Interest on overdue customers

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You may generate transactions for those Customer accounts, which are overdue and have a percentage monthly interest entered in Action → Customers (Accounting information tab).

If this option is initiated, TurboCASH will calculate the Interest and generate the transactions. Once the journal has been posted, the Customer accounts will be increased (debited) and the selected contra account (e.g. interest received - income account) will also be increased (credited).

To generate multiple transactions for interest on overdue customer accounts:

1.On the Action ribbon, select Journal entry (F2).

2.Select the Journal type (except Payment and Receipt Journals, which is linked to Bank accounts) and click on the Open button.

3.Enter the Alias (journal name) in the Change alias field.

4.Click on the F10:Setup icon and select the Contra account. This is the account to be credited with the generated transactions. This account should be an Income or Interest Received account.

5.Press  or click on the F9: Process icon. The "Process the journal" screen will be displayed.

6.Select the "Generate multiple transactions" option.

7.Select the Interest on overdue customers option. The screen will change to reflect the options for this option:

8.Select and enter the following:

a)Date for transactions - Enter or select the date for which the transactions should be generated.

b)Contra account - Leave as is. The contra account needs to be selected in the F10:Setup.

c)Number of days overdue - Enter the number of days the account is overdue. Note it is important that the correct number of days be entered here. TurboCASH will use this to calculate the Interest amount.

9.Click on the OK button. The Generate multiple transactions screen will automatically be closed and TurboCASH will calculate the Interest and transfer the calculated interest transactions for the Customers which have a monthly interest percentage entered in the Action →Customer  (Accounting information tab) menu. The transactions will be imported into the selected journal.

10.Check the transactions and, if necessary, change the descriptions, etc.

Once you have finished entering / editing the transactions in the journal you need to: -

1.Balance the journal.

2.List the journal.

3.Post the journal.

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