We are looking to implement Interest on overdue Customer invoices. The "Compound Interest" method on the Interest Template does not seem to mean what we would expect. Has anyone used Customer Interest templates and have any feedback? Thank you
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We haven’t done this, but are looking to do the same thing. We want to charge a “monthly” compounding interest. I created a case with IFS and reached out to one of their consultants. Not sure if you ever got anywhere with this...
Hi,
Interest Invoicing is really easy. Update (or create new is probably better) the interest template such that will calculate interest as intended. Make sure that template is on the customer.
Assuming you’re in TEST (and always test in TEST), enter a large value instant invoice with a very old date. (old enough such that it will calculate interest).
Then run the interest invoice proposal. You will see a selected customer, and then see the related interest calculation.
If you created a “new” interest template be aware the old invoices are connected to the old template.
Usually we have different templates for good customers / bad customers with different rates. For the old invoices you can reassign the old invoices to a revised template.
The process is pretty easy. Just remember when an invoice is created the template assigned to the customer is then assigned to the invoice. If the default template is set to “not” charge interest, then you may not get interest on those old invoices (until the invoices are updated with the revised template).
Hope this helps,
Best regards,
Thomas
Yes I can get the general concept to work but any interest charges on a customer’s account does not get charged interest if it’s overdue. ie: interest on interest
In the customer analysis form you can ‘Simulate” interest and see there that the “interest charge” entry gets “interest” charge but it doesn’t show up if you actually run the job.
I logged a call with IFS on this and still haven’t heard back anything.
OK my bad. You want to calculate interest on existing interest invoice (I believe). Yep that’s not as easy. Honestly, I’ve never come across that requirement, My clients are mainly in US but most have sites around the world.
I did a quick test and your very correct the IR is not picked up for interest on interest. Did not see any settings that would do that. Still looking. I do remember some “local” requirements - don’t remember if that was Brazil or India / reading something about this.
What version are you using?
We are on version 9 update 17. I thought when I tested it on version 9, update 9 it worked but could be mistaken. It’s just strange it calculates in the “simulation” option of the customer analysis form but not on the actual interest job? It is common practice in Canada (our other ERP system performs this). Had wondered if I had set up something incorrectly. Thank you Thomas for your feedback! Appreciate it.
I created an IFS case for this type of request and I am on IFS10 UPD 6. It is still not an option and not currently an option. I am trying to get them to add it in a future version as I am also in need of this requirement. We customized the calculation ourselves to do it in the API. The API is Inetest_rates_API.Calculate_formula.
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