Select Interest Criteria Single Dialogs Workspace

Use this workspace to create interest charge selections that you can apply to company-specific customers.

You can only specify one interest charge selection per customer at a time. You can also use the Change Interest Charge Selection workspace to create an interest charge selection for a specific customer or to customize an existing selection for a specific customer.

The procedure for interest charge selection is as follows:

1. Create and print an interest charge selection. You create interest selections for individual company-specific customers in this workspace. If you only need to create an interest charge selection for one company-specific customer, you can also do that in the Change Interest Charge Selection workspace.
2. Review the selection and adjust it, if needed, for the individual customer in the Change Interest Charge Selection workspace. You can remove the interest charge if you do not want to send an interest note.
3. Approve the interest selection from the Change Interest Charge Selection workspace for one customer, or approve interest criteria for a group of customers. When you perform the approval, the interest charge notices are printed in the Approve Interest Selection workspace.

The interest charge policy that you establish here is general; you can adjust it for individual customers in the Change Interest Charge Selection workspace. Maconomy does not create a posting journal-with interest charge entries to the Accounts Receivable and General Ledger-until you approve the interest in the Approve Interest Selection workspace.

Maconomy calculates interest charges using the following principle:

• "Net" means that Maconomy calculates interest charges from a given percentage rate, regardless of how long the entry has been due for payment.
• "EOM" means that Maconomy calculates interest charges for the number of days that the entry has been due for payment. Every day, Maconomy adds 1/365 of the percentage rate. If an interest charge has been added to the entry before, Maconomy adds any additional interest charges starting from the day on which the interest charge was last added.

The difference between the two principles is illustrated in the following example:

The balance due on June 1, 1990, is 1.000 base currency units. Interest has not been added since June 1, and there have been no interest charge settlements on June 15 and July 1, until Maconomy calculates the interest charge again on August 1.

Date 6/15 7/1 8/1

Net 2% 20.00 20.00 20.00

Curr. 24% 9.21 19.73 40.11

When every interest charge calculation has been made, Maconomy checks that the total interest charge amount exceeds the interest charge limit. If the amount is below the limit, Maconomy deletes the interest charge from the entries. If the total interest charge amount is below the minimum interest, Maconomy adds the minimum interest. For more information about interest charge and reminder principles, see the description of the Interest Charge/Reminder Principles workspace.

You can block entries for interest calculation at different stages: after creating the entries, before paying the invoice, or after paying the invoice. Entries that you block for interest calculation are, by default, excluded from the interest charge selection and interest charge notice, and have no effect on the interest charge.

Entries that you block for interest calculation have no interest charge and interest date. You can unblock the entries blocked for interest calculation.

You can also close entries for interest calculation. This should be regarded as a final blocking, and it is not easily undone. You can, however, see the entries that have been closed.

You can block entries in the Change Interest Charge Selection workspace or in the Show Customer Reconciliation workspace.