AUTOMATICE INTEREST INVOICES CREATION - Oracle 11i AND R12

1. Setup the Payables options with ALLOW INTEREST and the Minimum interest amount and the Expense and Liability accounts

2. Then check the RECALCULATE SCHEDULE PAYMENT check box if you need the system in Payables to automatically recalculate scheduled payment due dates, discount dates, and discount amounts during Approval.

I have not done the same below and left it blank

3. Now go to the desired Supplier/Vendor and enable Interest Invoices

Choose Abbott laboratories and click on Update

Then look at the left side of the screen we can see Invoice Management field, click on that field

  

Now click on check box CREATE INTEREST INVOICE

5. Now we setup Interest Rates

6. Create an Invoice as shown below with a date 2 months earlier and the PAYMENT TERM as NET30 (Created the inv on 01jun10 where as it was 04Aug10)

Approve and make the payment for the Invoice

7. In the Above screen we can see that the payment made creates another payment for the Interest Invoice as well for 47.27

8. Now I would query the Interest invoice AW11- INT1

Note: That the Interest invoice is created with the Suffix of INT1

9. Created another invoice and made the payment not from Scheduled payment but from the Payments Workbench. Here I got this message saying that this Invoice is Past due and Interest is due on this Invoice

This makes a payment for the Interest invoice also as shown below

STEP BY STEP DETAILS TO BE SETUP

1. Setup the Payable options in the INTEREST TAB with ALLOW INTEREST INVOICE and other details
2. Then go to Supplier/Vendor >>> Invoice Management tab and check the check box CREATE INTEREST INVOICES
3. Then setup INTEREST RATES. Setup >>>Payment>>>Interest Rates
4. TESTING: Create an invoice with 2 months prior date and give the PAYMENT TERM AS NET 30
5. Approve and account the invoice
6. Now make the payment with the current date, the system will give us a message saying that this invoice is Past due and has Interest on it.