This document explains how you determine how interest is calculated when customer invoices are created from a payment plan.
Sets of interest values are created for different payment plan types. The sets define from which date interest is calculated, the interest rates, and VAT codes, when applicable.
Connect the interest ID to a payment plan in 'Payment Plan. Open' (ARS390/F). It will then be applied automatically when invoices are created in 'Customer Invoice. Create from Payment Plan' (ARS380).
Even after you have started creating invoices, you can change the interest ID for the payment plan. The new interest is then applied to the remaining payment records that are not processed.
The interest ID is saved in the table for interest rates, FARIRT.
|Program ID/Panel||Field||The field indicates …|
|(ARS007/B)||From date||… the date from which the interest ID can be applied. This date cannot be later than the From date of the payment plan.|
|(ARS007/E)||Interest rate||… the interest expressed as a percentage.|
… from when interest should be calculated.
1 = Daily interest from due date
2 = Daily interest from invoice date
3 = Straight percentage on each installment.
Alternatives 1 and 2 are only valid if the interest ID is connected to a payment plan of type 2, that is, a plan based on an existing invoice. Alternative 3 can be used with payment plans of both type 1 (based on agreement) and type 2.
When invoices are created in 'Customer Invoice. Create from Payment Plan' (ARS380) based on a payment plan with an interest ID, the interest is calculated as follows:
Interest categories 1 and 2: The number of days between payment date and due date/invoice date is multiplied by the interest rate. The result is then multiplied by the amount of the payment record in 'Payment Plan. Open Details' (ARS391).
Interest category 3: The amount of the payment record in (ARS391) is multiplied by the interest rate.
… a component that controls what VAT method and VAT rate to apply on the interest. This VAT code is proposed when you select the interest ID in the payment plan.
In the payment plan, you can have separate VAT codes for the invoice record amount, interest amount, arrangement fee, and administrative fee.
Start 'Interest ID. Open' (ARS007/B).
Enter a two-character ID and the valid From date. Click Create.
Enter the interest rate and select an interest category.
Enter a VAT code (optional).
Enter a description (required) and a name. Press Enter.