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https://help.tallysolutions.com/docs/te9rel50/Advanced_Features/Advanced_Accounting_Features/Interest_Calculation_in_Simple_Mode.htm

Interest Calculation in Simple Mode

To activate interest calculation,

  1. Go to Gateway of Tally > F11: Features > Accounting Features.

  2.  Set Activate Interest Calculation to Yes.

  3.  Set Use Advanced Parameters to No.

Interest calculations on outstanding balances

Interest calculation on outstanding balances is allowed for any ledger account. specify the interest rate and style of calculation.

To enable interest calculations on outstanding balances,

  1. Go to Gateway of Tally > Accounts Info.> Ledgers > Alter (Single) > XY Bank (bank account)

  2. Set Activate Interest Calculation to Yes. The Interest Parameters screen appears.

  3. In the Calculate Interest Based On ? field select the Date Type, as required.

  4. Set the option Include Transaction Day for Interest Calculation? to Yes to calculate interest from the date of transaction.

  5. Enter the rate of interest in the field Rate.

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

Note: If the interest style selected is 365-day Year, then the interest will be calculated for 365 days irrespective of the number of days in the calendar year. If Calendar Year is selected as the interest style, then the rate of interest will be calculated on 365 days or 366 days, depending on the number of days as per the calendar.

  1. Press Enter to save.

Report on Interest Calculated on outstanding balances

To view Interest Calculations Report,

Go to Gateway of Tally > Display > Statements of Accounts > Interest Calculations > Ledger > XY Bank (Bank Account)

Interest calculation transaction by transaction

Activate and specify interest calculations in ledger masters.

Interest calculation can be done bill-by-bill for accounts grouped under Sundry Debtors and Sundry Creditors.

To activate interest calculation for party ledgers,

  1. In the party ledger alteration screen, set Activate Interest Calculation to Yes. The Interest Parameters screen appears.

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

  3. Set Over-ride Parameters for each transaction to Yes to change the parameters during voucher or invoice entry.

  4. Set the option Include Transaction Day for Interest Calculation? to Yes to start calculating interest from the date of transaction.

  5. Enter the rate of interest in the field Rate.

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

Report on Interest Calculated on outstanding transactions/bills

To view the Interest calculated,

Go to Gateway of Tally > Display > Statements of Accounts > Interest Calculations > Ledger >

This report is similar to the Bill-wise Outstanding Statement. The last column gives the interest amount on the transaction. Select the line to be viewed in detail for its calculations.

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