Invoicing Interest for Late Customer Payments

This document explains how to bill a customer interest for late payments, calculated from the due date or the invoice date of the customer's invoices.

Outcome

An interest invoice is created for each payer or customer, based on selected paid and unpaid customer invoices. An accounting journal and a customer invoice journal are also printed.

The following information is included in the invoice:

Invoice number, invoice date, due date, payment date (for latest partial payment), number of calendar days for the interest calculation, currency, base amount for the interest, interest in currency amount, opening and closing comments. Information about the payer, telephone numbers, and organization numbers is also given, retrieved from 'Customer. Open' (CRS610).

Send the interest invoice to the customer. The invoices included in the interest invoice can be reviewed in 'Accounts Receivable. Display Additional Information' (ARS250). The interest invoice itself is displayed in 'Accounts Receivable. Display' (ARS200).

Accounts receivable and the general ledger are updated. The basic transactions created are:

Accounting Rules(Acct. event+Acct. type) Account Debit Credit
AR50–100 Debtor's control account x  
AR50–320 Interest revenue   x
AR50–330 Interest charge   x
AR50–110/111 VAT payable   x

The set of interest invoices created is saved in the following files: FPINT1 (listing name and status of all reminders), FPINT2 (listing payers), and FPINT3 (listing invoices).

The interest invoice is automatically assigned information category number 204 and is saved under its interest invoice number. The invoice is automatically blocked – see Block Code for Customer Invoice. However, it will be included when creating a debt collection assignment in 'Collection. Enter Assignment' (ARS170).

Before you start

Follow These Steps

  1. Create an Interest Invoicing Proposal

    Create a proposal in 'Interest Invoice. Open' (ARS160) by specifying up to 13 different selection criteria.

  2. Adjust the Proposal

    When necessary, adjust the proposal by blocking or deleting payers or invoices to prevent them from being included in the final interest invoice. This is done in (ARS165) and (ARS166), which are called via (ARS160).

    You can also add or adjust opening and closing comments to be printed on the collection assignment in (ARS165) which is called via (ARS160).

  3. Create the Final Interest Invoice(s)

    Create and print the interest invoices by confirming the proposal in (ARS160). As long as the interest invoice records are not deleted in (ARS160/B), the invoice can be printed again.

  4. Send the Interest Invoice(s) to the Payer

    Send the interest invoice to the payer. Since the assignment is saved under an information category number, you can review it in (ARS250).

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