Apply Interest Charges to Invoice

Apply Interest Charges to an Invoice

Start by setting up the interest rate under File-> Company Branch-> Misc Tab.

Add the APR (Annual Percentage Rate) and an effective date. 

Also choose the new customer default either 'Apply Interest' or 'Do Not Apply Interest'.

Next on the Job go to the additional Info tab and check the 'Apply Interest' to this job box.

Then choose if you are using the APR set up under the Company Branch Setting,

or if you are going to override that rate and choose a Job specific APR.

Once 'Apply Interest' is checked on the job, and you run the next step, any created invoices will be updated.

Finally go to A/R -> Apply Interest Charges 

Select the Branch and the as of date (you may need to backdate) 

If you backdate to apply interest to July 1st but the invoice was created on July 5th the interest charge will apply from July 5th forward.

The concept of applying interest would be to go in on a certain day each month and apply interest for the month.

Once you Apply the interest under A/R the invoices will be updated with line item showing the interest charge.

*If you have a job that was not marked 'Apply Interest' and is 6 months past due, then you mark the job 'Apply Interest' the interest will be applied for the 6months when you 'Apply' the interest under A/R. 

Interest is pushed as an invoice additional charge.