Interest is a legitimate return on money invested and chargeable in the business world on loans and also on delayed payments. Interest can be calculated on the basis of Simple or Compound Interest.
Tally.ERP allows you to obtain reports on interest calculated based on the instructions you furnish. Interest figures are typically desired in the following situations:
- On Outstanding Balance amounts.
- Outstanding Bills /Invoices/Transactions (Receivables and Payables)
The Activate Interest Calculation field is displayed in the Ledger Creation screen only if Activate Interest Calculations is set to Yes in F11: Features.
Set this field to Yes for each specific ledger account for which interest is to be calculated