Interest is calculated on outstanding receivables or payables. Interest is a legitimate return on money invested and chargeable in the business world on loans and also on delayed payments.

1. Gateway of Tally->Click F11->(Accounting).

2. Set the option Activate interest calculation to Yes.

3. Press Ctrl+A to save the Company Oparations Alteration.

4. Press Enter.

1. set Activate interest calculation? to Yes.

2. Set Calculate Interest Transaction-by-transaction? to Yes.

3. Set Override Parameters for each Transaction? to Yes.

4. Set Override advanced parameters? to Yes.

5. Enter the Rate of interest.

6. Select the Interest Style, as required. The rate of interest will be calculated on the basis of the interest style applied.

7. Select the balance on which the interest has to be calculated. Interest can be calculated on credit balance, debit balance or both credit and debit balances.

8. Select the Applicability of the interest as required. If Past Due Date is selected, then the number of days after which interest has to be applied can be specified.

9. Select the date from which interest is applicable in the Calculate From field.

10. Select the rounding method applicable in the Rounding field. Select Not Applicable for saving values as is without rounding off.

11. Define multiple slabs with different rates and applicability.

12. The Interest Parameters screen with multiple slabs appears as shown below:

The Group Interest Calculation statement is a list of all accounts and sub-groups belonging to the selected group that displays the current balance in each account or sub-group and the total interest.

1. Go to Gateway of Tally> Display > Statements of Accounts > Interest Calculations > Interest Payable

1. Apr 01 Goods purchased from M/s. MORE INDUSTRIALS for the following

- Horlicks : 300bottles @ Rs.180each
- Cerelac : 500pack @ Rs.200each
- Bornvita : 400bottels @ Rs.200each Vide bill no: 90(30days)

Rate of interest: 15% |

Interest style: 365days |

Interest balance: Debit Balance |

Applicability: Past due date By: 30days |

from: Due date of invoice ref |

2. Apr 02 Goods sold to M/s. WORLD VISION for the following

- Horlicks : 200bottles @ Rs.210each
- Cerelac : 250pack @ Rs.220each
- Bornvita : 200bottels @ Rs.250each Vide bill no: 080

Rate of interest: 10% |

Interest style: 365days |

Interest balance:: All balance |

Applicability: Past due date By: 30days |

from: Due date of invoice ref |

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