Would like to know how the system calculate the interest charged to customer.

Invoices are due on the invoice date. Interest will be not be charged if payment made within 14 days. Interest will be charged from the 1st day of invoicing if payment made after 14 days or later.

If invoices dated 1/4/2002, and due on 15/4/2002, system does not calculate interest when we run
the "create interest batch" on 25/4/2002.

Please advice

Thanks & rgds

18022000

Hello 18022000!

In Adagio Receivables, in the Company Profile - System Options - Interest Charges section, there are fields to enable you to charge interest when appropriate for your business.

For you purposes, you would select:
"Charge interest on" <Overdue invoices> for overdue accounts.

"Charge interest on accounts" <15> day(s) overdue.

"Minimum interest charge" < > (Enter what you would charge here)

"Annual interest rate" < > (Enter what the annual interest rate would be)

"Invoice - Prefix" <INT-> (You can change the default of "INT-" to whatever you want to use)

"Compound interest?" (If you want interest to be calculated on 'overdue' interest, check this box)

"Round up to minimum?" (Based on what you have entered as the "Minimum interest charge", checking this option would round the interest up to the minimum if it was less)

"Sequence number" < 1> (You can change the default, but this is the logical starting point)

Once you have entered the required information on this screen, interest should be calculated as you expect, HOWEVER - how interest is calculated will also depend on what 'Terms' code your Customers are setup for. Based on the information you have given, you should be using a Terms code with a 'Specific number of days' of 0. Working with the interest set up to calculate when '15' days overdue should give you the desired results.

Regards,