Late-payment interest in dunning
Once a payment deadline is missed, dunning notices can be issued with late-payment interest. teamspace calculates interest to the day and applies it automatically.
Payments and late-payment interest
In Germany, the late-payment interest rate is the central-bank base rate plus a surcharge:
- Up to 5 % for consumer customers
- Up to 9 % for business customers
The sum is the late-payment interest rate. It is usually charged on the gross amount, because most companies are taxed on an accrual basis (VAT is owed when the receivable arises, not when paid).
Interest is calculated to the day from the moment the due date is missed. Each dunning stage can apply a different rate and fix fees. The complete dunning run can be automated; fees and interest are computed and applied automatically.
Incoming payments can be captured manually or via the bank interface, in your home or a foreign currency. The payment status changes to partial or fully paid. The Payments tab inside each invoice bundles all payment elements.
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