Set up interest charges in Sage Timeslips US

Summary

Sage Timeslips US supports simple and compound interest charges on overdue client balances through client billing settings. Interest calculations use the last approved bill date and configured annual rates.

Resolution

Configure client interest settings

  1. Select Names, Client Info, and then choose the client.
  2. In Bills, Charges, enter the Annual interest rate.
  3. Select Type of interest, **Charge interest at ** number of days, and **Grace period ** preferences.
  4. Review ** Last bill date**, which determines interest accrual and reflects the last approved bill date.

NOTE:

Sage Timeslips US calculates interest using the billing and aging date minus ** Last bill date**.

Understand simple interest calculation

EXAMPLE:

Bishop’s last bill approval date was July 1, with a $2,000 overdue balance, including $30.00 past interest.

  • Determine the days overdue:
    • [Billing and aging date] – [Last bill date] = 31 days
  • Determine the year portion:
    • [Days overdue] / [Number of days in a year] = 31 ÷ 365 = .0849315 years
  • Calculate the interest rate portion:
    • [Part of one year that has passed] x [Interest rate] = .0849315 × 0.18 = ** .0152876**
  • Calculate the interest due:
    • [Calculated interest rate] x ([Amount overdue] – [Interest overdue]) = .0152876 × ($2,000.00 - $30.00) = $30.1165

Sage Timeslips US rounds the amount to $30.12 and applies it to the bill

 Understand compound interest calculation

EXAMPLE:

Bishop’s last bill approval date was on July 1, with a $2,000 overdue balance, including $30.00 past interest.

  • Determine days overdue:
    • [Billing and aging date] – [Last bill date] = 31 days
  • Determine the year portion:
    • [Days overdue] / [Number of days in a year] = 31 ÷ 365 = .0849315 years
  • Calculate the interest rate portion:
    • [Part of one year that has passed] x [Interest rate] = .0849315 × 0.18 = .0152876
  • Calculate the interest due:  
    • [Calculated interest rate] x [Amount overdue] = .0152876 × $2,000 = $30.5752

Sage Timeslips US rounds the amount to $30.58 and applies it to the bill.

 

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Solution Properties

Solution ID
224924550062743
Last Modified Date
Mon Apr 06 15:05:31 UTC 2026
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