Late payment interest..how do you arrived at this figure?
Are you still calculating manually the late payment interest ? Do you include the day the payment received or not including the day the payment was received?
Sounds familiar? The one that owes a late payment interest (your SP), will most often challenge the way your system calculate the late payment interest.
We have seen some system just generate a lump sum, $0.61 and you will not know how this figure was derived and you work it out separately in your excel spreadsheet to show this SP the breakdown.
If you are lucky, you get the answer in a minute, otherwise if there are errors or omission, you may spend hours and later to pass a credit note to reverse out the late payment interest and to re-generate again.
At Realtimme Cloud, we show the calculation how the late payment interest amount is calculated, together with the formula.
Even months later, your SP can challenge the amount, you can always refer to the record to verify again
Writer : Choo Hong Peng,
Chartered Accountant, Singapore
Email : sales@realtimme.net
10/12/2020
