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This program raises interest on arrear balances due by debtors, which are run in the Open Item debtors environment.

 

Interest is calculated based on the relevant interest rate, the outstanding balance at the selected date, and considering the terms allowed to the debtor.  The rate and terms are setup on Debtors Master File .

 

The balances on any period earlier than allowed terms, will be charged interest as above.  Any payments received beyond the terms of the relevant invoice, but applied to that invoice bringing the balance on that period to zero, will attract interest and be described in the batch as late payment interest.

 

Eg. If the requested period is Oct, 2001, and the debtors terms are 30 days, interest will be calculated on any balances in periods prior to and including August 2001.  October would be current, and September 30 days.

 

The program will produce an on screen schedule showing the debtors account number and the amount of interest, which can be printed by pressing 'Ctl F'. On 'Esc'aping from the schedule, you will asked if you would like to build a batch.  If 'Y' is selected, a Standard Journal Batch will be produced.  More details of the calculation of the interest will be included on the description lines of the batch. Call the batch up, by using it's number, in the Standard Journal Batch screen, and post it.