How to calculate interest on only credit or debit balance?
Tally.ERP 9 has the option of calculating the Interest on All Balances or only Credit/ Debit balances.
Consider the example of the company that receives an advance amount of Rs.25,000/- from Blue Nile Stationeries on January 26, 2009 towards an increased supply. The company charges an interest on the outstanding bill, but wants to pay the interest at a lower rate (6%) for amounts received from customers as advance.
Select the option All Balances from the list of Interest Balances in the Advance Interest Parameters screen as shown below: