AugTool Documentation
Interest Runs
Business Unit Setup
For interest runs to work in Augtool you need an interest item. We have created one called INT (Interest) for an example. This item also needs to be a services type item.Â
On the Terms tab of the Business unit that you wish to run interest runs for clients, you set the default interest rate to apply for all organisations and the interest item that should be used to create the invoices.Â
Organisation Setup
You are able to override the default interest rate that you set on the business unit on the terms tab of the organisation.
Three types of overrides exist:Â
Relative to default - By adding a percentage to this type you will either increase or decrease the default interest rate on the business unit. If the business unit is set to 10 and you add a 5 (without the %) to the text field the effective rate will be 15.Â
Fixed interest rate - By adding a percentage to this type, you will completely override the interest rate by the exact rate you add in this field.Â
Interest free - By selecting this option, you do not need to add a rate to the text field and the organisation will not be charged interest.Â
Run
Should you have access rights to run interest runs you can navigate to the interest run under the reporting menu and create one.Â
Select the date you want to calculate interest rate for. This date is compared to every invoice DUE DATE based on the terms you set, for organisations that have not got an free interest rate overrideÂ
Interest runs are Dumb!Â
They are dumb in the sense that they assume that the previous interest run has been completed, in the sense that every interest invoice has been created and posted. The interest run does not track the fact that you have or have not created the interest invoices (If a run has been done, it assumes all interest invoices have been created).Â
If you create an interest invoice and then credit note it, the run that it is linked to still assumes that the interest has been handled.Â
Another thing to note here is that interest is also always charged on late interest invoices as well!Â
After creating the interest run you will be presented with a blank interest run list with every organisation that has a potential interest invoice and only a Calculate button for each organisation (such as the top item in the list above with a Calculate button and no Generate button).
After you have calculated the interest (see below) you can check the interest calculation and allocate payments or credit notes you have not yet done before generating the interest invoice). Should you have already generated an interest invoice in draft and need to make late allocations or credit notes, you can remove it with the remove button, do what you need to do, and then recalculate before you generate the interest invoice.Â
As you can see above, the organisation above has multiple invoices that are late. Each invoice will have an interest calculated based on its stored balance (which changes based on allocations or credit notes or net settlements.Â
Should an invoice be partially paid or have a partial credit note or be settled partially by a net settlement each change in its balance will be included in the interest calculation. If a balance exists for 2000 for 10 days and you then pay the invoice with 1000 and run the interest run 10 days later an interest rate will be charged for 10% for 10/365 multiplied 2000 and then another 10% for 10/365 multiplied by 1000.Â
Many interest runs in other systems do not include invoices that have been settled in the last month.
Augtool tracks each invoice's balance change in a balance journal. You can see this if you wish to do so on the document log of each invoice. Changes in balances are shown as you can see above and when the balance is 0, the total balance is shown on the document log.Â
You cannot edit an invoice from the invoice itself but rather have to do so with the edit button and edit popup model. Here, many customers amend the description or if they choose to do so, the price.
You cannot add items to this invoice. You can only change the Reference, Description, price and tax code if you wish to do so.Â
As mentioned before, if you try to edit an interest invoice directly, you will be blocked.Â
Interest Run with Forex Invoices
The Interest Run can be created for Base and Foreign currencies. It displays the currency on the list view and allows you to also filter by currency. If an Interest Run is created with a foreign currency it will generate invoices for the interest, in that currency eg: USD invoices will generate invoices with interest in USD.
