Creating Interest Invoices

This guide covers how to create interest invoices both through Interest Invoice Creation and via a new sales invoice. We also look at how to manage customers' late payment interest and answer the question of why no voucher has been created for the interest invoice.

Interest invoices can be created in two different ways: Interest Invoice Creation (Sales > Interest and Collection > Creation of interest invoices ) or Through Creating a New Invoice.

In the sales basic information, there is a section where you can address late payment interest and collection fees.

Here you can set the minimum amount to be invoiced for late payment interest and tolerance days. These details can also be set individually for each customer on the customer's card under the Edit Additional Information tab. Primarily, the information is retrieved from the customer card, but if nothing is set there, the information is taken from the Sales Basic Information for interest invoices.

For interest invoicing, we have created a new interest product.

The interest product can only be used on interest invoices; it cannot be manually added to a sales invoice.

CONTENTS

• Creating interest invoices through Interest Invoice Creation
• Creating an interest invoice through a new sales invoice
• Customer's late payment interest changes
  • Frequently Asked Questions

Creating interest invoices through Interest Invoice Creation

Creating interest invoices is started as follows: Sales > Interest and Collection > Interest Invoice Creation.

Note. An interest invoice cannot be created from an invoice that has an overpayment recorded, meaning the invoice total is negative.

After this, a view opens where the customers and invoices from which interest invoices are to be created are defined:

• Date: A start date can be given from which the interest invoice creation begins and an end date. If the start date is empty, interest is calculated from the invoice due date onwards or from the end date of the most recent interest run.
• Customer Group and Customers: customers for whom interest invoices are to be created. Selecting a customer group limits the customers.
• Invoices: It can be limited from which invoice number to which invoice number the interest invoicing would be done.
• Collection Fee: a fee that is added to each customer-specific invoice. The program suggests the default collection fee, which can be set in the sales basic information. For currency-denominated invoices, the collection fee comes with the amount entered in the collection fee field. For example, if you enter 10.00 as the collection fee amount, the collection fee for SEK-denominated invoices will be 10.00 SEK.
• Minimum Amount: the lower limit below which interest from invoices is not included in the interest proposal.
• Tolerance Days: days that define the time after the due date has expired when interest begins to be calculated.
• Recording: if you want to prevent the interest invoice from being recorded in the accounting when sending the invoice, select the option "Do not record". If "do not record" is selected, no voucher can be obtained for the interest invoice afterwards except by creating it entirely manually through the creation of a new voucher.
• Interest Invoices: if you want to create interest invoices also from already created interest invoices, this can be done by selecting the option "Include interest invoices in the proposal".

After defining the search criteria, the interest proposal is created by pressing the "Calculate"  button.

Interest invoices are always prepared by customer. The interest proposal shows all the customers and invoices from which interest has accumulated according to the given search criteria. Using the checkboxes, you can finally select the invoices from which interest invoices are created. With the "Update" button, the invoice totals are recalculated according to these selections. Netvisor uses 360 interest days for the year in interest calculation.

 At the end of the interest proposal, you can also see the customers and invoices in interest lock, which would have been included in the invoice creation without the lock. Interest invoices are not created from these invoices in interest lock.
By pressing the "Accept and create interest invoices"  button, the interest proposal is saved and interest invoices are created based on it. After this, the user is transferred to the sales ledger view, from where the invoices can be sent to the customers.
For the invoices from which interest invoices were created, the date set in the interest proposal is set. Interest is no longer created from these invoices in the future except from this defined date onwards.

 Question: Does Netvisor take into account if a partial payment is made on the invoice, does interest invoicing take this into account?

Answer: Yes, a partial payment reduces the amount of the interest invoice compared to if there was no payment at all on the invoice.

The created interest invoice has been deleted:

When the created interest invoice has been deleted, it can be retrieved again as follows:

Go to the sales invoice from which the interest invoice was created, select Additional Information

In the view that opens, reset the previous interest run, the date field can be left empty:

After this, you can create a new interest invoice.

Creating an interest invoice through a new sales invoice

If you start creating a new invoice for a customer who has accumulated late payment interest in the last year, at the end of the new sales invoice creation stage, information appears: The customer has recently accumulated late payment interest. If interest has only accumulated more than 12 months ago, interest invoices must be created through Interest Invoice Creation (Sales > Interest and Collection > Interest Invoice Creation or directly from the customer card Customer Overview > Financial Information > Total Accumulated Late Payment Interest)

At this point, you can choose whether to add interest to the invoice. If you select Do not add, no interest invoice is created from these, and you proceed to create a completely new sales invoice for the customer.

View Billable Interest selection shows the accumulated interest for the customer, and from the view, you can select which interest is billed on the invoice. By default, accumulated interest is always shown for a year, but by changing the start date, you can also see interest accumulated more than 12 months ago (the minimum amount for late payment interest and tolerance days are retrieved from the customer card, if these are not defined on the customer card, the information is retrieved from the Sales Basic Information).

From the red mark at the end of the row, you can set an interest calculation ban on the invoice. After pressing the mark, the following view appears:

When you select yes from here, this particular interest row is removed from that view, and the user receives a notification of successful interest calculation ban.

Add Interest selection brings the selected interest directly as an invoice line to the invoice. You can also add other invoice lines to the same invoice if you wish, or invoice only the accumulated interest from the customer. The invoice lines will show the amount of interest and from which invoice and on what basis the interest was formed.

Editing these interest invoice lines is prevented, and copying the interest line is also not possible. However, the user can drag the lines to the end of the invoice if other invoice lines are added to the invoice.

Customer's late payment interest changes

If the customer's late payment interest changes, first update the percentage in the Late Payment Interest section from the sales basic information. This does not update the information behind the customer or on existing invoices, but if there is no information in these, the percentage is retrieved from here.

Then it is advisable to open the customer list and make the late payment interest percentage visible and update the view. Then, where the late payment interest is still the old value or incorrect, select these customers and Customer List Actions > Edit Customer Information > Late Payment Interest and enter the new correct interest percentage here.
This does not update the information on existing invoices, but new invoices for these customers will receive this new late payment interest percentage.

For existing, unsent invoices, the late payment interest can be changed by opening the invoice and Sales Invoice Actions > Additional Information and changing the late payment interest percentage from here.

For already sent invoices, the late payment interest percentage should not be edited afterwards; it should remain the same as when the invoice was originally sent.

Frequently Asked Questions

Why hasn't a voucher been created for the interest invoice?

When creating an interest invoice, it is important to ensure that the recording option is set correctly. By default, the recording option is "recorded", but if it has been changed to "do not record", no voucher is created for the interest invoice. If interest invoices have already been made and sent without a voucher, they cannot be changed afterwards. In this case, vouchers must be created manually, and the "internal information" field can indicate what the voucher would have been.

Keywords: Interest invoices, late payment interest, collection fees, interest invoice creation, interest proposal

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