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<ManualTopic ID="/baanerp/tf/onlinemanual/000031" xml:lang="en">
   <Header>
      <Title>Interest calculation on overdue invoices</Title>
      <Keyword type="header" order="d1e1663476">
         <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">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, LN calculates the interest
		  amount over a specific period. LN 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, LN records the date on which an interest invoice advice
				was last transferred to <GUIRef href="/baanerp/ci" role="package">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="option">Sales Invoice</GUIRef> type, the end date is the <GUIRef href="/baanerp/tf/acr/tfacr5210m000#as.on.date" role="manual">Interest As on Date</GUIRef> date entered in the <GUIRef href="/baanerp/tf/acr/tfacr5210m000" role="session">Select Inv.-to BP Receipts for Interest Invoices (tfacr5210m000)</GUIRef> session.</ListItem>
               <ListItem> 
                  <List>
                     <ListIntro>For documents of the <GUIRef href="/baanerp/tf/domains/acr.trec#normal" role="option">Normal Receipt</GUIRef> and the <GUIRef href="/baanerp/tf/domains/acr.trec#assignment" role="option">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="manual">Interest As on Date</GUIRef> date entered in the <GUIRef href="/baanerp/tf/acr/tfacr5210m000" role="session">Select Inv.-to BP Receipts for Interest Invoices (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="manual">Int. Inv Selection Based On</GUIRef> field inthe <GUIRef href="/baanerp/tf/acr/tfacr5101s000" role="session">Interest Invoice Related Data (tfacr5101s000)</GUIRef> session, LN 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="option">Fully Paid Invoices</GUIRef>
         </ListItemHead>
         <ListItem>LN calculates the interest on the
		  receipt amounts.</ListItem>
         <ListItemHead>
            <GUIRef href="/baanerp/tf/domains/acr.isel#partly.paid" role="option">Partly and Fully Paid Invoices</GUIRef>
         </ListItemHead>
         <ListItem>LN 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="option">Paid and Unpaid Invoices</GUIRef>
         </ListItemHead>
         <ListItem>LN 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/>
   <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">Interest invoices</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000105" role="manual">Due date calculation</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>