The option Include transaction date for interest calculations: For amounts added, For amounts deducted is provided in the Interest Parameters screen. This option allows you to exclude or include the transaction date for amounts added and deducted.
Amounts added refers to additions to a ledger, based on the nature of the ledger (i.e., Assets or Liabilities, Expenses and Incomes).
For example:
For a Creditor, all the credits (through purchases and other transaction types) are additions.
For a Debtor, all the debits (through sales and other transaction types) are additions.
For an Expense head, all debits are additions
For an Income head, all credits are additions.
Similarly, for the user borrowing money (Loans Payable) would be additions.
Amounts deducted refers to deductions to a ledger, based on the nature of the ledger (i.e., Assets or Liabilities, Expenses and Incomes).
For example:
For a Creditor, all debits (through payments and other transaction types) are deductions.
For a Debtor, all credits (through receipt and other transaction types) are deductions.
For an Expense head, all credits are deductions
For an Income head, all debits are deductions.
Similarly, for the user receiving money back from borrower (Loans Payable) would be deductions.