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Interest Calculation from Due Date with Grace Period @ Tally.ERP9

Query

 

How do I calculate the interest from the Due Date with a grace period?

 

Answer

 

The invoice raised to Blue Nile Stationeries is as follows: Date of voucher 1st Feb., 2009; Due date of the invoice Feb.28, 2009. The interest parameter is therefore set as shown below:

Interest Calculation from Due Date with Grace Period @ Tally.ERP9

In the above interest parameter setting, though the Due date of the invoice is Feb.28, the applicability of interest calculated is set after 5 days, i.e.the interest is calculated from March 5, instead of Feb.28.

 

To view the report:

 

Go to Gateway of Tally > Statements of Accounts > Interest Calculations > Ledger > Blue Nile Stationeries

Interest Calculation from Due Date with Grace Period @ Tally.ERP9

Note: The limit for the rounding value needs to be set by the user. For example, 1 will round off to Re.1, if limit is set to 10, the rounding off will be done for Rs.10.

 

In cases where the option Downward Rounding is selected, irrespective of the fraction value, the amount is rounded downwards. In the above example, the amount is rounded off to Rs.1084.

 

In cases where the option Normal Rounding is selected, the fraction value above 50 paise is rounded off to the next rupee and vice versa. The above example gives the value Rs.1085.

 

Similarly, when the option Upward Rounding is selected, irrespective of fraction value, the amount is rounded upwards. The above example gives the value Rs.1085.

 


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