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Activating Interest Calculation @ Tally.ERP9

Query

 

How do I activate Interest Calculation in Tally.ERP?

 

Answer

 

The feature Interest Calculation can be activated for any ledger in Tally.ERP 9. The Interest Calculation Report in Tally.ERP 9 gives only the implication of interest for the selected account.  The amount is not charged to the books of account until an entry is passed.

 

To enable Interest Calculation for a Ledger:

 

Go to Gateway of Tally > F11:Features > Accounting Features > set Activate Interest Calculation to Yes.

Activating Interest Calculation @ Tally.ERP9

Select the ledger for which the interest calculation needs to be activated from the Ledger Alteration screen and set the option Activate Interest Calculation to Yes.

 

Note: This option can also be enabled for a new ledger during the ledger master creation.

 

In the Interest Parameters sub screen, specify the rate of interest and select the Interest Style.

 

On enabling Interest Calculation for Ledger, the screen is displayed as shown below:

Activating Interest Calculation @ Tally.ERP9

Types of Interest Calculation Styles

There are four types of Interest Styles available in the Interest Parameters screen, which are as follows: 

  1. 30-Day Month
  2. Calendar Month
  3. 365-Day Year
  4. Calendar Year
 


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