Interest and Exchange Rate Differences Module is a practical and easy-to-use application for calculating interest, as well as an application for calculating exchange rate differences. A portion of the module can also be used by companies that do not have other modules of the 4D Wand software solution. Naturally, this refers to interest (free calculation), while the full effect of this module is achieved when using interest and exchange rate differences together with data from financial accounting.

An important detail, for anyone who keeps inventory accounting (wholesale or retail) and in financial accounting manages A/R and A/P ledgers for goods and services, is that there are pre-operations for Interest and Exchange Rate Differences that we call pre-calculations of interest and pre-calculations of exchange rate differences. Since in our conditions it is difficult to operate logically and to charge interest and exchange rate differences in a standard manner, these pre-calculations serve for “simulation”, assessment, and to demonstrate to a partner what the actual situation is. If you decide to implement and finalize any of the pre-calculations, you can do so automatically from the respective table.

You can calculate interest as a free calculation, or calculate interest based on the A/R–A/P ledger. When you choose one of the methods, you can then calculate interest using defined rates (you may define an unlimited number of periods), a fixed annual rate, or a fixed monthly rate.

The sub-conditions you can set are:

• minimum amount of interest for which a document is generated
• percentage of principal from turnover for which the calculation is generated
• define a tax-exempt rate
• number of days you tolerate, during which interest is not calculated

Calculation of exchange rate differences is performed based on the A/R–A/P ledger, and the sub-conditions you can set are:

• minimum amount of exchange rate differences for which a document is generated
• percentage of exchange rate change for which a document is generated
• number of days you tolerate, during which exchange rate differences are not calculated
• the exchange rate from your exchange rate list used for calculating the exchange rate difference (buying, middle, selling)