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<ManualTopic ID="/baanerp/tf/onlinemanual/000031" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Interest calculation on overdue invoices</Title>
		<Keyword><Level1>Interest calculation on overdue invoices</Level1>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>You can generate <Link href="/baanerp/ci/glossary/glossary#000015" role="glossary">interest invoices</Link> for overdue invoices as described in <Link href="/baanerp/ci/onlinemanual/000013" role="manual">To process interest invoices</Link>. In addition, after generating and sending an interest invoice, you can generate a subsequent interest invoice for the next period.</Paragraph>
		<Paragraph>In the <GUIRef href="/baanerp/tf/acr/tfacr5102m000" role="session">Interest Percentages (tfacr5102m000)</GUIRef> session you can define the interest percentages for each <Link href="/baanerp/tf/glossary/glossary#FinancCustom.tf" role="glossary">financial business-partner group</Link>, and for different periods of days.</Paragraph>
	</GeneralSection>
	<GeneralSection><SectionTitle>The interest period</SectionTitle>
		<List><ListIntro>For an interest invoice, SSA ERP calculates the interest amount over a specific period. SSA ERP determines the number of days of this period as follows:</ListIntro>
			<ListItemHead>The start date</ListItemHead>
			<ListItem><List><ListItem>If interest invoices were already generated earlier, the start date is the end date of the most recent period for which the interest was calculated. for each open entry, SSA ERP records the date on which an interest invoice advice was last transferred to <GUIRef href="/baanerp/ci" role="package">Central Invoicing</GUIRef>.</ListItem>
					<ListItem>If no interest invoices were already generated, the start date is the due date of the invoice or the planned receipt date of the transaction schedule line.</ListItem>
				</List>
			</ListItem>
			<ListItemHead>The end date</ListItemHead>
			<ListItem><List><ListItem>For documents of the <GUIRef href="/baanerp/tf/domains/acr.trec#invoice" role="enum">Sales Invoice</GUIRef> type, the end date is the <GUIRef href="/baanerp/tf/acr/tfacr5210m000#as.on.date" role="formfield">Interest As on Date</GUIRef> date entered in the <GUIRef href="/baanerp/tf/acr/tfacr5210m000" role="session">Select Invoices for Interest Invoicing (tfacr5210m000)</GUIRef> session.</ListItem>
					<ListItem><List><ListIntro>For documents of the <GUIRef href="/baanerp/tf/domains/acr.trec#normal" role="enum">Normal Receipt</GUIRef> and the <GUIRef href="/baanerp/tf/domains/acr.trec#assignment" role="enum">Assignment</GUIRef> type, the end date is the earliest of the following dates:</ListIntro>
							<ListItem>The document date.</ListItem>
							<ListItem>The <GUIRef href="/baanerp/tf/acr/tfacr5210m000#as.on.date" role="formfield">Interest As on Date</GUIRef> date entered in the <GUIRef href="/baanerp/tf/acr/tfacr5210m000" role="session">Select Invoices for Interest Invoicing (tfacr5210m000)</GUIRef> session.</ListItem>
						</List>
					</ListItem>
				</List>
			</ListItem>
		</List>
	</GeneralSection>
	<GeneralSection><SectionTitle>Interest calculation</SectionTitle>
		<Paragraph>The interest amount is calculated in the invoice currency. The general formula to calculate interest amounts is:</Paragraph>
		<Paragraph>Interest amount = invoice amount * (payment date - due date)/365 * )interest %)/100</Paragraph>
		<Paragraph>For receipts and for the paid part of partly paid invoices, this results in the following calculation:</Paragraph>
		<Paragraph>Interest amount = Paid invoice amount * actual interest rate on the payment date / number of days in year * (receipt date - due date or previous interest calculation date)</Paragraph>
		<Paragraph>For unpaid invoices, this results in the following calculation:</Paragraph>
		<Paragraph>Interest amount = Open invoice amount * actual interest rate on the interest invoice date / number of days in year * (interest invoice date - due date or previous interest calculation date)</Paragraph>
		<List><ListIntro>Depending on the value of the <GUIRef href="/baanerp/tf/acr/tfacr5101s000#tfacr501.isel" role="formfield">Int Inv Sel Based On</GUIRef> field inthe <GUIRef href="/baanerp/tf/acr/tfacr5101s000" role="session">Interest Invoice Parameters (tfacr5101s000)</GUIRef> session, SSA ERP calculates the interest on the receipt amounts, on the remaining open invoice amount, or both, as follows:</ListIntro>
			<ListItemHead><GUIRef href="/baanerp/tf/domains/acr.isel#fully.paid" role="enum">Fully Paid Invoices</GUIRef>
			</ListItemHead>
			<ListItem>SSA ERP calculates the interest on the receipt amounts.</ListItem>
			<ListItemHead><GUIRef href="/baanerp/tf/domains/acr.isel#partly.paid" role="enum">Partly and Fully Paid Invoices</GUIRef>
			</ListItemHead>
			<ListItem>SSA ERP calculates the interest both on the receipt amounts and the remaining open invoice amounts.</ListItem>
			<ListItemHead><GUIRef href="/baanerp/tf/domains/acr.isel#paid.unpaid" role="enum">Paid and Unpaid Invoices</GUIRef>
			</ListItemHead>
			<ListItem>SSA ERP calculates the interest both on the receipt amounts and the open invoice amounts.</ListItem>
		</List>
		<Paragraph>All received payments and <Link href="/baanerp/tf/glossary/glossary#CreditNotes.tf" role="glossary">credit notes</Link> are considered to determine the remaining open amount of the sales invoice. Once the remaining open amount is equal to zero no further interest is calculated.</Paragraph>
	</GeneralSection>
	<GeneralSection></GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/tf/onlinemanual/000412" role="manual">Examples of interest calculation for overdue invoices</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/ci/onlinemanual/000013" role="manual">To process interest invoices</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tf/onlinemanual/000105" role="manual">Due date calculation</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
