Create an interest code with a range

Note

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Interest codes can be set up to calculate different interest amounts based on a range of values. This procedure will show you how to add an interest code and add a range to it.

  1. Go to Credit and collections > Interest > Set up interest codes.
  2. Click New.
  3. In the Interest code field, enter the name of the interest code.
  4. In the Description field, enter a description for the interest code.
  5. Select Month.
  6. Expand the Earnings section.
  7. Expand the Earnings by currency section.
  8. In the Ledger posting account field, specify the desired values.
  9. In the Interest by range field, select 'Months'.
  10. Click Add.
  11. In the Description field, enter a description for this currency and range.
  12. Click Save.
  13. Click Ranges.
  14. Click New.
  15. Enter the From value as 0 and then enter the interest percent per month that will be used to calculate the interest. For our example, it is 1.5.
  16. Click New.
  17. Enter the next From value as 4, which is the first month that you will be calculating a new interest amount.
  18. Enter the interest percent per month that will be used to calculate the interest starting in month 4. For this example, it is 2.0.
  19. Click New.
  20. Enter the next From value as 7, which is the next month that you will be calculating a new interest amount.
  21. Enter the interest percent per month that will be used to calculate the interest starting in month 7. For this example, it is 2.5.
  22. Click Close to complete the setup.