AR Interest Calculation

How does AR calculate interest? Our Company Profile is set up to charge interest on Overdue balance 31 days overdue at 21% annually (screen shot attached).

Yet a customer with an overdue balance of $392.96 was charged $6.78 interest. (screen shot attached).

My calculations are $392.96 x 1.75% = $6.88. How is AR coming to $6.78?

Susan:

You need to include a screen shot of your Create Interest Batch dialogue plus let us know when was the last time you created an interest batch. I can come up with $6.78 by;

$392.96 x 21% / 365 days in year x 30 days in November = $6.78

You got it.. thanks!