The interest on each outstanding bill, per customer, up to today, at the rate set on Setup > Interest. It is a report only: nothing is posted to the accounts.
When to use it
- To show a customer the interest their overdue bills have built up.
- To decide whether to charge interest, and how much.
Before you start
Set the rates on Setup > Interest. A row that names a customer applies to that customer. A row with no customer is the default for everyone else. With no rate at all, the report is empty.
Where to find it
Reports > AR / AP > Interest on Receivables.
Reading the result
- There is one row per outstanding bill: the bill, its date, its age, the amount outstanding, the rate (for example "12% p.a."), the interest days and the interest.
- Rows are sorted by customer and bill date, with a subtotal for each customer.
- Double-click a row to open the bill.
Tips and common mistakes
- Interest runs from the bill date to today. There is no grace period.
- Rates can be per year, month, week or day. The report converts them to a daily rate.
- Two rate periods for the same customer must not overlap, or the interest is counted twice.
Related guides
- Setup > Interest, Receivable Ageing, Customer Ledger.