Thanks David. Since the goal is to make it as convenient as possible for clients to pay, I'd really like to present them with a simple document that clearly indicates the total outstanding amount owing, rather than a series of invoices they have to try to sum up.
Perhaps the solution is to send all the invoices with a cover sheet listing the total, but that also seems unnecessarily complicated. If anyone has any further thoughts I'd be happy to hear them. Thanks, Macho On 2017-08-04 09:56 PM, DaveC49 wrote: > Macho, > > From an accounting perspective, the interest charge is not incurred until > the original invoice is overdue past the agreed date and should be recorded > as such at that time, while the original sale is recorded at the date at > which it occurred. > > On this basis, I think it would be most appropriate to issue an additional > invoice for the interest charges referencing the original invoice at the > date those charges become applicable and then forward a copy of the original > invoice along with the invoice for the interest charges to the customer. If > the invoice remains outstanding, then you would have to periodically e.g > monthly or quarterly send new invoices for the accruing interest charges. > > In mananging this for low value sales, the additional cost of issuing and > mailing the additional invoice may outweigh any additional gain from the > interest charge, so it may be wise to have a threshold in the sale value, > above which you change the terms of sale to include the interest charge for > late payment, or more simply, not pursue the interest charges for sales > below an appropriate threshold while keeping the provision in the terms of > sale. > > You may also need to consider any constraints on policy imposed by any > consumer protection legislation which may apply. > > It would be interesting to compare the effectiveness of offering a discount > for early payment with the imposition of an penalty interest (or using > both) in encouraging prompt payment of invoices. Carrot or stick cf carrrot > then stick? > > > David Cousens > > > > ----- > David Cousens > -- > View this message in context: > http://gnucash.1415818.n4.nabble.com/Interest-late-penalties-on-invoices-tp4693055p4693057.html > Sent from the GnuCash - User mailing list archive at Nabble.com. > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > https://lists.gnucash.org/mailman/listinfo/gnucash-user > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
