Interest Definition Best Practices

This page presents a series of recommendations about defining interests to be used in conjunction with banking products and contracts based on these banking products. For step by step instructions on how to add interests and how to fill in each field on the page, please read the dedicated Interests section.

General Notes

  • The validity period of an interest (the period between the values entered in the Valid from and Valid to fields) is the taken into consideration when searching for the values of each interest.

  • The system performs validations to ensure that the time intervals for interest validity do not overlap. It also ensures that the interest has a valid value at any given time of a contract's life cycle.

  • Penalty calculations are applied to overdue payment amounts in contracts, while interests are applied to remaining payment amounts.
    You can specify that an interest is penalty if you select the Is Penalty checkbox in the Interest page:

We advise against defining collection interests for penalties. Instead, create interests for penalties using Business Formulas.

The following sections display examples of each interest type's typical definition: