As we are aware of Sage Intacct has many features that are useful for the business. In this blog, we will be discussing the Interest calculation on the open AR Invoice. Here, the penalty gets calculated according to the AR Terms setup.
Users can set the Terms as per the business scenario, further that term will be utilized to calculate the Penalty on the invoices which are overdue according to the Term applied to the Invoice.
Navigation to this feature is à Account receivable à setup à More à Terms.
Here we will discuss the process in brief of setting up the Terms and applying those to the Invoices or Customers. While creating the Terms, users need to make sure that they are filling out the mandatory data in the Penalty section on the Term Screen.
Cycle – Cycles define the time span in which the penalty accrues, such as Weekly, Biweekly, Monthly, and so on.
Amount – user can set the fixed amount of penalty or also the percentage depending upon the value set in the next dropdown. For e.g., if the user mentions 2 in the amount field and selects the % symbol in the dropdown below then a 2% penalty will be applied to overdue Invoices and unpaid Invoices.
Grace Days – In the Grace Days field, enter the number of days after the due date that the penalty takes effect. For example, you can use the grace period to compensate for the delay caused when a check is mailed within the penalty period but is delayed in the mail.
How to identify if the penalty is applied or not?
If the penalty is applied on overdue payment the individual adjustment will be created in Sage Intacct.
As of now, we discussed how to calculate the Penalty. The penalty does also have GL Journal Entries effects and we will discuss the same in our next blog.
About Us
Greytrix – a globally recognized and one of the oldest Sage Development Partner is a one-stop solution provider for Sage ERP and Sage CRM organizational needs. Being acknowledged and rewarded for multi-man years of experience and expertise, we bring complete end-to-end assistance for your technical consultations, product customizations, data migration, system integrations, third party add-on development and implementation competence.
Greytrix has a wide product range for Sage Intacct- a Cloud ERP. This includes migrations from QuickBooks | Sage 50 | Sage 100 | Sage 300 to Sage Intacct. Our unique GUMU™ integrations include Sage Intacct for Sage CRM | Salesforce | FTP/SFTP | Rev.io | Checkbook | Dynamics 365 CRM | Magento | Rent Manager | Treez | Avalara Avatax | Blackline SFTP. We also offer best-in-class Sage Intacct Development Services, Consulting services, integrated apps like POS | WMS | Payroll | Shipping System | Business Intelligence | eCommerce for Sage Intacct to Sage business partners, resellers, and Sage PSG worldwide. Greytrix constantly develops apps, products, and add-ons to enhance user experience. Sage Intacct add-ons include AR Lockbox File Processing.
Greytrix GUMU™ integration for Sage CRM – Sage Intacct, Sales Commission App for Sage Intacct, and Checkbook.io ACH/Digital Check Payments for Sage powered by GUMU™ are listed on Sage Intacct Marketplace.
The GUMU™ Cloud framework by Greytrix forms the backbone of cloud integrations that are managed in real-time for the processing and execution of application programs at the click of a button.
For more information on Sage Business Cloud Services, please contact us at sagecloud@greytrix.com. We will like to hear from you.