Invoicing interest for late customer payments in (ARS160)

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. This table shows the basic transactions created:

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 these 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 is included when creating a debt collection assignment in 'Collection. Enter Assignment' (ARS170).

Before you start

Before you start, you must meet these prerequisites:

• You must meet the starting conditions listed in Managing customer debts.
• You must define the FAM function AR50 for interest invoicing in 'FAM Function. Open' (CRS405).
• You must define these accounting types under accounting event AR50:
  • 100: Interest invoicing (debtor's control account)
  • 111: VAT payable 1
  • 112: VAT payable 2
  • 190: Rounding off
  • 320: Interest revenue
  • 330: Interest charge.

• You must define number series type 51 under number series 1 for interest invoices in 'Number Series. Open' (CRS165).
• You must define an interest rule for how interest is calculated in 'Interest Invoicing Rule. Open' (CRS460).
• You must connect the interest rule to each customer in 'Customer. Open' (CRS610/K) and activate it in the adjacent field.
• At least one customer invoice must match the conditions of the interest rule.
• To use standard texts for opening and closing comments in the interest invoices per language, you must define these in advance in 'Interest Invoicing Rule. Enter Text' (ARS080).

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

   If 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 using (ARS160).

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

3. Create the final interest invoices

   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), you can print the invoice again.

4. Send the interest invoices 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).