[Off Topic] Question fo Bean Counters - Interest

Dina-

To answer your question, you are correct. In month one, you'd charge
interest on the outstanding invoice amount, then in month two, charge
interest on the invoice and the interest due. However, my personal
opinion, keep it simple, and DON'T charge interest. I don't know
exactly how it works in Vantage but I assume you'd have to set up an
Interest Receivable account and book Interest Income, but chances are,
you'll probably never receive this interest payment and have to write it
off in the end. I'd be more concerned about collecting the original
invoice amount rather than to haggle over a few dollars of interest. On
the other hand, I don't know the dollar size of your invoices - if they
are that large, I'd probably be asking for some money up front or on an
installment or "percentage of completion" method. I would, however,
recommend establishing an interest rate in your Terms and Conditions so
that if the account would become extremely old and would need to be
turned over to a collection agency, they could pursue this amount too in
order to help offset their fee (keep the past due interest charge in
your back pocket just in case you need to play that card!).

My thoughts...

Thanks!



Rick Ludwig



-----Original Message-----
From: Dina M. Hieber [mailto:dhieber@...]
Sent: Tuesday, January 06, 2004 12:58 PM
To: vantage@yahoogroups.com
Subject: [Vantage] [Off Topic] Question fo Bean Counters - Interest
Importance: High


Happy New Year,



Just a quick question / opinion on how to charge interest;



Scenario;



Invoice Date; 10/28/03

Terms; Net 30

Due date 11/27/03



Have not received payment yet - I am invoicing for Interest due I
invoice
for 1 or 2 months interest?



>From 11/27/03 - 12/27/03 and then from 12/27/03 - 01/27/04?



I am thinking about how my credit card works and I think I should
invoice
them for 2 months.. But someone here disagrees with me.





Have a Nice Day,



Dina Hieber

Vamco International, Inc.

Phone (412) 963-7100

Fax; (412) 963-7160



www.vamcointernational.com





[Non-text portions of this message have been removed]



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[Non-text portions of this message have been removed]
Happy New Year,



Just a quick question / opinion on how to charge interest;



Scenario;



Invoice Date; 10/28/03

Terms; Net 30

Due date 11/27/03



Have not received payment yet - I am invoicing for Interest due I invoice
for 1 or 2 months interest?



From 11/27/03 - 12/27/03 and then from 12/27/03 - 01/27/04?



I am thinking about how my credit card works and I think I should invoice
them for 2 months.. But someone here disagrees with me.





Have a Nice Day,



Dina Hieber

Vamco International, Inc.

Phone (412) 963-7100

Fax; (412) 963-7160



www.vamcointernational.com





[Non-text portions of this message have been removed]