Interest on outstanding invoice amounts is optionally calculated and printed on the A/R Reminder Statements, based on the Aging Date and the invoice age you specify in the Charge On field (e.g. 30 days).
Note that interest is not posted to the A/R by the A/R Reminder Statements function. If you wish to create an interest invoice, you must enter an amount in the A/R Reminder Interest function and post it to the A/R.
The next time you generate an A/R Reminder Statement and select the Charge Interest option, interest is calculated on the principal amount, including the amount in prior interest invoices. Therefore, interest will be compounded at that time.
In Amicus Accounting 2008 or higher, you can select to post simple interest which will be added to the client's account, but no interest will be calculated on interest that has been posted. Simple interest will be calculated on the original invoice amount, not on the posted interest. Therefore, it is not compounded.
