COMPOUND INVOICING INTEREST CALCULATION

COMPOUND INVOICING INTEREST CALCULATION

If a trader sales goods to any party on credit basis then the trader charges interest on outstanding balance.

If the party refunds cash by instalment then the trader charges different interest on all instalments. It is called Compound Invoicing Interest Calculation.

Example:-

Mohan sold 5 pieces of LG TV for Rs. 10,000 each on credit basis to Vinay. Vinay paid the total amount in five instalments of Rs. 10,000 each. Mohan charges 10% interest for two months and 9% for remaining three months.

Record the above transactions.

To maintain:-

Create a company and then activate bill wise details, interest calculation and debit/credit note as follow:-

To Activate Bill Wise Details, Interest Calculation and Debit/Credit Note: - G.O.T. (Gateway of Tally)--> Press F11 (Company Features)--> Press F2 (Inventory Features).

Now create ledger:-

Path for ledger creation: - G.O.T. (Gateway of Tally)--> Accounts Info--> Ledger--> Create (Single).

Now create stock master:-

To Create Stock Group: - G.O.T. (Gateway of Tally)--> Inventory Info--> Stock Group--> Create.

 To Create Stock Item: - G.O.T. (Gateway of Tally)--> Inventory Info--> Stock Item--> Create.

 Do voucher entry as follow:-

Path for voucher creation: - G.O.T. (Gateway of Tally)--> Inventory Voucher--> Press F8 (Sales Voucher).

And then press F12 for configuration as follow:-

And now do the voucher entry.

Press F6 to open Receipt Voucher.

When the voucher opens, press F2 and change the date as given below:-

And then press “enter” and fill the voucher.

Accept the voucher and again press F2 and change the date.

View the ledger interest of Vinay as follow:-

Path for view interest calculation: - G.O.T. (Gateway of Tally)--> Display--> Statement of Account--> Interest Calculation--> Ledger-->Vinay.

Now create voucher type as follow:-

Path for voucher type creation: - G.O.T. (Gateway of Tally)--> Accounts Info--> Voucher Type--> Alter.

When you will press “enter” key on “Alter”, a list of voucher types will be open. You will select there “Debit Note” as follow:-

Press “enter” key on “Debit Note” and a form will open, fill as follow:-

Press “enter” after filling the name of class and then as follow:-

Press “enter”.

Accept the voucher by pressing “enter” key or “y”.

Now again do voucher entry:-

Now do voucher entry as follow:-

Path for voucher creation: - G.O.T. (Gateway of Tally)--> Inventory Voucher--> Press Ctrl + F9 (Debit Note Voucher).

Press “enter” on “Interest Receivable” and the voucher will be opened as follow:-

Accept the voucher.

After that, press F6 to open Receipt Voucher:-

Now view the ledger interest of Vinay as follow:-

Path for view interest calculation: - G.O.T. (Gateway of Tally)--> Display--> Statement of Account--> Interest Calculation--> Ledger-->Vinay.

You can see that the ledger interest of Vinay is blank. It shows that all the instalments have been paid.