How to: Set Up Multiple Interest Rates
You can calculate finance charges with multiple interest rates for a specific period. The interest calculation is similar for all financial charges, with variation only in the rate of interest for a specific period.
For example, you can charge customers accordingly if they pay late.
To set up multiple interest rates
In the Search box, enter Finance Charge Terms, and then choose the related link.
In the Finance Charge Terms window, select the required finance term, and then, on the Navigate tab, choose Interest Rates.
Fill in the fields as described in the following table.
Field Description Start Date
Enter the start date for each finance charge interest rate code.
Interest Rate
Enter the percentage that must be used to calculate interest.
Interest Period (Days)
Enter the period for each finance charge interest rate.
Choose the OK button.
In the Search box, enter Reminder Terms, and then choose the related link.
In the Reminder Terms window, select the required reminder term, and then, on the Actions tab, choose Levels.
In the Reminder Levels window, select the Calculate Interest field.
When you issue a finance charge memo, the memo shows the finance charges with multiple interest rates for a specific time period. The memo also contains the contact details of the customer, the company issuing the memo, the additional amount, and the total amount. The opening entry on the memo is displayed in bold. The finance charges are calculated with multiple interest rates for a specific time period and are printed after the opening entry of the memo.
See Also
Other Resources
How to: Create Finance Charge Memos Manually
Create Finance Charge Memos
Finance Charge Terms
How to: Set Up Reminder Terms