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Small and medium business | Business Central, N...
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Finance Charge Terms - Interest Calculation

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Hi! 
 
Using Dynamics 365 Business Central, I'm attempting to setup the Finance Charge Terms to calculate interest due on overdue customer receivables.
 
The difficulty I'm having is that the interest rate increases on a month by month basis as follows:
 
>30 days interest at 1%
>60 days interest at 2%
>90 days interest at 3%
>120 days interest at 4%
>150 days interest at 5%
 
i.e. the interest rate increases by 1% every 30 days up to 5%.
 
Is this possible to achieve in NAV and if so can anyone explain how it is done?
 
Many thanks! 
Jonathan  
  • Suggested answer
    KasparsSemjonovs Profile Picture
    KasparsSemjonovs 3,962 Super User 2024 Season 2 on at
    Finance Charge Terms - Interest Calculation
    If I understand correctly You can set interest rate to 1% and Interest period to 30days.
    If customer owes You 100$, after 20 days it will be 1$, but if it is 100 days, it will be 3$.
     
    Gotta re-test how it calculates when it is not full 30 days, when something is paid - does it calculate full 1% or proportional rate of days. like 0.50$ if only 15 days are missed.
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    YUN ZHU Profile Picture
    YUN ZHU 74,115 Super User 2024 Season 2 on at
    Finance Charge Terms - Interest Calculation
    Hi, hope the following helps.
     
     
    Thanks.
    ZHU

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