Calculate interest and create interest notes

  • Article

Important

This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Use these procedures to calculate interest with or without creating interest notes. You can use the second procedure to create interest notes that have fees but that do not calculate interest.

Calculate interest and create interest notes

Use this procedure to calculate interest using the Interest calculation form, and then create interest notes using the Interest note form.

  1. Click Accounts receivable > Periodic > Collections > Interest calculation.

  2. Select the types of transactions to calculate interest for and the transaction dates to include.

  3. In the Use posting profile from field, select one of the following options:

    • Account – Use the posting profile that is assigned to the customer account for each interest note.

    • Select – Use the posting profile that you select in the Posting profile field. Be sure to select a posting profile that has the Interest check box selected on the Table restrictions FastTab and that has an interest code assigned on the Setup FastTab in the Customer posting profiles form.

    • Transaction – Use the individual posting profile from transactions on which interest is calculated for each interest note. Transactions that do not have an assigned posting profile will use the posting profile that is specified in the Ledger and sales tax area of the Accounts receivable parameters form.

      Note

      If the Public sector configuration key is selected, interest will be calculated for each invoice line instead of for the whole invoice.

  4. Click OK. Interest is calculated and interest notes are created.

Create interest notes that have fees but that do not calculate interest

Use this procedure to create interest notes that have a fee but that do not calculate interest. For example, you might charge a fee every time that you send interest notes to remind customers of overdue charges that they owe. This lets you charge fees without also calculating new interest charges.

Create an interest code and a posting profile

The following setup steps can be omitted if they have already been completed:

  1. Open the Interest form and create an interest code that can be used to create interest notes that have a fee but no interest. For more information, see Set up interest rates for an interest code.

    Include the following details:

    • Select an interest type of Single rate.

    • On the Earnings tab, in the Calculate interest every field, select Calendar day and enter 1.

    • Select an account in the Ledger posting debit field. This identifies the general ledger account where the interest earnings will be posted.

    • Leave the Monthly interest % field blank.

    • Select a fee account where the fee will be posted to.

    • Enter the amount of the fee in the Fee in currency field.

    • On the Payments tab, select an account in the Ledger posting credit field. This identifies the general ledger account where interest payments will be posted.

  2. Open the Customer posting profiles form and create a customer posting profile that can be used to create interest notes that have a fee but no interest. For more information, see Customer posting profiles (form).

    Include the following details:

    • Do not select the Interest check box on the Table restrictions FastTab.

    • On the Setup FastTab, select an account code and a summary account.

    • Select the interest code that you created in the Interest form.

Create free text invoices

Use the Free text invoice form to create free text invoices for the customers to whom you want to charge a fee. Post the free text invoices that you create. For more information, see Free text invoice (form).

Create interest notes that have fees but no interest

  1. Click Accounts receivable > Periodic > Collections > Interest calculation.

  2. Select the Invoice check box on the General tab.

  3. Enter from and to dates.

  4. Select Select in the Use posting profile from field.

  5. Select the posting profile that was created for interest notes that have a fee but no interest.

  6. Click Select to select the customers to charge a fee to.

  7. Click OK to create the interest notes.

Print and post the interest notes

  1. Open the Interest note form and select the interest notes that you created.

  2. Click Print to print the interest notes. Interest notes must be printed before they can be posted.

  3. Click Post to post the interest notes. For more information, see Interest note (form).

Calculate interest without creating interest notes

Use this procedure to calculate interest without creating interest notes. This is helpful if you want to view the current interest amount without generating an interest note transaction.

  1. Click Accounts receivable > Common > Customer invoices > Customer invoices due today.

    –or–

    Click Accounts receivable > Common > Customer invoices > Customer invoices past due.

  2. On the Action Pane, on the Open customer invoice tab, click Calculate interest, and then select one of the following:

    • Customer – Calculate interest for all open invoices for the selected customer.

    • Invoice – Calculate interest for only the selected invoice.

  3. Select the types of transactions to calculate interest for and the transaction dates to include.

  4. In the Use posting profile from field, select one of the following options:

    • Account – Use the posting profile that is assigned to the customer account for each interest note.

    • Select – Use the posting profile that you select in the Posting profile field. Be sure to select a posting profile that has the Interest check box selected on the Table restrictions tab and that has an interest code assigned on the Setup FastTab in the Customer posting profiles form.

    • Transaction – Use the individual posting profile from transactions on which interest is calculated for each interest note. Transactions that do not have an assigned posting profile will use the posting profile that is specified in the Ledger and sales tax area of the Accounts receivable parameters form.

      Note

      If the Public sector configuration key is selected, interest will be calculated for each invoice line instead of for the whole invoice.

  5. Click OK. Interest is calculated, but no interest notes are created. The result of the calculation is displayed in the Unposted interest field on the list page.

    Note

    The amount that is displayed in the Unposted interest field is temporary. When you close the list page, the value in this field returns to zero.

Create interest notes

Use this procedure to create interest notes.

  1. Click Accounts receivable > Periodic > Collections > Interest calculation.

    –or–

    Click Accounts receivable > Common > Customer invoices > Open customer invoices. On the Action Pane, on the Open customer invoice tab, click New interest note, and then select Customer or Invoice.

  2. Enter values in the fields in the Parameters section to define the transaction type and the due date limits to create interest note proposal lines for. You can also indicate a round-off value, and specify a posting profile or customer posting profile to determine the interest rate code. For more information, see Interest calculation (class form).

  3. Click OK. The lines that fulfill the criteria that you selected in the Interest calculation form are created as interest note proposal lines in the Interest note form.

  4. Click Accounts receivable > Periodic > Collections > Interest note.

    –or–

    Click Accounts receivable > Common > Customer invoices > Open customer invoices. On the Action Pane, on the Open customer invoice tab, click Print or post interest notes.

  5. Edit the proposal lines in the Interest note form.

  6. When you are satisfied, print and post the lines that you want to send as interest notes to customers who have overdue accounts.

  7. To view created, canceled, and posted interest notes, use the Interest journal form. (Click Accounts receivable > Inquiries > Collections > Interest journal.)

To review and print interest notes, select the note, and then click Print in the Interest note form. (Click Accounts receivable > Periodic > Collections > Interest note.)

Post interest notes

To post an interest note, select the note, and then click Post in the Interest note form. (Click Accounts receivable > Periodic > Collections > Interest note.)

(DNK) Generate and print an interest note that has a payment slip

You can print a payment slip to include the invoice number as the payment ID. To generate and print an interest note that has a payment slip, open the Interest note form. (Click Accounts receivable > Reports > External > Interest note.) Select a payment slip, and then select one of the following options:

  • None – No payment slip is printed. Select this option if the payment amount is in a currency other than Danish kroner (DKK).

  • FIK 751 – Print an FIK 751 payment slip if you intend to manually write the payment amount and due date on the payment slip.

  • FIK 752 – Print an FIK 752 payment slip if you intend to use a computer-generated payment slip that has a preprinted payment amount and due date.

See also

Interest calculation (class form)

Set up interest calculations

(DNK) Set up a payment slip format for customers