How to set up Interest Rules.
You can now charge interest on past due Invoices. Interest owed can also be compounded, if desired.
1. Select 'Settings' from the left-hand navigation panel.
2. Click 'Setup Interest Rules'.
3. Create an Interest Rule 'Title', 'Term', and 'Rate'. Additionally, enable 'Recurs', 'Compounded Interest', and 'Apply to ALL unpaid invoices', as needed. Then, click 'Add Interest Rule'.
Interest Rule Title: The title description that will appear on your Invoices.
Term: Amount of days until the rule goes into effect.
Rate: The rate of interest you'd like to be applied.
- If this is NOT turned on, the interest will stop accruing after one term.
- If this IS turned on, this rule will continue to be applied to all future balances.
Compound Interest: Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.
Apply to ALL unpaid invoices: If turned on this setting will apply interest to all invoices, even those with an Invoice date prior to when this rule was applied to the Matter. Interest will be charged on those pre-existing Invoices moving forward. If this is turned off, interest will only be added to Invoices generated after this rule is applied to the Matter.
* If you set an interest rate term of 30 days, after the completion of this term if a payment is back dated on the 30th day, interest will be calculated on the Invoice.
Please contact Rocket Matter Support for any questions you may have.
NOTE: Interest can only be applied to Fees and/or Costs. Rocket Matter does not include interest on debit adjustments.