Debtor Overdue Charges - Fixed Interest amount

Modified on Tue, 21 Apr at 8:19 AM

TABLE OF CONTENTS

Summary
End Result
Method
Considerations

Summary

This article explains how to configure Synergetic to calculate a fixed interest on Debtor overdue balance. This method does not take into account any payments made by the debtor and does not adjust the interest amount.

End Result

This configuration will calculate interest on the over due balance from the date considered overdue but will not take into consideration any payments that have been made.

Method

In Debtors > Debtor Maintenance > General Tab each debtor who is eligible to have interest charged needs to have the 'Allow Interest to be charged' Flag ticked
In Finance Configuration, You need to set a Days Between Letters 1: - This is the amount of days from when the statement is run to when it becomes over due. For example the statement is run on September 1, it becomes overdue on Sept 20 - So you would set this to 20 days - You can ignore the remaining days as for this scenario the additional fields are not needed

Then in Debtors > Debtor Overdue Charges

You need to complete the following fields

Minimum balance
Statement group / Student Campus (you can leave this blank if you wish to include all)
Charge Type - Interest
Annual Interest Rate
Charge Interest From: To: Dates
Fee Code

The amount of interest that is charged per day is the annual amount divided by 365, divided by 100

Considerations

This method will NOT take into account any payments made between running the overdue charges. If you wish it to take into account daily balances then please use https://help.synergetic.net.au/s/article/Debtor-Overdue-Charges-Interest-Calculated-Daily