Interest is a legitimate return on money invested and chargeable in the business world on loans and also on delayed payments. Interest can be calculated on the basis of Simple or Compound Interest. With Tally.ERP 9 you can obtain reports on interest calculated based on the configurations made. Interest is calculated on outstanding receivables or payables.
To enable interest calculation
1. Click F11 > F1(Accounting Features).
2. Set the option Activate interest calculation to Yes.
3. Press Ctrl+A to save the Company Operations Alteration.
Interest Calculation in Simple Mode
Interest Calculation in Advance Mode