Create interest rate per date

Outcome

The interest rate per date function enables the possibility to calculate interest for periods with different percentages. The interest rate percentage is created per date instead of an annual rate.

You can review the interest rate per date in (ARS008). The interest rates per date are saved in the table (FARINT).

By creating interest rates on an interest invoicing rule in 'Interest Rate per Date. Open' (ARS008) and activating parameter 'Daily interest rate' on the interest rule in 'Interest Invoicing Rule. Open' (CRS460), the interest amount is calculated with interest rate per date from (ARS008) when creating interest invoices in 'Interest Invoice. Open' (ARS660). If the parameter 'Calc interest' is activated in 'Payment Reminder Rule. Open' (CRS465), you can also use interest rate per date from (ARS008) when calculating interest on payment reminders in 'Payment Reminder. Open' (ARS650).

With this setup (ARS008) overrules the annual interest rate on the interest invoicing rule (CRS460). If interest rate per date calculation results in interest amount zero, the annual interest rate from (CRS460) is used. This scenario applies to interest rules with daily interest rate parameter activated but no setup exists for this interest rule in (ARS008).

Before you start

Before you start, you must create interest invoicing rules in (CRS460).

See Create Interest Rule.

If different interest rates is required for the customer in different divisions, you must defined separate interest rules in (CRS460) and connect to the customer’s local exception in 'Customer. Open Local Exceptions' (MFS610).

Follow these steps

1. Start 'Interest Rate per Date. Open' (ARS008/B1).
2. Specify 'Interest rule' and 'Rate date'.
3. Click New.
4. On the E panel, specify 'Annual interest'.
5. Press Enter.
6. Optionally, repeat steps 2 through 5 to specify other percentage on the other dates.