Interest is calculated by:

Interest Start:  

1. [Check Date] is the starting point for calculating interest.

   1. If [Check Date] is missing, then [Invoice Date] is used instead.

   2. If [Invoice Date] is missing, then [Created Date] is used.
      
      

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2. If the case’s [Financing Start Date] is set, it will be used when [Check Date] is before [Financing Start Date].
   
   

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 Interest End:

[Date of Distribution] is used. If [Date of Distribution] is missing, then [Settlement Date] is used.

Interest Rate:

The rate from the settlement screen is used. If the rate from the settlement is set to Auto, rates from the picklist Settlement Interest Fixed Rates are applied.

Additional configurations:

Disbursements can be excluded from interest based on Disbursement Type in the System Parameter “Disbursement types to exclude from expenses table merge codes”.

References

Interest on disbursements
Variables:
[Is Financed] = Case Financing setup on the Disbursements page. Case marked as Financed.
[Financing Start Date] = Case Financing setup. If not null, do not calculate interest before this date.
[Is Prior Financed] = Case Financing setup. If True, calculate interest even if [Disburement Date] is before [Financing Start Date][Specific Status] - SP "Disbursement status that indicates that the cost(expense) was financed...". If not null, interest is calculated only on disbursements in this status.
[Excluded Types] - SP "Disbursement types to exclude from expenses table merge codes". Disbursements with selected types are excluded from interest calculation.
[Ignore previous] - SP "Ignore previous settlements when calculating interest on disbursement if its interest amount is 0"
[Is Financed By Default] - SP "Charge interest on case expenses by default". All cases are considered as Financed, regardless case's [Is Financed] value.[Disbursement Date] = first not null value from the following: If [Specific status] is not null then [Status Date] -> [Check Date] -> [Invoice Date] -> [Created Date]
[Interest End Date] = if [Date of Distribution] is not null then [Date of Distribution] else [Settlement Date].
[Disbursement Interest Start] = Start date to calculate interest for specific disbursement. If [Disbursement Date] > [Financing Start Date] then use [Disbursement Date] else [Financing Start Date]

Interest is calculated on all client disbursements based on the following rules:

1. If [Ignore previous] is True: find the previous settlement with [Settlement Date] before [Interest End Date] and [Interest on Disbursement] not equal to zero and exclude all disbursement with [Disbursement Date] before or equal to that settlement's [Interest End Date]

2. If [Interest Rate] is set to Auto, use rates from the picklist "Settlement Interest Fixed Rates" for [Effective Date]
   
   

Related Pages

Negotiations/Settlement | Settlements Panel

Disbursements