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Interest Charges in Dunning Document Set Up Question

Former Member
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I hope someone with a better understanding of Dunning (which will be every oout there !), can help me with my question

How is the interest charges in the Dunning Documents calculated?

For example : $1000 with a 2% interest charge....

Is it 1000 x .002 for $20?

Or is it 2% per annum (for a daily rate of .002 / 365) multipled by the number of days overdue x the $1000?

Any clarification would be appreciated.

Thanks

Peter Graham

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Answers (1)

Answers (1)

krishnakishore_gaddam
Contributor
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Hi,

The item must show days in arrears in order to reach certain dunning level for calculating interest. Your formulae is correct but grace periods are not taken into consideration.

Regards,

Krishna Kishore