Calculating Interest on a File

 

In order to be able to calculate interest on all overdue accounts the option needs to be enabled in System Control. 

 

To only calculate interest on selected files, you can make the change in the Billing Tab on the file.

 

 

 

 

 

Just fill in the parameters according to your Firm’s policy.  In the example we want to charge 5% interest to File 20120001.  Interest is to be calculated from the date the invoice was due and only charged on overdue accounts.  I would like the interest to be created as a debtor invoice.  Once you are happy with your selections press Calculate.

 

 

 

You will notice that two things happen.  One, there will be an invoice on the clients file for interest.  Secondly, if you open the overdue invoice/s you will see there is now an Interest field which records the last date interest was calculated.  The next time you wish to calculate interest the system will remember this last interest date and adjust accordingly.