About Credit Charging

Within Mamut Business Software, the credit charging feature allows you to charge late paying customers for lost interest income. Lost interest income due to customers who make late payments can reach a significant amount in the course of the year.

You have different options for claiming lost interest income. You can chose to add credit charge interest to your payment reminders, or you can send separate credit charge invoices after the debt has been paid. Please note that if you add credit charge interest to your payment reminders, the interest will accrue until the debt has been paid in full. Therefore, if you wish to claim the interest that has accrued in the period between issuing the payment reminder and the actual payment date, you can create a separate credit charge invoice.

Note! In order to demand interest payment on overdue invoices, there are formal requirements that must be met in regards to the original invoice and the credit charge invoice. Please refer to the relevant laws and regulations or contact your accountant for more information.

In order to begin using credit charging, you must first define the appropriate settings in Mamut Business Software. Once you have defined the appropriate settings for your company, you are able to create credit charge invoices via the wizard for Credit Charging. Read more in Getting Started with Credit Charging.

Tip! Rates for calculating interest are fixed for defined periods. Please refer to the relevant laws and regulations regarding charging interest for your country. For more information regarding calculating the correct interest rate, refer to this website: http://www.deti.ie/enterprise/smes/latepay.htm.

You can also create payment reminder invoices with credit charges included via the wizard for Payment Reminders. Read more about this in Generating Payment Reminders.