The supplier interest provision process involves calculating and posting the interest provision for overdue supplier invoices.
The total supplier interest provision for a given period is calculated by creating a supplier interest provision proposal for that period. The calculation of the interest provision for each individual invoice installment in the proposal will be based on the interest template connected to the supplier to whom it belongs. When a supplier interest provision proposal is created for a period, it would automatically include all the supplier invoice installments for which the company is liable to pay interest during the period. However, invoice installments for which you do not want any interest provision calculated can be excluded before the proposal is created as well as after it is created.
Once a supplier interest provision proposal is created, its status will be Created. At this stage, there are two different levels to make exclusions. In the first level, a supplier can be excluded from the proposal which results in all the invoice installments belonging to that supplier being excluded from the same. In the second level, a selected invoice installment can be excluded. It is also possible to modify the interest provision calculated for individual invoice installments in a supplier interest provision proposal of the status Created. In addition, you can print a preliminary supplier interest provision report.
A supplier interest provision proposal can be removed from the system as long as its status is Created. At the time of removing the proposal, you have the option to save the exclusions made to the proposal so that the same exclusions can be applied to the supplier interest provision proposals created in the future.
Once the supplier interest provision amounts for a period are finalized, the supplier interest provision proposal for that period should be acknowledged by a person in charge of accounts payable. This would enable you to print the definitive supplier interest provision report, based on which the supplier interest provision for the period can be posted. The supplier interest provision for a period is posted by entering a manual voucher. You can create an interim voucher for the manual voucher you enter if you want to automatically reverse the interest provision in the next period.