Ideal Online Documentation

25565 A/R PROCESSING
AR2-04 Interest Calculation

 

PURPOSE

 

The interest calcualtion program is used to calculate interest on overdue A/R balances. The program is typically run prior to printing customer statements at month end. It should be run only once per accounting period.

 

Interest is calculated for accounts based on the interest type entered on each customer master file record. A report is printed showing the interest that the program has calculated and the operator then has the option of updating the interest charges to the accounts receivable and general ledger systems. Monthly interest shows on the A/R ledger inquiry and customer statements.

 

 

PROCEDURE

 

Select Interest Calculation from the Accounts Receivable Month End menu. The data entry screen immediately opens with the first prompt.

 

** TRANSACTION DATE ?

 

Enter the transaction date in MMDDYY format.

 

[Enter] for the current system date.

 

The usual entry for this field is the last day of the current accounts receivable period. The transaction date appears on the service charge transactions in the A/R ledger inquiry and customer statements. If you enter a date that is not within the current A/R period, the following warning message displays.

 

 

>> NOT PERMITTED. DATE NOT WITHIN A/R PERIOD. PRESS ENTER:
   PERIOD '9409' - STARTS: 09/01/94,  ENDS: 09/30/94

 

[Enter] to clear the message and reenter the date.

 

** INTEREST PERCENT?

 

Enter the default interest rate.

 

[Enter] to accept the rate as of the last interest calculation run.

 

This rate is used if the customer's interest rate is zero but the customer's interest type is not equal to "N". Normally the customer's interest rate will be set properly and the default interest rate will not be used.

 


** FLAT RATE ?

 

Enter the flat rate dollar amount.

 

[Enter] to accept the rate amount as of the last interest calculation run.

 

This amount is used for customers who are charged a set fee rather than an interest percentage.

 

 

** CONTINUE ? (Y/N):

 

"Y" to generate the interest calculation report.

 

"N" to exit the program.

 

 Example Interest Calculation Data Entry display:

┌────────────────────────────────────────────────────────────────────────────────┐
│07/27/95 TE6 ***** A/R INTEREST CALCULATION REPORT AND UPDATE *****      3RICR1 â”‚
│                                                                                â”‚
│                                                                                â”‚
│                                                                                â”‚
│                                                                                â”‚
│** TRANSACTION DATE ?         09/30/94                                          â”‚
│                                                                                â”‚
│   THE DEFAULT MONTHLY INTEREST RATE WILL BE 2 PERCENT.  PRESS CR IF OK.        â”‚
│                                                                                â”‚
│** INTEREST PERCENT ?         2                                                 â”‚
│                                                                                â”‚
│   THE FLAT RATE WILL BE $ 10.00 .  PRESS CR IF OK.                             â”‚
│                                                                                â”‚
│** FLAT RATE ?                 10.00                                            â”‚
│                                                                                â”‚
│** CONTINUE ? (Y/N):                                                            â”‚
│                                                                                â”‚
│                                                                                â”‚
│                                                                                â”‚
│F4 TO RETURN TO MENU                                                            â”‚
│                                                                                â”‚
│                                                                                â”‚
└────────────────────────────────────────────────────────────────────────────────┘

 

 

PROCEDURE - REGISTER PRINTING & UPDATING

 

The interest calculation register prints an audit trail of the interest calculations that the program has calculated.

 

The register must be printed before the batch can be updated.

 

PRINTER SELECTION & CONFIGURATION

┌────────────────────────────────────────────────────────────────────────────────┐
│08/14/07                *****  PRINTER SELECTION  *****                         │
│                                                                                â”‚
│                                                                                â”‚
│** MAKE SURE PRINTER IS READY BEFORE PRESSING CR .....                          â”‚
│                                                                                â”‚
│1. PRINTER NAME ................................. P1  OKIDATA 390               â”‚
│                                                                                â”‚
│2. CHARACTERS PER INCH ? (10,12,17) ............. 10                            â”‚
│   SINGLE OR DOUBLE DENSITY ? (S,D) ............. S   SINGLE DENSITY            â”‚
│                                                                                â”‚
│** PRESS CR TO SET PRINTER, OPTION# TO CHANGE, F4 TO END (BYPASS): _            â”‚
│                                                                                â”‚
└────────────────────────────────────────────────────────────────────────────────┘
** PRESS CR TO SET PRINTER, OPTION# TO CHANGE, F4 TO END (BYPASS):

 

"1" to change printers.

 

"2" to change the CPI and/or print density.

 

[Enter] to print.

 

[F4] to not print and exit to the menu.

 

[F5] to display a list of printers for selection.

 

After printing the registers you have the following options. If you do not print the registers, the batch options are not available.

 

** ENTER OPTION.....   REPRINT; UPDATE; ABORT:

 

"R" to reprint the register.

 

"U" to update the batch.

 

Both the accounts receivable and general ledger are updated and the batch work files deleted.

 

 

"A" to abort and delete the batch.

 

An example Interest Calculation Register follows.

  



                                               IDEALWARE
07/27/95  00:16:30                                                                           PAGE: 1

                                 A/R INTEREST REGISTER AS AT 09/30/94
-------------------------------------------------------------------------------------------------------
CUSTOMER#   NAME                           TYPE         RATE       INTEREST        G.S.T.         TOTAL
-------------------------------------------------------------------------------------------------------

ABACON      ABACAB CONSTRUCTION LTD        OVER 30      2.00%         39.68           .00         39.68
AHCON       A&H CONCRETE LTD               OVER 30      2.00%         15.72           .00         15.72
BAZGOR      GORDON BAZZLE                  OVER 30      2.00%           .65           .00           .65
BOSCON      CONNY BOSLEY                   OVER 30      2.00%        159.37           .00        159.37
DIVCON      DIVINE CONSTRUCTION LTD.       OVER 60      2.00%        103.99           .00        103.99
GALBRA      BRAD GALVERT                   OVER 30      2.00%         96.02           .00         96.02
HOLLEY      HOLLFORD EYEMORE LTD           OVER 30      2.00%        138.86           .00        138.86
MCICON      MCINNIS CONSTRUCTION           OVER 30      2.00%        187.91           .00        187.91
WATCON      WATLEY CONNORS                 OVER 30      2.00%         16.99           .00         16.99
                                                                 ----------    ----------    ----------
RECORDS PRINTED: 9                                                   759.19           .00        759.19
                                                                 ==========    ==========    ==========


                                IDEALWARE
 07/27/95  00:16:30                                               PAGE: 1
                     GENERAL LEDGER POSTING SUMMARY

 SOURCE CODE: SC           BATCH NUMBER: 9409           G/L DATE: 09/30/94
-------------------------------------------------------------------------
  ACCOUNT     ACCOUNT                                DEBIT          CREDIT
    CODE        NAME                                 AMOUNT         AMOUNT
-------------------------------------------------------------------------

01-00-1200     Accounts Receivable                   759.19
01-00-7000     Interest & Bank Charges                              759.19
                                               ------------   ------------
                                                     759.19         759.19
                                               ============   ============