Calculate Interest
This tab will automatically generate interest charges on overdue accounts. You
should Calculate interest before
printing your monthly statements
. Before doing this you must configure a few settings.
Calculate interest as at period
This determines the
Financial Period
at which interest is calculated. You should select the period that has just
come to an end. For example, if you have just finished capturing your
invoices for the period June 2011 then you should select
June 2011
as the period.
Transaction date
This determines the date of the transactions that will
be generated.
Annual interest rate
This is the annual percentage that will be used to calculate interest.
Panacea assumes that interest will be charged monthly, so the Annual
interest rate is actually divided by 12 before being multiplied by the
outstanding amount on each account.
Ignore if charge is less than
This allows you to set a minimum interest charge. If an
account's interest charge is below this amount then no interest will be charged
on that account. For example, if the outstanding balance on an account is
only R5 then the interest charge would be 4 cents (based on an Annual
interest rate of 10%). If you set Ignore if charge is less than to
R2, for example, then Panacea would not charge interest on this account since 4c
is less than R2.
Note: the default values for the Annual interest rate and
Ignore if charge is less than are taken from the
Interest tab
of Practice Setup (System  Practice Settings  Practice Setup).
When you are happy with the settings click Calculate interest now
to start the process. Panacea will step through each account (see right)
and will carry out these steps:
 Panacea will calculate the
ageing
on the account to determine how overdue the balance is.
 Panacea will then determine the account's interest setting. See
Interest Defaults
for information on how this is done.
 If Panacea determines that interest should be charged then Panacea will
calculate an interest charge on the overdue amount. For example, if
the interest setting is from 60 days then interest will only be
calculated on the portion of the balance that is 60 days and over.
Note that you can carry on with other tasks while Panacea is calculating
interest as the process is carried out in the background.

Once Panacea
has finished calculating interest it will report that it Completed
successfully. You can now click on View to see that
actual interest charges. This will take you to the
Other Transactions tab
where you will be able to perform various tasks, e.g. view, edit, delete and print
the transactions.
