Tally.ERP 9 allows you to obtain reports on interest calculated by Tally.ERP 9 based on the instructions you furnish. Interest figures are typically desired in the following situations:
On outstanding balance amounts
On outstanding bills/invoices/transactions (Receivable and payable)
Tally.ERP 9 gives you an tremendous capability to obtain interest implications on both.
Interest is a legitimate return on money invested and chargeable in the business world on loans and also on delayed payments. Interest can be calculated on the basis of Simple or Compound Interest.
The Activate Interest Calculation field is displayed in the Ledger Creation screen only, if Activate Interest Calculations is set to Yes in F11: Features.
Set this field to Yes for each specific ledger account for which interest is to be calculated.
More:
Interest Calculation in Simple Mode
Interest Calculation in Advance Mode
Interest Calculation on Ledger Balances
Statement of Interest Due on Invoices