Interest Rates in Curo365, once applied to a Matter, will automatically create fees based on the rules that you set for Interest regarding Overdue Invoices. Interest Rates must first be Created, then Applied, and once Interest has accrued, the fees will need to be Generated onto an Invoice. Let’s get started!

To begin, we need to have access to the Business Centers. As always, if you don’t see the Business Center option under the Administration Subheading (or if you don’t see the Administration Subheading at all), you may not be an Admin, and you’ll either need to switch to the Admin App or you’ll need to get with an Admin to make you an Admin.

Next, select the Business Center in which you want to work. Usually, you’ll only have one.

Next, scroll down until you see the area for Interest Rates. Here, you’ll see a list of currently Active Interest Rates (Interest Rates currently in use in a Matter (if any)) and the ability to Add New Interest Rates. An Active Interest Rate simply means that its been created. To create a New Interest Rate, click New Interest Configuration.

Next, we’ll need to fill out the following pieces of Data:

-Name – The Name of the Interest Rate, shown on the Invoice and in your Fees.

-Effective Start Date - The date that must pass BEFORE Interest begins accruing. This is usually used at the beginning of your Curo365 Implementation so that an Effective Start Date and your Go-Live Date can somewhat coincide.

-Invoice Text – The Text that will appear in the Invoice, seen by the Client, an explanation of the Interest Fees.

-Percent – The % of the Remaining Balance of the initial Invoice.

-Days Past Due – Interest will start accruing this many Days after the Invoice was initially Due.

-Rate Period – The period in which the Interest will be applied, either Monthly or Annually

*NOTE* - The Monthly or Annual charges are actually calculating a fraction based on days. So if you set it to 5% Monthly, and the first month for Interest to be applied is November, then the system will actually break the 5% into 30ths (because November has 30 days) and calculate Interest daily, giving you an accurate Interest value anytime you print a Statement or look at the PDF Preview. The same would go for annual Interest - it would cut your total % into 365ths and apply a 365th daily.

***ALSO NOTE*** - It's very important to understand that the Interest IS NOT Compounding. If you add Interest in January, that Interest is not then calculated into the whole for deciding Interest in February. Additionally, the Interest is always calculated based on the current Balance AND NOT the Principle.

Once finished, be sure to Save *and then* Activate the Interest Configuration (the Activate option will only appear *after* you Save). Even though you can still apply it to Matters without Activating it, Interest won't actually be applied to Invoices during Invoice Generation. So hit the Activation button at the top of the screen if you're planning on using the Interest Configuration!

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*NOTE* When creating/using an Interest Rate Configuration, you'll need to be sure you also have an appropriate Payment Allocation Type in order to Allocate Payments accordingly. The new Payment Allocation Type for this must be given a Designation of Interest, and, as with all Allocation Types, it will allow you to select an Account associated with it so that you have the flexibility to use a separate Account set aside for Interest Payments. For a Guide on creating Allocation Types, click here.

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These Interest Charges will appear as Fees on the Invoice, shown below, but by default, they WILL NOT show as itemized entries on the Invoice unless you set up that feature in the Business Center.

To do that, let's head to your Business Center now by clicking the Entity on the left side of the screen.

Then choose your Business Center.

Find the Field that says Show Fee Breakdown on Invoice. This is for all Fees on a Matter (not only Interest Fees). When this is set to Yes, then a new, itemized section will appear at the bottom of Invoice PDF's showing each Fee listed out, including a Date and Description of the type of Fee.

Interest Rates can be applied to new or existing Matters in the General tab (default tab) for a Matter. Access your Matters on the left side of the screen, under the Matters Subheading.

Choose the Matter you want.

And scroll down to this Field, choose the Magnifying Glass to find what you need and add the Interest Rate. Likewise, when creating a brand-new Matter, you can add an Interest Rate on creation. Either way, save when finished and know that this Interest Rate will be applied when appropriate.

*NOTE* - You may have to choose Change View in order to see the Interest Rate if this is the first time that you’ve used it, as the system defaults to Active Interest Rates (and if this has never been used, it won’t be Active).

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​*NOTE* - An Interest Rate applied to an existing Matter with existing, overdue Invoices *DOES NOT* automatically apply Interest Configurations to the Invoices. This feature is *ONLY* for Invoices, moving forward.
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In instances where you've applied an Interest Configuration on Matters with existing Invoices, those Invoices will *NOT* have the Interest Configurations automatically applied to them. Only on FUTURE Invoices will the Interest Configuration automatically be applied.

If you'd like to include the Interest Configuration on existing Invoices where they'll start calculating today AND apply Interest Retroactively based on the Interest Configuration, then you'll need to go a specific Invoice by clicking the Invoice Entity on the left and choosing an Invoice.

If your Invoice is already Approved and unable to be edited, you'll see this message at the top left, that the Invoice cannot be edited and is Inactive, and you'll need to Revise the Invoice.

Then scrolling down until you find the Interest Configuration Field and applying the correct Configuration here.

Then Save & Close and, starting now, this Invoice will start accruing Interest, provided it's already reached its Past Due Date.

The system looks at two different Fields and their Values in order to determine when to begin accruing Interest. The Due Date of the Invoice and the number of days in the Days Past Due Field in the Interest Configuration.

Example:

My Invoice is due 10/1.

My Days Past Due is set to 30 days.

This means that 30 days after 10/1, on 10/31, the system will start accruing Daily Interest to be applied to future Invoices.

Interest Fees are not applied directly to the overdue Invoice, but rather accrue on subsequent Invoices. In other words, any time you generate an Invoice, Interest Fees will be added as new items when applicable. In order to Generate the Invoice for the Interest Rates, start by going to the Invoices Entity under the Accounting Subheading.

Then click Generate Invoices.

Once here, you’ll see a brand-new option added since we added the Interest Rates – Create fees for un-invoiced interest. Leaving that checked before you click OK will apply the proper Fee Codes for the Interest and ensure that they are added to the Invoice.

The second option, Ignore for all bills with zero balances, is there for the rare instances where a) Interest has accrued between sending Invoices and b) the Invoices had been fully paid before the NEXT Invoice.

Example: On August 1st, my Invoice has a balance of $500 and is 30 days past due. By August 15th, 15 days worth of Interest has accrued, and also on August 15th, the Client sends a Payment and pays the Invoice's previous, August 1st Balance of $500. Now the Invoices Balance has been paid in full, but there's still 15 days worth of Interest floating out there in the ether. If you DON'T check the second box, then a very small Invoice will still be created for this Client, comprising the amount of Interest that was accrued during the example above.

In order to access this new Invoice/the new Invoices, find the initial, overdue Invoice in your Invoice list and select it.

Or you can simply change the View above to a new option, Invoices with Interest Balance.

Then click the Related Tab and choose Interest to see the list of Interest Fees applied to this Invoice. That list of Fees will also include a Invoice Number, and that Invoice Number is the specific Invoice for the Interest Fees.

Bonus Image! This is how your Interest will appear on Invoice PDF's!

For more information on Generating or what to do with created Invoices, click here for a full Guide!

And as is the case with any Invoice that needs to be Paid, in order to Pay the Interest Invoice, you'll need to Allocate funds from a Payment. For a Guide on Payments and Allocations, click here!