Use this region to enable Automatic Interest Calculation and then enter defaults, such as expense and liability accounts, for the interest invoices Payables creates automatically when you pay overdue invoices.
Allow Interest Invoices. Enable this option if you want to allow Payables to calculate interest for overdue invoices and create interest invoices for selected suppliers. Payables automatically creates interest invoices when you pay overdue invoices in a payment batch or with a Quick payment. If you pay an overdue invoice using a manual payment, Payables warns you that interest is due on the invoice and you should pay the invoice in a payment batch or with a Quick payment.
If you enable this option, the setting of the Prorate Across Invoices option on the Accounting Option region indicates how you want Payables to account for interest invoices.
When you enable the Allow Interest Invoices Payables option, Payables enables the Allow Interest Invoices option in the Payment Region of the Suppliers window for all new suppliers you enter. You can override this default value at any time. If you do not enable the Allow Interest Invoices Payables option, you cannot enable the Allow Interest Invoices option in the Suppliers window.
Minimum Interest Amount. If you enable the Allow Interest Invoices option, you must enter a value in this field that represents the minimum interest amount Payables will pay. If the calculated interest amount is less than this amount, Payables does not create an interest invoice.
Note: Because interest payments compound every thirty days, we suggest you pay interest when it is due, rather than allowing it to compound. Set the minimum interest amount low enough so that your interest does not compound, but not so low that you pay very exceedingly small amounts of interest on past due invoices.
Expense Interest Invoice Account.
If the Prorate Across Invoices option on the Accounting Option region is disabled then when Payables creates an interest invoice it creates a single distribution with this account.
If the Prorate Across Invoices option is enabled then Payables uses the natural (charge) account from the account you enter here when it builds expense accounts for an interest invoice.
Liability Interest Invoice Account. If you enable the Allow Interest Invoices option, you must enter a liability account. Payables uses this account as the liability account when it creates accounting entries for interest invoices. This liability account is always used when interest invoices are automatically created during the payment process. Payables does not overwrite the liability account if you use Automatic Offsets. See: How Payables Builds the Offsetting Liability Accounts.
The following section is applicable to customers who use transaction codes. Transaction codes are typically used by US Federal Government customers to produce both proprietary and budgetary entries for a given transaction.