When a dated transaction's due date arrives, it is necessary to close it in cash or with a contra account. When closing the transaction before or after the due date; the current account becomes a debit or credit account in proportion to the amount calculated with the following method. This amount is referred as Due Date Difference.
Due Date Difference Calculation= Closed Amount * Interest Rate * Number of Days
30
The interest rate of the formula above is the Interest Rate specified in the payment plan that has been used in the AR/AP transactions that made the account go into debt or made creditor. And because this rate is monthly, when calculating the due date, the multiplication total is divided to 30.
The number of days info is found by the following formula:
(Number of Days = Closure Date – Due Date)
If the AR/AP made a delayed payment, the due date difference is calculated as debit; if it paid its debit previously, the due date difference is calculated as credit.
Due Date Difference Invoice
If there is a due date difference amount for an AR/AP because of the reasons mentioned above, this amount has to be billed in order to collect it. This transaction is done by using due date difference invoice.
There are two types of due date invoices:
- Purchase Due Date Diff. Invoice: This invoice is written to the company by the AR/AP who paid its debt before the due date. That is to say, it is the customer's work. The user only enters this invoice info to the program and saves it. This invoice takes place in debit tracking window as two lines. The first line lists the invoice net total as credit and the second line lists the debit (due date difference) with the name of Due Date Transaction.
- Sales Due Date Diff. Invoice: This invoice is written by the company to the AR/AP who paid its debt after the due date. This invoice takes place in debit tracking window as two lines too. The first line lists the invoice net total as debit and the second line lists the credit (due date difference) with the name of Due Date Transaction.
The due date differences for these invoices are calculated by using "Due Date Difference Calculation" option located in the F9 menu of the Amount field with Due Date Difference Calculation Report. This report's filters and their usage methods are as follows:
F. Currency Type: Used to select the f. currency for the transactions that due date difference will be applied to.
Updating:
- Up to date
- Debt Closing
When "Up to date" is selected, the report is taken without any transaction in debit closing window. When "Debt Closing" option is selected, all the transactions, as of the selections in "Debit Closing" filter line, are closed and the calculated balance is vanished with an opposite line contains same amount.
Debit Closing:
- No Proceeding
- Close Outstandings
- Close all
When "No Proceeding" is selected in this filter, the report is taken without any transaction in debit closing window.
When "Close Outstandings" is selected, the report is taken after all the outstandings transactions are closed in debit closing window.
When "Close all" is selected, all the transactions (include previously closed ones) in debit closing window is closed by using FIFO method.
Transaction Date: (Slip date is assigned as default) In this filter line all the transactions entered till the specified date is taken into consideration and the report is taken according to this date.
After selecting all the required filter lines and entered the variables, a due date difference amount is calculated irrespective of the AR/AP credit or debit balance.
If the calculated due date difference gives credit balance for the related AR/AP, it is not transferred to the invoice.
If the calculated due date difference gives debit balance for the related AR/AP, it is transferred to the invoice. When transferring the balance, a payment plan is assigned to the invoice by the program automatically.
Payment Plan Information
Code: VFF-0001
Days: All
Interest Date: If a payment plan has been defined for AR/AP previously, that payment plan's interest rate is used here. If there is not a predefined payment plan in AR/AP card or if its interest rate is 0, then the payment plan's interest, added to the due date invoice, is 0.
Lines: This payment plan contains one line. In formula field there is P1 (VAT included transaction amount) parameter. The average due date is calculated by the following formula:
Average Due Date:
Due Date1 * Due Date1 + Due Date2 * Due Date2 +.....Due Date1 + Due Date2 +.......
and if, Average Due Date > Invoice Date,
Number of Days = Average Due Date – Invoice Date
If average due date is earlier than the invoice date, a payment plan will not be assigned since the number of days will be negative.
When calculating the average due date, the "Credit" type balances are taken into account as "-" in average due date calculation transaction.
How is the Average Delay Calculated?
The average delay is divided in two categories:
- Average Delay of AR/AP
- Average Delay of the Company
Both categories are calculated using the same formula. The only difference is that different transaction groups are used in calculation.
Average Delay of AR/AP:
The average delay resulting from AR/AP transactions closing each other. AR/AP transactions are listed below.
Average Delay of the Company:
The average delay resulting from company transactions closing each other. Company transactions are listed below.
Average Delay is calculated as:
((Payment Date 1-Due Date 1)*Amount 1)((Payment Date 2–Due Date 2)*Amount 2)....
Total Amount