) in order to determine whether a discount is to be taken. Input interest rate as a full number between 0 and 99 rather than a decimal fraction.

84.1.1 What You Should Know About

Topic Description
Deleting an interest rate To delete an interest rate and its effective date, clear the appropriate fields.

The Delete action deletes the entire list of interest rates.

84.2 Entering Text For Interest Invoices

To create a personalized message to print on your interest invoices, you must enter the text. You can enter messages for a specific customer or all customer within a company.

When you enter or revise the text for interest invoices, the system creates the key for generic message text. The system stores this key in the Generic Text Index Key table (F00163) and the actual message in the Generic Text Entry table (F0016).

To enter text for interest invoices

On Revise Interest Invoice Text

Figure 84-2 Revise Interest Invoice Text screen

Description of Figure 84-2 follows
Description of ''Figure 84-2 Revise Interest Invoice Text screen''

  1. Complete one of the following fields on the first available blank line:

    • Address

    • Company

  2. Complete the following optional field:

    • Language

  3. Press Enter or click Add to create record.

  4. Locate the customer or company you just added.

  5. Choose the Narrative Text option next to the customer or company.

    Figure 84-3 Interest Invoices Print Message Text screen

    Description of Figure 84-3 follows
    Description of ''Figure 84-3 Interest Invoices Print Message Text screen''

  6. On Interest Invoices Print Message Text, enter the message to appear on the interest invoices.

84.2.1 What You Should Know About

Topic Description
Displaying a specific customer or company To limit the list of customers and companies, specify the appropriate address number or company number at the top of Revise Interest Invoice Text.
Deleting a customer or company To remove a company or customer from the list of interest invoices text, choose Delete next to the appropriate customer or company.

The Delete action deletes the entire list of customers and companies.

Creating a model message To use the same text for several companies, you can create a model message.

See Chapter 81, "Set Up Statement Messages" for more information.