Interest invoices

Setting 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 Partner (tccom4112s000)

  For invoice-to business partners for which you want to raise interest invoices, select the Charge Interest check box. If this checkbox is selected, you can select the Interest Rate Code. This interest rate code is assigned to the business partner. If you specify this value, the Interest Rate Code specified in the Financial Business Partner Groups (tfacr0110m000) session is ignored. The interest rate defined for this Interest Rate Code is used to calculate interest amount on reminder letters and interest invoices.

• 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 Related Data (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 Minimum Amount for Interest Invoice field.
  • The invoice is overdue for a greater number of days than the number of days defined in the Minimum Days for Interest Invoice field.

Processing interest invoices

To generate interest invoices:

1. In Accounts Receivable, use these sessions:

   • Select Inv.-to BP Receipts for Interest Invoices (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 Related Data (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 Invoicing (tfacr5220m000)

     Use this session to transfer the interest invoice advice from Accounts Receivable to Invoicing.
   When you transfer the interest invoices to Invoicing, LN removes the interest advice lines from Accounts Receivable.

2. In Invoicing:

   1. In the Billable Lines (cisli8110m000) session, you can optionally view the interest invoice data. You can change the status of individual lines to Confirmed or On Hold, as required.

   2. Create an invoicing batch to process the interest invoicing data, or process an invoicing batch set that contains such an invoicing batch.

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.