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Interest Calculation - List by Documents
Interest Calculation - List by Documents
Interest Calculation - List by Documents
In comparison to custom calculation you cannot enter principals in the panel
for calculating default interest by documents but they are read out
from the selected account card. The calculation is carried out based on
individual linked document. That is why any partial payments or all
changes made to the principal within the interest-bearing period appear in the calculation. The interest are calculated from due date (excluding the
very date) till the date of payment: interest are not calculated for the due
date.
Interest are calculated (similarly, as in custom calculation) based on
interest rates that have been entered in the panel for setting up interest
rates.
For a more detailed treatment of methods used in calculating interest see:
General
|
Account
|
Enter account from which the principal and interest transactions are
read.
It is by default the first customer account that can be found in
parameters (Administration Panel |
Settings | Program Parameters | Financials | General).
| Calculation Type
| Select type of
calculation to be used (that is, you are offered one):
- Customer - to calculate interest on receivables from
customers
- Supplier - to calculate interest on payables to suppliers
| Subject
|
Restrict the report by individual subject.
| Type of Interest Rate
| Open the
interest rate table containing data on corresponding rates (see
setting up interest rates).
See
 Use
Interest Rate from Subject.
You cannot leave the field empty. You must enter it even in case you
use interest rate frin Subjects register. Otherwise, an error is
returned (see The type of interest rate must be
specified!).
| Subject Type
|
Restrict the report by individual subejct type.
| Linked Document
| If required,
restrict the report by individual linked document.
| Document
|
If required, restrict the report by individual document.
| Currency
| The currency
set is by default the primary currency from
program parameters .
| Min. Amount (per
Doc./ per Subject)
|
Exclude the amounts smaller than the one entered here from interest
calculation. The value is by default set to "-1" meaning
that this restriction will not be used.
Example: If you enter »100«, interest calculations of those documents where
calculated interest are smaller than 100 euro, will not be displayed.
| Grace Period
| Exclude the
amount from interest calculation on which interest will be
calculated only for as many (or less) days as set in the field. The
value is by default set to "-1" meaning that this
restriction will not be used.
Example: If you enter »5«, interest calculations of those documents where
interest are calculated for 5 or less days will not be displayed.
| Nominal Int. Rate
|
Here you can enter the nominal (annual) interest rate to be used
INSTEAD of the once from the table (see
interest rates) . It is suitable for example when you try to
calculate interest on receivable or payable using the entered
revaluation interest and a fixed annual interest rate. For sake of
this you need not create a new interest table:
for example, use revaluation interest that can be found in default
interest table and just enter the fixed annual nominal interest
rate.
The value is by default set to "-1" meaning that nominal interest
rates from the table of interest rates are used. |
Overpayments and Prepayments
They are dislplayed for the same linked document. However, it must be
specified how are they to be displayed in the interest calculation. If
overpayment/prepayment is related to the same linked document, it
affects the amount of principle, on which interest are being calculated.
Whether interest are calculated on the amount, or not, and in what way
does it in the end affect the total interest calculation may in
practical use be agreed between the contractual parties. For examples
see Prepayments and Overpayments.
|
 Show Overpayments
|
The amount of prepayment/overpayment is displayed in a separate line of
interest calculation together with the date. this way it is not marked
whether interest will be calculated on prepayments/overpayments, or not!
to do so check the field:
- overpayment - If the invoice was settled in the amount greater than
the one issued in receivable
- prepayment - If the invoice was settled with prepayment and having
closed prepayments, in this way ensuring that prepayment amount is
assigned the same linked document number.
When closing prepayments select the date from which on you want to
calculate interest as the journal entry date!
|
 Calculate Overpayment Interest
| The interest on
prepayment/overpayment will be calculated in negative amounts, thus
deducting them from the total amount.
|
 Decrease Principal by
Overpayment Interest
|
It is not wise to check it when using the variable interest rate (proportional
method)!
The calculated negative interest on overpayment/prepayment will be
deducted from the principal.
|
 Show Actual Due Dates
| Because the due date
is not considered as belonging to the interest-bearing period, the interest
calculation report displays the first day following the due date.
If checked, the report nontheless displays interest-bearing period including
due date.
See example of a document 345 with due date on January 1st, 2000
and the payment settled on February 5th, 2000:
- If checked, displays "1.1.2000 to 5.2.2000" as the interest-bearing
period.
- If left unchecked, displays the actual period for which you
calculate interest, that is "2.1.2000 to 5.2.2000"
|
 Use Interest Rate from Subject |
If you entered an interest rate to be used in calculating default interest
on payments in Customers register (in case you
selected Customer for the type of calculation) or
Supplier
((in case you selected Supplier for the type of calculation)
the interest will be calculated in the following way:
- If checked,, the interest rate table from the Subjects register will
be used. But if you have not entered any interest rate table, data
from the Types of Interest Rates
and Nominal Int. Rate
fields are used.
- If unchecked, data from the Types of Interest Rates
and Nominal Int. Rate
fields are used.
|
Other
|
Add Interest to Principal
| It is wise to
use these checboxes only in fixed intererst rate (conforming)!
In some contract clauses it is specifed that interest are calculated on
a monthly basis; but they are NOT added to the principal in the next
interest-bearing period. In such cases you can select that revaluation
or real, or both types of interest will not be added to the principal.
- Add Reval. Interest -
It is checked by default. Revaluation interest will be added to th
principal in the next interest-bearing period.
- Add Real Interest -
It is checked by default. Real interest will be added to the principla
in the next interest-bearing period.
| Document Status
| Select among the following:
- Open– When calculating interest on outstanding items.
- Closed– When calculating interest on closed items. In
accordance with the explanation given by the professional public it is
the most adequate method used in calculating default interest.
- All - When you want to calculate interest on all documents
|
Interest-bearing Period
| Overdue/paid/finished (From - To)
| Enter date margins of the
interest-bearing period. They are applied in different ways,
according to the document status you selected:
- for documents with the Open status - The entered date margins
represent document due dates (from-to). The interest are calculated for
documents matching the selected criteria, and that is, ONLY for the
selected period (from-to). Using this method of calculation you must
select the first day of the month in the date from field and the last
day of the month in the date to field.
- for documents with the Closed status - The entered date
margins represent payment dates, that is, dates when the document was
closed. Here calculating interest shows interest from documents matching
the selected criteria, that is, for the ENTIRE linked document from due
date till the date on which it was closed.
- for documents displayed after having selected the All status -
the date margins represent
- due dates for open documents
- payment dates, that is, dates on which documents were closed for
closed documents
Here calculating interest shows interest from documents matching the
selected criteria, and that is, ONLY for the selected period (from-to).
Using this method of calculation you must select the first day of
the month in the date from field and the last day of the month in
the date to field.
|
 Calculate Interest for Closed Lines
| If you try to calculate
interest for closed documents or those when having selected All, a
question arises whether default interest should be calculated on
default interest for the period from the day when the document was
closed till the end of the of the period incuded in the report
(date TO).
- If checked, default interest will be calculated on default interest
from the day when the document was closed till the date from the To
field.
- If unchecked, default interest will be calculated only till the day
on which the document was closed (It is suitable for calculating default
interest).
|
 Calculate Lines without
Subject |
Typically, interest are calciulated on subject accounts where a
subject is specified. That is, it is required you set it in line of
posting and closing.
To calculate default and contract interest on accounts where the
subejct is not specified (that is, they are not subject accounts)
check a corresponding checkbox so that interest are calculated for such
records as well. Such as for example calculation of default interest on
overdue unpaid liabilites to state. There is one condition, though, and
that is the linked document of post and its subsequent closing must be
entered accordingly.
| Report Type
|
Interest can be calculated in various different ways:
All the above-mentioned examples include interest calculatated for
closed documents using conform interest rate!
|
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See Taskbar for a general
description of its functions.
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