Interest on an Invoice

SILQ gives you the ability to calculate and track interest charged on outstanding invoices.

For example: if you have your net terms as 30 days, yet have not received an outstanding amount of money for more than say 75 day, you could create an “Interest Invoice” for the outstanding period. This feature is useful for managing cash flow and expectations for your clients.

To calculate interest for an invoice, go the Invoice Window and select the invoice that you want to calculate interest for. Then click on Calculate Interest in the top toolbar.

Fields

Calculation Method: You can decide whether SILQ uses the compound or simple method for calculation.

• Interest Rate: This is the interest rate to use in the calculation. This will default to the rate specified in your original system preferences (in this example it is 9% - the default rate)
• Calculate up to: This is the date that you want to perform the calculation up to.
• Interest Amount: This is the amount of interest that has been calculated, which can be overridden if need be.

SILQ will create a new invoice item that is a special Interest Invoice which will appear green in the invoice list, as in the example over the page.

Please note: You will still need to Generate the invoice to actually send off to your client. To do this, click on the Generate Invoice button and follow the normal invoice or invoice pack generation procedures. 

Did you know? In the event that you want to add more interest to an invoice that has already got interest added to it, this can be done and SILQ will know where you calculated the interest up to last time so you don't end up double charging interest.

If interest rates change over time, the new interest rate can be added to SILQ in the System Settings. SILQ Will then calculate using different rates over different periods.