Interest Proposal

Description of process

The Interest Proposal process is used to identify invoices for which interest is to be calculated. Each customer of the company should be linked to an Interest Template. When interest proposals are entered, they are linked automatically to the appropriate customer template, but the interest template linked to individual invoices/installments can be changed in the Reminder/Interest Info per Customer Invoice window. However it is not possible to mix the interest templates for which the specified interest method is WhenPartlyPaid with those interest templates for which the specified interest method is either WhenFullyPaid or WhenDueForPayment, by assigning different interest templates for the installments of the same invoice. Invoices can be exempted from interest proposal if they are linked to an Interest Template where interest is not to be calculated. The templates provide information and instructions on how interest proposals should be written. If the customer, for example, belongs to a corporation that handles all or most of the payments for the corporation members, interest invoices can be sent to that other payer instead of the customer. This is set up in Customer.

There are functions for creating and printing interest proposals based on customer invoices that are due for payment or paid too late. To get an overview, you can produce an interest proposal that is edited before an invoice/note is printed and a voucher created. The system handles three methods of how interest can be calculated:

• WhenFullyPaid
  When this method is selected, the interest proposal will only include invoices which are fully paid. The interest will be based on the total invoice amount.

• WhenDueForPayment
  This method involves calculating interest for an invoice as soon as the due date has elapsed. This method allows an invoice to be included in more than one interest proposal.

• WhenPartlyPaid
  This method allows interest to be calculated for invoices which are partly paid. Interest is calculated separately for each partial payment.

The system allows you to create, delete or modify the interest proposal created. You can exclude customers or individual invoices/notes from the proposal. The Interest Proposal process also has the operations Print Proposal and Print Interest Invoices/Notes. You can specify in the Company/Payment/General tab window whether interest invoices/notes should be posted when it is printed. When the interest invoice/note has been printed, a voucher is created to the hold table in IFS/Accounting Rules if it specifies that invoices/notes should be posted when printed. If you have specified otherwise, you can post the invoices/notes later after it is printed. It is possible to reprint an interest invoice/note via Info Service/Print Manager if necessary or by using the Customer Interest Invoices/Notes window. The reprinting does not create any system effects; only a physical paper is printed.

Before you start entering information check that Basic Data Required (BDR) has been set up as per instructions in Define Financials Basics, the Set up Basic Data Customer Credit Management process.