Collections – interest note calculation based on number of days between due and payment date
Important
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| Enabled for | Public preview | General availability |
|---|---|---|
| Users by admins, makers, or analysts | - | 
May 1, 2021 |
Business value
If your business provides goods or services to a customer in accordance with the terms of a commercial contract, and you haven't received their payment by the agreed deadline, you are entitled to receive interest and compensation on the payment you are owed. The calculation of interest follows commonly used practices.
This new method applies to all your commercial transactions with other businesses including sole traders, providing that they are acting in the course of their independent economic or professional activity, and public authorities.
Feature details
Interest calculation might use a formula of the rate, either annual or monthly, that is converted to daily rates, multiplied by the number of days elapsed between the due date and the settlement date (or the date on which the calculation is made, if the payment hasn't been made).