Penalty interest invoicing

The charging of interest on overdue accounts receivable (AR) debts may be calculated charged on any invoice that is not settled by the due date. The basis of calculation is the number of days overdue by transaction, or days from original invoice date once an invoice has become overdue. The interest charge creates an AR open item.

How Infor meets this requirement

After you have an agreement, structure this interest charge in SyteLine as a finance charge for the customer. You can set it up to include only the interest or also the late paid amount. You can manually set up administration charges.

Be aware of this information about how this ERP handles this;

  • The interest is summed across all invoices for a customer, and then an interest charge will apply if this total is greater than the minimum amount (minimum interest charge, converted from base to transaction currency).
  • Statistical interest charges, that is, noting what penalty could have been charged, without actually posting it, is possible if you verify the calculated financial charges on the Finance Charges form, but do not post them.
  • Compound interest charges can be activated on the Accounts Receivable Parameters form.
  • Interest can be charged on any invoice not settled by the due date. The basis of calculation is number of days overdue by transaction, or days from original invoice date once an invoice has become overdue. The ERP includes the ability to specify an invoice due date.
  • The interest charge should be created as an open item. The ERP creates finance charges records that can be reviewed and posted. Once the record is posted, this is an open item due for payment and is available in the A/R Posted Transactions Detail form.
  • Penalty interest is set at the site (accounting entity) level, and activated at the customer level. It is charged on a daily basis and is calculated in the domestic currency
  • Charges can be set at monthly or quarterly intervals using the statement cycle.
  • Interest is calculated on the gross amount of the debt (including any element of VAT), but VAT is not charged on the interest only.
  • You can delete an entire interest charge run.
  • You can exclude or re-include a customer in the run.
  • You can explicitly amend the charge for a customer.
Application Setup or Actions
ERP Set up a finance charge for the interest charge and any administrative fee. See the help on Setting up and generating penalty interest invoicing.