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.