Interest invoices

You can generate interest invoices for paid invoices, partially paid invoices, and unpaid invoices. In addition, after you generate and send an interest invoice, you can generate a subsequent interest invoice for the next period.

To set up interest invoicing

You can set up interest invoicing in Accounts Receivable and in the General Ledger.

To set up interest invoicing, use these sessions:

  • Invoice-to Business Partners (tccom4112s000)
    For invoice-to business partners for which you want to raise interest invoices, select the Charge Interest check box.
  • Mapping Scheme (tfgld4573m000)
    Use this session to define the mapping of the Interest Invoice / Revenues Analysis integration document type.
  • Interest Percentages (tfacr5102m000)
    Use this session to define the interest percentages for each financial business-partner group, and for different periods of days.
  • Interest Invoice Parameters (tfacr5101s000)
    Use this session to define whether interest must be calculated on unpaid invoices, partly paid invoices, interest invoices, and/or fully paid invoices. You can also indicate that LN must take advance payments, unallocated payments, and credit notes into account for the generation of interest invoices.
  • Optionally, set conditions

    Example: LN only generates an interest invoice advice entry if these conditions are met:

    • The total of all advice entries in one currency is higher than the allowed minimum amount of an interest invoice defined in the Min Amnt for Int. Inv field.
    • The invoice is overdue for a greater number of days than the number of days defined in the Min. Days for Int. Inv field.
To process interest invoices

To generate interest invoices:

  1. In Accounts Receivable, use these sessions:

    • Select Invoices for Interest Invoicing (tfacr5210m000)
      Use this session to select invoices for which interest invoices can be generated and calculate the interest amounts according to the parameter settings of the Interest Invoice Parameters (tfacr5101s000) session.
    • Interest Invoice Advice (tfacr5510m000)
      You can use this session to view the selected interest invoicing data, and delete some records if this is necessary.
    • Transfer Interest Invoices To SLI (tfacr5220m000)
      Use this session to transfer the interest invoice advice from Accounts Receivable to Invoicing.
    When you transfer the interest invoices to Invoicing, LN deletes the interest advice lines from Accounts Receivable.

See: Invoicing procedure.

If interest invoices for the business partner already exist in Invoicing that have the Printed or Posted status, LN generates a new interest invoice. If a previous interest invoice with the Selected status exists for the business partner in Accounts Receivable, LN changes the existing interest invoice to include the new number of days and the new interest amount.

When you post the interest invoices, LN creates open entries for the interest amounts in Accounts Receivable. The interest invoices are posted to the ledger accounts to which you mapped the Interest Invoice / Revenues Analysis integration document type.

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