AR-D  Charge Interest on Invoices

Purpose of Program

Use this program to create interest charges, in the form of AR line items, for those customers who have overdue invoices.  Only customers marked Y in the Charge Interest? field of the customer record (created using AR-A, Enter Customers) are processed by this program.

Use this program to add in interest charges before printing financial statements or customer statements.  Interest will only be calculated on overdue days past the invoice due date, which is determined by the terms code assigned to each invoice.  Interest will be charged for the number of days since the last time the program was run

NOTE: If you want a hard copy invoice of any finance charges generated by this program, you can do so via SO-F  Print Invoices when printing in reprint mode.

General Program Operation

The date will default to the current date, but you may enter a different one.  As each customer is checked, the appropriate code will be displayed on the screen.  No other action is required and the program will automatically create the appropriate interest line items.  The program chooses which customers to charge depending on whether Charge Interest? is set to Y in the customer file.  Make sure that you have first set up the appropriate GL Account for interest in AD-A  General Ledger Defaults  and the interest rate and the number of days until delinquent in SD-P  Accounts Receivable Defaults

Creating interest line items for your customers automatically updates the next invoice number, updates the invoice balance in the customer file, adds finance charge records to the AR transaction file, creates an invoice header and line item records in the invoice history file, and posts to the General Ledger and the Sales journal.