Setup Interest Calculation Profiles

TABLE OF CONTENTS

• Introduction
• Calculating Interest on Overdue Balances/Applying Discounts to Accounts in Credit
• Calculating Interest on a Per Invoice Basis

Introduction

Interest on overdue balances and discounts on credit balances can be calculated within Engage Fees as can interest per outstanding invoice depending on the Charge Interest per Invoice setting in Fees>Set Up>Fees Policies.

Calculating Interest on Overdue Balances/Applying Discounts to Accounts in Credit

1. Select the New icon to open a blank Interest Calculation Profile pane.

2. Enter a Profile description.

3. Enter an annual % rate in Interest Rate for interest calculations on outstanding account balances.

4. Enter an annual % rate in Discount Rate for interest due to Bill Payers on credit balances.

5. Select the Nominal Code and Cost Centre (if required) from the drop down options.

6. Select Save .

7. You must link the new profile to a Bill Payer account in Fees>Setup>Parent Defaults before you can use it in the Fees>Invoices>Raise Interest Invoices screen to calculate interest or discounts on account balances.

Note: You can have a single profile that manages both Interest and Discount rates, but it may be easier to have separate Interest Calculation Profiles for outstanding accounts balances and credit balances for advance fees.

Calculating Interest on a Per Invoice Basis

You create new Interest calculation profiles as per the standard screen but have the additional following options:

1. Flat Rate Charge - when this is ticked a flat fee is charged per overdue invoice, rather than a percentage of the o/s balance

2. Pro Rata – when ticked, the flat rate charge is applied based on the percentage of the invoice that is outstanding on the due.

3. Interest Charges X days after invoice due date – this gives the option to give a grace period before applying the interest charge.

4. Include [Automated / Manual invoices] – these tick boxes allow you to select whether the interest charge is applied to automated or manual invoices, or both.

5. Raise per contact [Single Invoice / One Invoice per Invoice] – where the contact has multiple invoices becoming overdue in the selected date range, you can select whether a single interest invoice is raised to cover interest charges for all the outstanding invoices, or whether one interest invoice is raised per overdue invoice.

For more information on working with Interest Calculation Profiles and linking them to Bill Payer Accounts, please see the Engage Fees Setup guide. For more information on raising interest invoices, please see the Engage Fees Billing guide, Invoices section.