Create Interest Invoices

Pear Tree
2017-08-23 15:34


1.     Go to Finance->Receivables->Update->Collections

2.     Enter how old (in days) an invoice has to be before you charge interest on it (default is 30 days)

3.     Click the Days from Due Date checkbox if you want to calculate overdue invoices based on their due date, or click the Invoice Date checkbox if you calculate overdue invoices based on their invoice date.  (default is Invoice date).

4.     Enter an interest rate.  For example, enter 2% interest as 2.

5.     Enter an invoice date for the interest invoices.  This date is used with the number of days in step 2 to calculate which invoices are overdue.  Usually it would be the month end date.  

6.     Click on Get/Refresh. It will create a list of customers who have overdue invoices according to the information you entered in steps 2, 3 and 5, and show you the interest amount for each customer





7.     Click the x to the left of the customers you DON’T want to charge interest

8.     Click the Print or To Excel buttons for a preview of the interest amounts.

9.     Click the Create Int. Invoices button





10.  Now enter a prefix (for example INT) for the interest invoice numbers

11.  Enter a product (optional – for example INTEREST)

12.  Enter a description (for example INTEREST ON OVERDUE ACCOUNT)

13.  Enter a tax treatment (usually E for exempt)

14.  Enter a sales/income General Ledger account to post the invoices to

15.  Enter additional comments if desired






16.  Click the Create Invoices button

17.  When the process is complete, you will see a message indicating how many invoices were created.



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