Wholesale Interest Module Overview

The Wholesale Interest Module is a vital tool within the accounting system, designed to manage and generate interest invoices for wholesale customers who miss scheduled payments. It automates the calculation and invoicing of interest charges, ensuring timely follow-up on overdue accounts and promoting better cash flow management.

How It Works

When creating an invoice for a wholesale account, customers are expected to pay according to a predetermined schedule, often 30/60/90 days. If a customer fails to meet these payment deadlines, interest invoices can be generated to apply additional charges for late payments.

This module provides a seamless way to:

• Identify overdue accounts.

• Generate interest invoices in bulk for multiple customers.

• Keep detailed records of all interest batches and associated invoices.

Accessing the Wholesale Interest Module

1. Go to the Accounting section.
   
   

2. Navigate to the Wholesale Interest tab. Here, you'll find a summary of all existing interest invoice batches.
   
   
   
   

Key Components

1. Wholesale Interest Dashboard

The dashboard provides an overview of all previously created interest invoice batches. The columns include:

• Date: The date the batch was created.

• Interest Batch Number: A unique identifier for each batch.

• Created By: The user responsible for creating the batch.

• Description: A brief description of the batch.

• Invoice Count: The number of invoices included in the batch.
  
  Note: Selecting the Set Filter button allows you to filter the Invoices based on a specific date range
  
  
  

2. Generate Interest Invoices

To create a new batch of interest invoices:

1. Click "Generate Interest Invoices" to open the batch creation interface.

2. Pending Customer Interest List:

   • View customers with overdue balances.

   • Columns include:

     • Customer Name

     • Customer Number

     • Amount Due

     • Details Link for additional account information.

3. Search and Select:

   • Use the search bar to find specific customers by name or account number.

   • Select the customers you wish to include in the batch by checking the corresponding boxes.

4. Continue to Generate Invoices:
   
   

After selecting customers, click "Continue" to finalize the batch.

Batch Details Report

Once a batch is generated:

1. It appears on the Wholesale Interest Dashboard.
   
   

2. Clicking the batch number opens the Batch Details Report, which includes:

   • Date: The batch creation date.

   • Batch Number: The unique identifier for the batch.

   • Customer Name: The customer for whom the invoice was generated.

   • Invoice Date: The date the interest invoice was issued.

   • Invoice Number: The unique identifier for the invoice.

   • Amount: The total interest charged to the customer.

Understanding Payment Schedules and Interest

1. Payment Schedules:

   • Wholesale accounts often have payment terms like 30/60/90 days.

   • The schedule is agreed upon during the invoice creation process.

2. Interest Invoices:

   • Late payments incur interest charges, which are calculated and applied via the Wholesale Interest Module.

   • These invoices ensure the customer is charged additional fees for overdue payments, incentivizing timely payments in the future.

Benefits of the Wholesale Interest Module

• Automation: Streamlines the process of identifying overdue accounts and generating invoices.

• Efficiency: Reduces manual tracking of missed payments.

• Accuracy: Ensures interest charges are applied correctly to overdue accounts.

• Transparency: Provides clear documentation of all interest charges and batches for auditing purposes.

Practical Example

1. A customer misses their 30-day payment deadline for an invoice.

2. The system identifies the overdue amount as $x,xxx.xx.

3. The user generates an interest invoice batch for the customer using the module.

4. The interest invoice is created and can be sent to the customer for payment.

Tips and Best Practices

1. Monitor Payment Schedules:

   • Regularly check the Wholesale Interest Dashboard to identify overdue accounts.

2. Batch Management:

   • Use batch numbers to quickly reference and track specific interest invoices.

3. Customer Communication:

   • Ensure customers are informed about interest charges and payment deadlines.