EDITION: Standard and Enterprise
RESOLUTION
The Credit APR % is used to calculate the COCBalance field which is the Cost of Credit. The Cost of Credit is the daily dollar amount for carrying your customers AR balance based on the Credit APR % set within Site Options. The Credit APR % is set by default to 10% and should be updated within Site Options based on the rate your bank has set for your short term lending rate.
This calculation is based on individual invoices with a balance. Calculated as:
(Number of Days since Invoice Date) * BalanceDueHC * (POWER(1 + ((CreditAPR% / 12.00000000) / 100.00000000), 12) - 1) / 365.00000000)
For example:
Customer ABC has 2 invoices with a balance:
The total is then multiplied by the APR calculation:
APR Calculation - Excel formula =(POWER(1+((CreditAPR%/12)/100),12)-1)/365
NOTE: Credit APR % is setup/modified in Site Options (Admin > Settings & Utilities > Site Options)