Negligence interests and costs – iController Guide

Company details: interests and costs

In the Main Settings under Company details it is possible to configure the negligence interests and damages costs per entity.

Calculation of the interests

The interest is calculated on annual basis (365 days) and per overdue debit invoice.

Example:

A client has two outstanding invoices: one of 500 € and 450 days due; a second invoice of 1000 € and 100 days due.
The negligence interests in the company details is installed on 10 %
The calculation is as follows: ((450/365) * 10% * 500) + ((100/365) * 10% * 1000) = 89,04 €

Calculation of the costs (penalty clause)

1. Damages per debtor (standard per document): checkbox is not used

The percentage is calculated per outstanding debit invoice.
If the outcome is lower than the filled in 'Minimum cost of damages', the minimum cost will be charged.

Example given:

A client has one overdue invoice of 250 € and a second of 1000 €
The penalty clause is 10% and there is a minimum cost of damages of 50 €.
The calculation is as follows: (250 * 10%) + (1000 * 10%) = 50 € (normally it would be 25 € but 50 € is set as the minimal cost) + 100 € = 150 € total cost

2. Damages per debtor (standard per document): checkbox is used

The percentage is calculated on the total outstanding amount of the debtor

Example given:

A client has one overdue invoice of 250 € and a second of 1000 €
The penalty clause is 10% and there is a minimum cost of damages of 50 €.
The calculation is as follows: (1250 * 10%) = 125 €

Note: It is recommended to check the Damages per debtor if you choose for a significant minimal cost (e.g. 50 €), to avoid that the total cost becomes too high when there are multiple outstanding documents with lower amounts.

Procedure step costs

Instead of using the general costs as defined in the company details, it is also possible to install a cost per procedure step in the Procedures settings. This amount will be calculated in the 'costs' tag on the reminder when the leading document is in this specific procedure step.

Note: Contact our support team when the Costs of step field is not visible in the procedure settings.

Usage of interests and costs

When the interest and cost fields are filled in in the company details, it is possible to decide in which of the procedural steps to pass these on the additional costs to the debtor.

In each of the reminder templates, the replaceable tag with interests and/or costs can be used to communicate the total (due) amount.

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