Interest functionality

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Posted on by sk1981

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Hello all,

I'm trying to understand how interest works in D365FO. I found that in credit & collections interest codes can be specified and then an interest note can be created and posted. The interest code is specified on the customer posting profile. Will interest be calculated and included on a sales invoice once I post it? How can I calculate interest for example on all my past due invoices and see the effect if I don't want to send and post interest notes.

So is this functionality limited to posting and creating interest notes in Credit & Collections?

I also tried to create a Free Text Invoice but I don't see interest anywhere.

Thanks,

Sidra

Categories:

Financial Management

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sk1981 165 on at

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RE: Interest functionality

Thank you all for the responses. I have already set up interest calculation in the AR parameters. We have no need to create and post interest notes. I have defined an interest code in Credit & Collections. How do I start applying this interest on sales order or purchase order invoices? Or all past due invoices?
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Alireza Eshaghzadeh 11,151 Super User 2024 Season 2 on at

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RE: Interest functionality

Hi Sidrakhan,

You can define on Account receivable parameters on how interest can be calculated on due invoices:

You have the possibility to stop a customer from interest calculation by excluding the customer from interest charges.

Nb. If you have define the customer profile per customer group, you can just assign interest calculation for actual customer groups
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BillurSamdancioglu 13,600 Most Valuable Professional on at

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RE: Interest functionality

Hi,

You calculate interest due to the interest rates if customer do not pay in time.

You use periodic functionality to calculate the interest.
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André Arnaud de Cal... 290,263 Super User 2024 Season 2 on at

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RE: Interest functionality

Hi Sidra,

When you post invoices, there is no interest yet. You can read the documentation about interest notes: Process interest - Finance | Dynamics 365 | Microsoft Learn

You can review the interest notes and cancel them before posting if you don't want to send them.