HelpWiki Highnix - User contributions [en]

Gross Margin Scheme

2026-09-13T13:45:15Z

Khkoh: /* Create a GST Tax Type */

__FORCETOC__

Reference: https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/general-gst-schemes/gross-margin-scheme?utm_source=chatgpt.com

= IRAS Gross Margin Scheme (GMS) =

== Overview ==

# The '''Gross Margin Scheme (GMS)''' is a special GST scheme administered by the Inland Revenue Authority of Singapore (IRAS). It allows eligible businesses dealing in second-hand goods, motor vehicles, and certain qualifying products to account for GST only on the '''gross margin''' (selling price less purchase price), instead of on the full selling price.
# Under this scheme, GST is calculated only when the selling price exceeds the purchase price. If the selling price is equal to or lower than the purchase price, no GST is payable on that transaction.
# For detailed eligibility requirements and operating rules, please refer to the official IRAS webpage:
# '''Gross Margin Scheme (GMS)''' [https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/general-gst-schemes/gross-margin-scheme?utm_source=chatgpt.com https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/general-gst-schemes/gross-margin-scheme]
----

= Highnix Setup =
Before processing transactions under the Gross Margin Scheme, the following setup is required.

== Create a GST Tax Type ==
Create a GST tax type for GMS.

'''Suggested setup'''
{| class="wikitable"
!Field
!Value
|-
|Tax Type
|'''NA-GMS'''
|-
|GST Rate
|'''9.0%'''
|-
|Sales GL Account
|'''2253 Output GST-NA'''
|}
'''Note'''

The prefix '''"NA"''' is recommended because GST is '''not displayed on customer invoices''' under the Gross Margin Scheme. The GST is computed internally and posted into the GST Output account (GL Account 2253).
----

== Create a Sales Tax Group ==

# Create a sales tax group.
## '''Suggested name'''
## '''Sales Tax-GMS-NA'''
## '''Include Shipping:''' '''No''' '''('''Shipping charges are not part of the Gross Margin Scheme calculation.)
----

== Create a Purchase Tax Group (Optional) ==

# If your business also purchases goods from suppliers using the Gross Margin Scheme, you may create a purchase tax group.
## '''Suggested name'''
## '''Purch Tax-GMS-NA:''' This setup is optional and depends on your business requirements.
----

== Create an Item Tax Type ==

# Under '''Item Tax Exemption''', create a new item tax type.
# Example:
## '''GMS-Gross Margin Scheme - 9%'''
# Configure this item tax type so that it is '''exempt from every GST tax type except the GMS tax type (NA-GSM)''' created earlier. This ensures that GMS items cannot accidentally be taxed using the normal GST calculation.
----

== Configure Inventory Items ==

# For every inventory item that will be sold under the Gross Margin Scheme:
## Open the Inventory Item setup.
## Set the '''Item Tax Type''' to:
### '''GMS-Gross Margin Scheme - 9%'''
----

== Configure Customers ==

# Customers purchasing goods under the Gross Margin Scheme should use the GMS Sales Tax Group.
# Example:
## '''Sales Tax Group'''
## '''Sales Tax-GMS-NA'''
----

= Purchasing Goods =

# When receiving or purchasing goods under the Gross Margin Scheme, users '''must enter the Serial Number or Batch Number''' for each qualifying item.
# The system uses this information to identify the original purchase cost when the item is subsequently sold.<blockquote>'''Important:''' Each Serial Number or Batch Number should uniquely identify the purchased item. Accurate entry is essential because the GST calculation is based on the purchase price of that specific item.</blockquote>
----

= Sales Processing =

# After the initial setup is completed, users simply process purchase and sales transactions as normal.
# No additional GST calculation is required during invoicing.
# The system automatically:
## Retrieves the original purchase cost using the Serial Number or Batch Number.
## Calculates the gross margin.
## Computes the GST payable on the gross margin only.
## Records the GST into the configured GST Output GL account.
## Includes the transaction in the GST reporting.
# Customer invoices continue to be printed without displaying GST separately, in accordance with the Gross Margin Scheme requirements.

----

= GST Reporting =

# All Gross Margin Scheme transactions are automatically included in the GST reporting process.
# When the GST Tax Report is generated, GMS transactions will appear under the configured GMS tax type together with the GST amount calculated by the system.
# No manual adjustment is required.

----

= Important Notes =

# Gross Margin Scheme items must not be mixed with normal GST-taxable items within the same invoice.
# Every GMS item must have a valid Serial Number or Batch Number recorded during purchase.
# The purchase price used for GST computation is taken from the original purchase transaction of the corresponding Serial Number or Batch Number.
# If the selling price is less than or equal to the purchase price, no GST is payable for that item.
# Shipping charges are excluded from the Gross Margin Scheme calculation.

Late Payment Interest

2026-09-12T09:05:02Z

Khkoh: /* Preparation */

__FORCETOC__

== Late Payment Interest (LPI) Module User Guide Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

== Understanding Late Payment Interest ==

=== What is Late Payment Interest (LPI)? ===
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

==== Statutory or By-Law Provisions ====
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

==== Contractual Agreements ====
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==

Compounded interest occurs when previously charged interest becomes part of the amount used for subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be applied when expressly agreed upon by the contractual parties and permitted under the applicable laws or regulations.

The Highnix LPI Module supports both non-compounded and compounded interest calculations.
# '''Note:''' When '''LPI on LPI''' is enabled, '''new''' Late Payment Interest (LPI) invoices generated thereafter are flagged as eligible for future LPI calculations. If such an LPI invoice remains unpaid after the applicable grace period, its outstanding amount will be included in subsequent LPI calculations, resulting in compounded interest. LPI invoices generated before '''LPI on LPI''' was enabled remain non-compounded and are not retrospectively included in future LPI calculations.

== Configuring Late Payment Interest Terms ==
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days. That means, the interest will start from the next day after the grace period (30 days).

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied. If there is any outstanding payment (even with after partial payment), after this additional grace period, the interest will start 1 day '''after the Grace Period''', not after the Additional Grace Period.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

== Defining the Late Payment Interest Item ==
Late Payment Interest is billed using a dedicated service item.

=== Default Item ===
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

=== Changing the LPI Item ===
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → System and General GL'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

== Configuring Compounded Interest for a Customer ==
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

== Mixing LPI with Normal Invoice Items ==
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

== Recurring LPI Invoice Generation ==

The Recurring LPI Invoice feature allows users to automatically generate Late Payment Interest (LPI) invoices on a regular basis without having to create each invoice individually. This can save a significant amount of time, particularly for MCSTs, Management Corporations and property management companies that manage a large number of property units and need to apply late payment interest to overdue payments.

Once the recurring LPI setup has been configured, the system can generate the applicable LPI invoices based on the selected date. This helps to simplify the LPI billing process and reduces the amount of manual work required.

=== Preparation ===

Before generating recurring LPI invoices, the '''Recurring LPI''' setup must first be configured.

# Navigate to '''Sales > Maintenance > Recurrent LPI'''.
# Set up the recurring LPI by completing the required information. This defines the rules and parameters that the system will use when generating the LPI invoices. For '''MCSTs or property management companies''', users can select a '''Sales Group''' instead of selecting individual customers. A Sales Group allows customers with common characteristics to be grouped together for billing purposes. For example, customers may be grouped according to:
## Number of bedrooms, such as '''2-bedroom''' or '''3-bedroom''' units; or
## Share value, such as '''100 share-values''' or '''130 share-values'''.
# Once a Sales Group is selected, all customers belonging to that group will be included and billed according to the recurring LPI setup when the recurring LPI invoice is generated.
# Review the information entered and click '''Save'''.

Once the recurring LPI setup has been saved, the system is ready to generate the recurring LPI invoices.

=== Create Recurring LPI Invoices ===

To generate the recurring LPI invoices:

# Navigate to '''Sales > Transactions > Create and Print LPI Recurrent Invoices'''.
# Select the required '''date'''. This is an important step because the system will calculate and generate the LPI based on the selected date. The selected date determines which outstanding amounts are subject to LPI according to the recurring LPI settings.
# Click the '''Create LPI Invoice''' icon on the right to generate the applicable LPI invoices.
# The system will generate the LPI invoices based on the recurring LPI configuration and the selected date.
# Once the invoices have been generated, users can either '''print the invoices''' for distribution or '''email the invoices directly to the customers'''.

The recurring LPI process eliminates the need to create LPI invoices individually and is particularly useful for property management operations where LPI invoices need to be generated regularly for multiple property units.

== Recommended Practice ==
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

Late Payment Interest

2026-09-12T09:03:35Z

Khkoh: /* Preparation */

__FORCETOC__

== Late Payment Interest (LPI) Module User Guide Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

== Understanding Late Payment Interest ==

=== What is Late Payment Interest (LPI)? ===
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

==== Statutory or By-Law Provisions ====
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

==== Contractual Agreements ====
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==

Compounded interest occurs when previously charged interest becomes part of the amount used for subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be applied when expressly agreed upon by the contractual parties and permitted under the applicable laws or regulations.

The Highnix LPI Module supports both non-compounded and compounded interest calculations.
# '''Note:''' When '''LPI on LPI''' is enabled, '''new''' Late Payment Interest (LPI) invoices generated thereafter are flagged as eligible for future LPI calculations. If such an LPI invoice remains unpaid after the applicable grace period, its outstanding amount will be included in subsequent LPI calculations, resulting in compounded interest. LPI invoices generated before '''LPI on LPI''' was enabled remain non-compounded and are not retrospectively included in future LPI calculations.

== Configuring Late Payment Interest Terms ==
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days. That means, the interest will start from the next day after the grace period (30 days).

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied. If there is any outstanding payment (even with after partial payment), after this additional grace period, the interest will start 1 day '''after the Grace Period''', not after the Additional Grace Period.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

== Defining the Late Payment Interest Item ==
Late Payment Interest is billed using a dedicated service item.

=== Default Item ===
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

=== Changing the LPI Item ===
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → System and General GL'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

== Configuring Compounded Interest for a Customer ==
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

== Mixing LPI with Normal Invoice Items ==
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

== Recurring LPI Invoice Generation ==

The Recurring LPI Invoice feature allows users to automatically generate Late Payment Interest (LPI) invoices on a regular basis without having to create each invoice individually. This can save a significant amount of time, particularly for MCSTs, Management Corporations and property management companies that manage a large number of property units and need to apply late payment interest to overdue payments.

Once the recurring LPI setup has been configured, the system can generate the applicable LPI invoices based on the selected date. This helps to simplify the LPI billing process and reduces the amount of manual work required.

=== Preparation ===

Before generating recurring LPI invoices, the '''Recurring LPI''' setup must first be configured.

# Navigate to '''Sales > Maintenance > Recurrent LPI'''.
# Set up the recurring LPI by completing the required information. This defines the rules and parameters that the system will use when generating the LPI invoices. For '''MCSTs or property management companies''', users can select a '''Sales Group''' instead of selecting individual customers. A Sales Group allows customers with common characteristics to be grouped together for billing purposes. For example, customers may be grouped according to:
#* Number of bedrooms, such as '''2-bedroom''' or '''3-bedroom''' units; or
#* Share value, such as '''100 share-values''' or '''130 share-values'''. Once a Sales Group is selected, all customers belonging to that group will be included and billed according to the recurring LPI setup when the recurring LPI invoice is generated.
# Review the information entered and click '''Save'''.

Once the recurring LPI setup has been saved, the system is ready to generate the recurring LPI invoices.

=== Create Recurring LPI Invoices ===

To generate the recurring LPI invoices:

# Navigate to '''Sales > Transactions > Create and Print LPI Recurrent Invoices'''.
# Select the required '''date'''. This is an important step because the system will calculate and generate the LPI based on the selected date. The selected date determines which outstanding amounts are subject to LPI according to the recurring LPI settings.
# Click the '''Create LPI Invoice''' icon on the right to generate the applicable LPI invoices.
# The system will generate the LPI invoices based on the recurring LPI configuration and the selected date.
# Once the invoices have been generated, users can either '''print the invoices''' for distribution or '''email the invoices directly to the customers'''.

The recurring LPI process eliminates the need to create LPI invoices individually and is particularly useful for property management operations where LPI invoices need to be generated regularly for multiple property units.

== Recommended Practice ==
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

Late Payment Interest

2026-09-12T09:01:56Z

Khkoh: /* Preparation */

__FORCETOC__

== Late Payment Interest (LPI) Module User Guide Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

== Understanding Late Payment Interest ==

=== What is Late Payment Interest (LPI)? ===
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

==== Statutory or By-Law Provisions ====
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

==== Contractual Agreements ====
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==

Compounded interest occurs when previously charged interest becomes part of the amount used for subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be applied when expressly agreed upon by the contractual parties and permitted under the applicable laws or regulations.

The Highnix LPI Module supports both non-compounded and compounded interest calculations.
# '''Note:''' When '''LPI on LPI''' is enabled, '''new''' Late Payment Interest (LPI) invoices generated thereafter are flagged as eligible for future LPI calculations. If such an LPI invoice remains unpaid after the applicable grace period, its outstanding amount will be included in subsequent LPI calculations, resulting in compounded interest. LPI invoices generated before '''LPI on LPI''' was enabled remain non-compounded and are not retrospectively included in future LPI calculations.

== Configuring Late Payment Interest Terms ==
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days. That means, the interest will start from the next day after the grace period (30 days).

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied. If there is any outstanding payment (even with after partial payment), after this additional grace period, the interest will start 1 day '''after the Grace Period''', not after the Additional Grace Period.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

== Defining the Late Payment Interest Item ==
Late Payment Interest is billed using a dedicated service item.

=== Default Item ===
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

=== Changing the LPI Item ===
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → System and General GL'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

== Configuring Compounded Interest for a Customer ==
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

== Mixing LPI with Normal Invoice Items ==
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

== Recurring LPI Invoice Generation ==

The Recurring LPI Invoice feature allows users to automatically generate Late Payment Interest (LPI) invoices on a regular basis without having to create each invoice individually. This can save a significant amount of time, particularly for MCSTs, Management Corporations and property management companies that manage a large number of property units and need to apply late payment interest to overdue payments.

Once the recurring LPI setup has been configured, the system can generate the applicable LPI invoices based on the selected date. This helps to simplify the LPI billing process and reduces the amount of manual work required.

=== Preparation ===

Before generating recurring LPI invoices, the recurring LPI setup must first be configured.

# Navigate to '''Sales > Maintenance > Recurrent LPI'''.
# Set up the recurring LPI by filling in the required information. This defines the rules and parameters that the system will use when generating the LPI invoices. For MCST or property managements, instead of selecting a particular customer, users can select the Sales Group. Sales Groups are those customers that fall under a certain group. For example, 3 bed rooms, 2 bed rooms. Or, 100 share-values, 130 share-values. Once the group is selected, all customers fall under that group will be billed accordingly when the recurring LPI invoice is triggered.
# Review the information entered and click '''Save'''.

Once the recurring LPI setup has been saved, the system is ready to generate the LPI invoices.

=== Create Recurring LPI Invoices ===

To generate the recurring LPI invoices:

# Navigate to '''Sales > Transactions > Create and Print LPI Recurrent Invoices'''.
# Select the required '''date'''. This is an important step because the system will calculate and generate the LPI based on the selected date. The selected date determines which outstanding amounts are subject to LPI according to the recurring LPI settings.
# Click the '''Create LPI Invoice''' icon on the right to generate the applicable LPI invoices.
# The system will generate the LPI invoices based on the recurring LPI configuration and the selected date.
# Once the invoices have been generated, users can either '''print the invoices''' for distribution or '''email the invoices directly to the customers'''.

The recurring LPI process eliminates the need to create LPI invoices individually and is particularly useful for property management operations where LPI invoices need to be generated regularly for multiple property units.

== Recommended Practice ==
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

Error codes explain dolution

2026-09-07T06:00:14Z

Khkoh: /* The entered transaction does not exist or cannot be voided. */

__FORCETOC__

== This document cannot be processed because there is insufficient quantity for items marked. ==
[[#err message 1|Tag:#err message 1]]

This error message occur when a delivery or direct invoice is processed. If user does not set '''Negative Inventory Allowed?''' in System setup, System and General GL, then when there is insufficient inventory for the items at the time of delivery or direct invoice tranaction, this message will appear. '''Note:''' The delivery or direct invoice date play an important part of the control. For example, today is 1 Mar 2023. If the stock of the item is received on 10 Feb 2023, and the delivery or direct inovice date is before the stock take in date (i.e. before 10 Feb), the same warning message will appear. Therefore, user must determine the date of the document to be used to ensure that the stock is sufficient before processing the delivery or direct invoice.

[[#Top|Go to Top]]

----

== The customer could not be added Tutorial, error code : 1062 error message : Duplicate entry for key ... ==
[[#err message 2|Tag:#err message 2]]

This error occur when user enter a short name of customer or supplier and when the short name already appeared in the customer or supplier records.

'''Solutions:''' Change the short name and user will be able to capture the customer or supplier records.

[[#Top|Go to Top]]

----

== TCPDF error: Unable to find xref table. ==
[[#Unable to find xref table|Tag:#Unable to find xref table]]

The TCPDF error "Unable to find xref table" means that the TCPDF library is unable to find the cross-reference table in the PDF file you are trying to process. The cross-reference table is a table that maps all of the objects in a PDF file to their respective locations in the file. Without the cross-reference table, TCPDF cannot properly process the PDF file.

The PDF file should be of Acrobat Reader format v5.0 (PDF format v1.4) or lower since Highnix ERP uses the open source FPDI v1.2.1 library. The PDF can be generated using most open source PDF creater such as CutePDF, PDFCreator or doPDF.

There are a few possible reasons why you might be getting this error:

* The PDF file is corrupted.
* The PDF file is in a version that is not compatible with TCPDF.
* The PDF file is password-protected.
'''Solutions:''' Recreate the PDF using Libreoffice (export to PDF), or PDF printer such as CutePDF, PDFCreateor or doPDF.

[[#Top|Go to Top]]

----

== The entered transaction does not exist or cannot be voided. ==
This message appears when the selected transaction cannot be voided.

The most common reasons are:

# '''The transaction has downstream transactions'''The transaction has already been used to create or process one or more subsequent transactions. In this case, the downstream transactions must be voided '''first''', before the original transaction can be voided.
# '''The transaction has already been fully voided'''The transaction may have been voided previously and therefore cannot be voided again.

=== What should I do? ===

# Please check the transaction and its related transactions to determine whether any downstream transactions exist or whether the transaction has already been voided.
# If downstream transactions exist, '''void them first and then try to void the original transaction again'''.

[[#Top|Go to Top]]

Error codes explain dolution

2026-09-07T05:55:32Z

Khkoh:

Error codes explain dolution

2026-09-07T05:54:35Z

Khkoh:

__FORCETOC__

== This document cannot be processed because there is insufficient quantity for items marked. ==
[[#err message 1|Tag:#err message 1]]

This error message occur when a delivery or direct invoice is processed. If user does not set '''Negative Inventory Allowed?''' in System setup, System and General GL, then when there is insufficient inventory for the items at the time of delivery or direct invoice tranaction, this message will appear. '''Note:''' The delivery or direct invoice date play an important part of the control. For example, today is 1 Mar 2023. If the stock of the item is received on 10 Feb 2023, and the delivery or direct inovice date is before the stock take in date (i.e. before 10 Feb), the same warning message will appear. Therefore, user must determine the date of the document to be used to ensure that the stock is sufficient before processing the delivery or direct invoice.

[[#Top|Go to Top]]

----

== The customer could not be added Tutorial, error code : 1062 error message : Duplicate entry for key ... ==
[[#err message 2|Tag:#err message 2]]

This error occur when user enter a short name of customer or supplier and when the short name already appeared in the customer or supplier records.

'''Solutions:''' Change the short name and user will be able to capture the customer or supplier records.

[[#Top|Go to Top]]

----

== TCPDF error: Unable to find xref table. ==
[[#Unable to find xref table|Tag:#Unable to find xref table]]

The TCPDF error "Unable to find xref table" means that the TCPDF library is unable to find the cross-reference table in the PDF file you are trying to process. The cross-reference table is a table that maps all of the objects in a PDF file to their respective locations in the file. Without the cross-reference table, TCPDF cannot properly process the PDF file.

The PDF file should be of Acrobat Reader format v5.0 (PDF format v1.4) or lower since Highnix ERP uses the open source FPDI v1.2.1 library. The PDF can be generated using most open source PDF creater such as CutePDF, PDFCreator or doPDF.

There are a few possible reasons why you might be getting this error:

* The PDF file is corrupted.
* The PDF file is in a version that is not compatible with TCPDF.
* The PDF file is password-protected.
'''Solutions:''' Recreate the PDF using Libreoffice (export to PDF), or PDF printer such as CutePDF, PDFCreateor or doPDF.

[[#Top|Go to Top]]

----

== The entered transaction does not exist or cannot be voided. ==

HelpWiki Highnix:General disclaimer

2026-09-07T02:30:52Z

Khkoh:

__FORCETOC__

= Disclaimer =

The information provided on '''Highnix Online Help''' is intended to assist users in understanding and using Highnix software, including its features, functions, configuration, and related procedures.

While we make reasonable efforts to ensure that the information provided is accurate, complete, and up to date, '''Highnix does not warrant or guarantee that all information is error-free, complete, or current at all times'''. Software features, functionality, procedures, screenshots, and system requirements may change from time to time as a result of software updates, enhancements, changes in technology, or changes in applicable requirements.

== Use of Information ==

The information provided in this Help site should be used as a general reference and guide. Users are responsible for ensuring that any instructions or procedures are appropriate for their particular system configuration and business requirements.

Highnix shall not be responsible for any loss, damage, interruption, or other consequences arising from the use of, or reliance upon, information provided on this Help site, to the extent permitted by applicable law.

== Accounting, Tax and Regulatory Information ==

Where this Help site contains information relating to '''accounting, taxation, GST, InvoiceNow, e-invoicing, or other regulatory requirements''', such information is provided for general guidance only and should not be regarded as professional accounting, tax, legal, or regulatory advice.

Users should verify the applicable requirements with the relevant government authority, regulatory body, or their own qualified professional adviser before making decisions or submitting information based on such guidance.

== Third-Party Information and Links ==

This Help site may contain references or links to third-party websites, services, software, or documentation. Such references are provided for convenience only.

Highnix does not control and is not responsible for the content, accuracy, availability, security, or privacy practices of third-party websites or services. The inclusion of any third-party reference or link does not necessarily constitute an endorsement or recommendation by Highnix.

== Software and System Changes ==

Highnix software is continually being improved and updated. As a result, the appearance, functionality, menus, procedures, and behaviour described in this Help site may differ from the version currently used by a customer.

Where there is a difference between information published on this Help site and the actual behaviour of the software, the '''latest applicable software version, system configuration, or official communication from Highnix shall take precedence'''.

== No Guarantee of Availability ==

Although reasonable efforts are made to maintain the availability of Highnix Online Help, Highnix does not guarantee that the Help site or any particular article will always be available, uninterrupted, or free from errors.

Highnix reserves the right to modify, update, replace, or remove any content on this Help site at any time without prior notice.

== Acceptance ==

By using Highnix Online Help, you acknowledge and agree that the information provided is intended as a general reference and that you are responsible for determining its suitability for your particular circumstances.

If you require assistance with a specific issue or are uncertain about the appropriate procedure, please contact '''Highnix Support''' for further assistance.

'''© Highnix. All rights reserved.'''
```

HelpWiki Highnix:General disclaimer

2026-09-07T02:30:34Z

Khkoh:

__FORCETOC__

```text
= Disclaimer =

The information provided on '''Highnix Online Help''' is intended to assist users in understanding and using Highnix software, including its features, functions, configuration, and related procedures.

While we make reasonable efforts to ensure that the information provided is accurate, complete, and up to date, '''Highnix does not warrant or guarantee that all information is error-free, complete, or current at all times'''. Software features, functionality, procedures, screenshots, and system requirements may change from time to time as a result of software updates, enhancements, changes in technology, or changes in applicable requirements.

== Use of Information ==

The information provided in this Help site should be used as a general reference and guide. Users are responsible for ensuring that any instructions or procedures are appropriate for their particular system configuration and business requirements.

Highnix shall not be responsible for any loss, damage, interruption, or other consequences arising from the use of, or reliance upon, information provided on this Help site, to the extent permitted by applicable law.

== Accounting, Tax and Regulatory Information ==

Where this Help site contains information relating to '''accounting, taxation, GST, InvoiceNow, e-invoicing, or other regulatory requirements''', such information is provided for general guidance only and should not be regarded as professional accounting, tax, legal, or regulatory advice.

Users should verify the applicable requirements with the relevant government authority, regulatory body, or their own qualified professional adviser before making decisions or submitting information based on such guidance.

== Third-Party Information and Links ==

This Help site may contain references or links to third-party websites, services, software, or documentation. Such references are provided for convenience only.

Highnix does not control and is not responsible for the content, accuracy, availability, security, or privacy practices of third-party websites or services. The inclusion of any third-party reference or link does not necessarily constitute an endorsement or recommendation by Highnix.

== Software and System Changes ==

Highnix software is continually being improved and updated. As a result, the appearance, functionality, menus, procedures, and behaviour described in this Help site may differ from the version currently used by a customer.

Where there is a difference between information published on this Help site and the actual behaviour of the software, the '''latest applicable software version, system configuration, or official communication from Highnix shall take precedence'''.

== No Guarantee of Availability ==

Although reasonable efforts are made to maintain the availability of Highnix Online Help, Highnix does not guarantee that the Help site or any particular article will always be available, uninterrupted, or free from errors.

Highnix reserves the right to modify, update, replace, or remove any content on this Help site at any time without prior notice.

== Acceptance ==

By using Highnix Online Help, you acknowledge and agree that the information provided is intended as a general reference and that you are responsible for determining its suitability for your particular circumstances.

If you require assistance with a specific issue or are uncertain about the appropriate procedure, please contact '''Highnix Support''' for further assistance.

'''© Highnix. All rights reserved.'''
```

HelpWiki Highnix:General disclaimer

2026-09-07T02:29:17Z

Khkoh:

__FORCETOC__

# Disclaimer

The information provided on **Highnix Online Help** is intended to assist users in understanding and using Highnix software, including its features, functions, configuration, and related procedures.

While we make reasonable efforts to ensure that the information provided is accurate, complete, and up to date, **Highnix does not warrant or guarantee that all information is error-free, complete, or current at all times**. Software features, functionality, procedures, screenshots, and system requirements may change from time to time as a result of software updates, enhancements, changes in technology, or changes in applicable requirements.

### Use of Information

The information provided in this Help site should be used as a general reference and guide. Users are responsible for ensuring that any instructions or procedures are appropriate for their particular system configuration and business requirements.

Highnix shall not be responsible for any loss, damage, interruption, or other consequences arising from the use of, or reliance upon, information provided on this Help site, to the extent permitted by applicable law.

### Accounting, Tax and Regulatory Information

Where this Help site contains information relating to **accounting, taxation, GST, InvoiceNow, e-invoicing, or other regulatory requirements**, such information is provided for general guidance only and should not be regarded as professional accounting, tax, legal, or regulatory advice.

Users should verify the applicable requirements with the relevant government authority, regulatory body, or their own qualified professional adviser before making decisions or submitting information based on such guidance.

### Third-Party Information and Links

This Help site may contain references or links to third-party websites, services, software, or documentation. Such references are provided for convenience only.

Highnix does not control and is not responsible for the content, accuracy, availability, security, or privacy practices of third-party websites or services. The inclusion of any third-party reference or link does not necessarily constitute an endorsement or recommendation by Highnix.

### Software and System Changes

Highnix software is continually being improved and updated. As a result, the appearance, functionality, menus, procedures, and behaviour described in this Help site may differ from the version currently used by a customer.

Where there is a difference between information published on this Help site and the actual behaviour of the software, the **latest applicable software version, system configuration, or official communication from Highnix shall take precedence**.

### No Guarantee of Availability

Although reasonable efforts are made to maintain the availability of Highnix Online Help, Highnix does not guarantee that the Help site or any particular article will always be available, uninterrupted, or free from errors.

Highnix reserves the right to modify, update, replace, or remove any content on this Help site at any time without prior notice.

### Acceptance

By using Highnix Online Help, you acknowledge and agree that the information provided is intended as a general reference and that you are responsible for determining its suitability for your particular circumstances.

If you require assistance with a specific issue or are uncertain about the appropriate procedure, please contact **Highnix Support** for further assistance.

**© Highnix. All rights reserved.**

HelpWiki Highnix:General disclaimer

2026-09-07T02:29:05Z

Khkoh: Created page with "__FORCETOC__"

__FORCETOC__

MediaWiki:Common.css

2026-09-07T02:23:23Z

Khkoh:

/* CSS placed here will be applied to all skins */
/*https://m.mediawiki.org/wiki/Manual:Remove_Tabs*/
/*remove: Discussion Tab*/
#ca-talk { display: none !important; }
/*remove history and view source*/
#ca-history { display: none !important;}
#ca-viewsource { display: none !important; }

/*Note: # is the target and it is not a comment. Romove Tools menu on the left bar.
This is a solution for hiding the tool menu for non-loging user is here: https://www.mediawiki.org/wiki/Topic:Wevi20ue9t8ugub2.
To UNHIDE the Tool menu: Add comment to the following line (using forward slash and asterisk #p-tb { display: none} and close asterisk and forward slash), and in LocalSetting.php comment this line: #require_once "$IP/extensions/HideSidebar/HideSidebar.php"; it will remove the tools for all users including login.
To HIDE the Tool Menu, Uncomment the following line and leave it like this: #p-tb { display: none}. And In LocalSetting.php, UNcomment this line: require_once "$IP/extensions/HideSidebar/HideSidebar.php"*/

/*#p-tb { display: none}*/

/*Koh: Fonts */
element { color: #5a7425; font-size: 13px; font-family: Verdana; }
body { color: #5a7425; font-size: 13px; font-family: Verdana; }

/*Koh: Header Numbering*/
/* General Reset for Headings */
body {
counter-reset: h2counter;
}

/* Top-level headers (== Header ==) */
h2 {
counter-reset: h3counter;
font-weight: bold;
font-size: 1.5em; /* 2 points larger than subheading1 */
margin-left: 0; /* No indentation for top-level headers */
font-family: Helvetica, Arial, sans-serif !important; /* Use Helvetica, fallback to Arial or sans-serif */
}

h2 .mw-headline::before {
counter-increment: h2counter;
content: counter(h2counter) ". ";
}

/* Subheading1 (=== Subheader ===) */
h3 {
counter-reset: h4counter;
font-size: 1.3em; /* Base size for subheading1 */
margin-left: 20px; /* Indent subheading1 */
}

h3 .mw-headline::before {
counter-increment: h3counter;
content: counter(h2counter) "." counter(h3counter) ". ";
}

/* Subheading2 (==== Subheader ===) */
h4 {
font-size: 1.2em; /* Slightly smaller than subheading1 */
margin-left: 40px; /* Further indented */
}

h4 .mw-headline::before {
counter-increment: h4counter;
content: counter(h2counter) "." counter(h3counter) "." counter(h4counter) ". ";
}

/* Ensure paragraphs align dynamically with the header level */
h2 + p {
margin-left: 0; /* Align with top-level headers */
}

h3 + p {
margin-left: 20px; /* Align paragraphs with Subheading1 */
}

h4 + p {
margin-left: 40px; /* Align paragraphs with Subheading2 */
}

/* Lists under headers and paragraphs */
h3 + p + ul, h3 + ul, h4 + p + ul, h4 + ul,
h3 + p + ol, h3 + ol, h4 + p + ol, h4 + ol {
margin-left: inherit; /* Align lists with respective headers */
padding-left: 20px;
}

/* Sublist alignment for ordered and unordered lists */
h3 + ul > li, h4 + ul > li, h3 + ol > li, h4 + ol > li {
margin-left: 20px; /* Ensure first-level list alignment */
text-indent: 0; /* Prevent overlap */
}

h3 + ul > li > ul, h4 + ul > li > ul, h3 + ol > li > ol, h4 + ol > li > ol {
margin-left: 20px; /* Proper indentation for nested lists */
padding-left: 20px;
}

/* Dynamic alignment for subsequent paragraphs and lists under headers */
h2 ~ p, h3 ~ p, h4 ~ p {
margin-left: inherit; /* Automatically inherit alignment */
text-indent: 0;
}

h2 ~ ul, h3 ~ ul, h4 ~ ul, h2 ~ ol, h3 ~ ol, h4 ~ ol {
margin-left: inherit; /* Automatically align lists under headers */
padding-left: 20px;
}

a:link,
a:visited,
a:active {
text-decoration: underline !important;
color: #3399ff !important; /* Light blue */
}

a.external,
a.mw-redirect {
text-decoration: underline !important;
color: #3399ff !important;
}

/* Koh: R0907: Hide "This page was last edited..." */
#footer-info-lastmod {
display: none;
}

Invoice Data Submission through APs

2026-09-06T04:50:38Z

Khkoh: /* Invoice Preparation */

__FORCETOC__

==How to Submit Invoice Data Through APs==

=== Invoice Preparation ===
# Invoices (sales or purchase) are prepared in the Highnix system using a user-friendly interface.
# Once an invoice is prepared, the user will be directed to a processing page (See Fig 1), where multiple options are available for handling the invoice.
# NOTE: For supplier invoice and supplier credit note and the supplier is a InvoiceNow participant, user must copy the supplier invoice reference and UUID as shown in the modal (pop-up small window) and paste to the supplier reference and supplier reference UUID fields respectively. If user is not a InvoiceNow participant, then enter "NA" (must be in capital letters) at the UUID reference field.

=== Submission Process ===
# Click on the desired option to proceed with submission.
# In the backend, Highnix will perform a series of automated processes:
## Extracting the invoice data.
## Packaging the data into a system-readable format.
## Initiating a secure API call to Banqup using a sophisticated authentication process.
# Based on the selected submission option (Customer only, both Customer and C5, or C5 only), the system will send the appropriate API instruction to Banqup for processing accordingly.
[[File:C5 invoice options.png|thumb|800x800px|Fig 1.|none]]

Go to next topic: [[Reporting & Reconciliation#Analytic Report]]

Invoice Data Submission through APs

2026-09-06T04:47:53Z

Khkoh: /* Invoice Preparation */

__FORCETOC__

==How to Submit Invoice Data Through APs==

=== Invoice Preparation ===
# Invoices (sales or purchase) are prepared in the Highnix system using a user-friendly interface.
# Once an invoice is prepared, the user will be directed to a processing page (See Fig 1), where multiple options are available for handling the invoice.
# NOTE: For supplier invoice and supplier credit note, user must copy the supplier invoice reference and UUID as shown in the modal (pop-up small window) and paste to the supplier reference and supplier reference UUID fields respectively.

=== Submission Process ===
# Click on the desired option to proceed with submission.
# In the backend, Highnix will perform a series of automated processes:
## Extracting the invoice data.
## Packaging the data into a system-readable format.
## Initiating a secure API call to Banqup using a sophisticated authentication process.
# Based on the selected submission option (Customer only, both Customer and C5, or C5 only), the system will send the appropriate API instruction to Banqup for processing accordingly.
[[File:C5 invoice options.png|thumb|800x800px|Fig 1.|none]]

Go to next topic: [[Reporting & Reconciliation#Analytic Report]]

GL Closing

2026-09-04T07:08:42Z

Khkoh: /* GL Closing */

__FORCETOC__
==GL Closing==
The '''GL Closing''' function is used to close the General Ledger up to a specified date. Once the GL is closed, transactions dated on or before the closing date are treated as '''Closed''' and can no longer be edited or deleted through the normal system interface.

GL closing is an important accounting control and should be performed carefully. Users should ensure that all necessary accounting entries, adjustments and reconciliations for the period have been completed before closing the GL.
===Accessing GL Closing===

# To access the GL Closing function:
## Navigate to '''Finance Mgt > Maintenance > GL Closing'''.
## The GL Closing screen will be displayed.

===Closing the GL===

# Select the desired '''Closing Date''' using the calendar.
# Review the selected date carefully to ensure that it is the intended accounting closing date.
# Click the '''Close GL''' button.
# The system will close the GL up to the selected date.
# Once the GL has been closed, transactions within the closed period will be marked as '''Closed''' and cannot be edited or deleted through the normal transaction screens.
# Important: Re-opening the GL

=== Re-Open the GL ===

# Highnix allows users to re-open the GL if further accounting entries need to be posted for a previously closed period. This can be done by removing or changing the closing date and using the '''Close GL''' function again.
# However, users must understand that '''re-opening the GL does not re-open transactions that were previously closed'''.
# For example, if an invoice or journal entry was already marked as '''Closed''' when the GL was closed, re-opening the GL will allow new transactions to be entered, but the previously closed transaction will remain closed. It will not automatically become available for editing or deletion.
# Therefore, '''GL closing should be treated as a serious accounting control and should not be used casually or repeatedly to facilitate changes to previously closed transactions.'''
===Accounting Best Practice===

# It is not recommended to manually intervene in the database to change the status of closed transactions simply to make them editable.
# Directly modifying accounting data in the database can affect the integrity and audit trail of the accounting records. Any correction to a closed transaction should, wherever possible, be handled using the appropriate accounting procedure, such as entering an adjustment, reversal or void transaction.
# If a situation arises where a previously closed transaction genuinely needs to be modified and there is no appropriate standard system procedure to do so, '''Highnix Support can assist with the database intervention as a chargeable service'''. Such changes should only be carried out after the customer has confirmed and accepted the required adjustment.
===Important Reminder===

# '''Before closing the GL, always ensure that:'''
## All transactions for the period have been entered.
## Required adjustments and corrections have been completed.
## The relevant accounts have been reviewed and reconciled.
## The closing date is correct.
## The GL does not need to remain open for any further changes to existing transactions.
# '''Remember:'''
## '''Re-opening the GL allows new entries to be posted. It does not re-open previously closed transactions for editing or deletion.'''

GL Closing

2026-09-04T07:05:18Z

Khkoh:

__FORCETOC__
==GL Closing==
The '''GL Closing''' function is used to close the General Ledger up to a specified date. Once the GL is closed, transactions dated on or before the closing date are treated as '''Closed''' and can no longer be edited or deleted through the normal system interface.

GL closing is an important accounting control and should be performed carefully. Users should ensure that all necessary accounting entries, adjustments and reconciliations for the period have been completed before closing the GL.
===Accessing GL Closing===
To access the GL Closing function:

Navigate to '''Finance Mgt > Maintenance > GL Closing'''.

The GL Closing screen will be displayed.
===Closing the GL===
Select the desired '''Closing Date''' using the calendar.

Review the selected date carefully to ensure that it is the intended accounting closing date.

Click the '''Close GL''' button.

The system will close the GL up to the selected date.

Once the GL has been closed, transactions within the closed period will be marked as '''Closed''' and cannot be edited or deleted through the normal transaction screens.
===Important: Re-opening the GL===
Highnix allows users to re-open the GL if further accounting entries need to be posted for a previously closed period. This can be done by removing or changing the closing date and using the '''Close GL''' function again.

However, users must understand that '''re-opening the GL does not re-open transactions that were previously closed'''.

For example, if an invoice or journal entry was already marked as '''Closed''' when the GL was closed, re-opening the GL will allow new transactions to be entered, but the previously closed transaction will remain closed. It will not automatically become available for editing or deletion.

Therefore, '''GL closing should be treated as a serious accounting control and should not be used casually or repeatedly to facilitate changes to previously closed transactions.'''
===Accounting Best Practice===
It is not recommended to manually intervene in the database to change the status of closed transactions simply to make them editable.

Directly modifying accounting data in the database can affect the integrity and audit trail of the accounting records. Any correction to a closed transaction should, wherever possible, be handled using the appropriate accounting procedure, such as entering an adjustment, reversal or void transaction.

If a situation arises where a previously closed transaction genuinely needs to be modified and there is no appropriate standard system procedure to do so, '''Highnix Support can assist with the database intervention as a chargeable service'''. Such changes should only be carried out after the customer has confirmed and accepted the required adjustment.
===Important Reminder===
'''Before closing the GL, always ensure that:'''

All transactions for the period have been entered.

Required adjustments and corrections have been completed.

The relevant accounts have been reviewed and reconciled.

The closing date is correct.

The GL does not need to remain open for any further changes to existing transactions.

'''Remember:'''

'''Re-opening the GL allows new entries to be posted. It does not re-open previously closed transactions for editing or deletion.'''

GL Closing

2026-09-04T06:56:00Z

Khkoh: Created page with "__FORCETOC__"

__FORCETOC__

Home (Click on Highnix Logo)

2026-09-04T06:55:31Z

Khkoh: /* Online Manual Table of Content: */

== Welcome to Highnix Online Support And Documentation ==

=== Contact Support: ===
:We will get back to you within 3 working days or earlier.
:* WhatsApp: +65-8460 2283 (<nowiki>https://wa.me/6584602283</nowiki>)
:* Voice: +65-8912 8747 / +65-6214 1157
:* [https://www.highnix.com/contact-us/ Online Contact form: https://www.highnix.com/contact-us/]

=== Online Manual Table of Content: ===
'''At any page, click the Highnix logo or Home on the left to go back to the Home Page.'''

'''Subject Category:''' This is organized according to the function tabs menu. It includes useful information and tips.

__FORCETOC__
{| class="wikitable sortable mw-collapsible"

|+
!
!Subject
!Subject Category
!Topics
|-
|■
|[[About this Help]]
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|-
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|''Info:''
|[[How to use help|How to Use Help?]]
|-
|■
|[[General]]
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|-
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|''Info:''
|[[Read Me First|'''Read Me First (Must Read)''']]
|-
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|[[Why Highnix ERP|Why Highnix ERP?]]
|-
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|[[Read Me First#do and do not|DO and DON'T]]
|-
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|[[General#General Form|Form]]
|-
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|''Implementation''
|[[System Implementation and Deployment Preparation]]
|-
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|[[Data Migration and Initial Setup]]
|-
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|[[Training]]
|-
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|Application Programming Interface (API) (Coming)
|-
|■
|[[Inventory and Product Mgt]]
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|-
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|''Info:''
|[[Handling the Landing Cost of Products Purchased]]
|-
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|Batch/Expiry Date Selection
|-
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|
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|[[Report: Stock Check Sheets]]
|-
|
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|''Transactions:''
|[[Inventory Location Transfers]]
|-
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|''Maintenance:''
|[[Add and Edit Items]]
|-
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|[[Kitting]]
|-
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|''Pricing:''
|[[Selling Price|Selling Price (Price Book)]]
|-
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|[[Buying Price]]
|-
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|[[Standard Cost]]
|-
|■
|[[Sales Management]]
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|''Info:''
|[[Generic Sales Flow]]
|-
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|[[Useful Tips - Sales]]
|-
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|''Transactions:''
|[[Quotation]]
|-
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|[[Sales Order]]
|-
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|[[Sales Delivery]]
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|[[Sales Invoice]]
|-
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|[[Late Payment Interest|Late Payment Interest Module (LPI)]]
|-
|■
|Purchase Management
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|''info:''
|[[Purchase Credit Note]]
|-
|■
|[[Finance Management]]
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|''info:''
|[[Finance Management|About Finance Management]]
|-
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|[[Foreign Currency Revaulation]]
|-
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|[[Differences of Various Payment Types]]
|-
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|[[Journal Inquiry]]
|-
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|''Transactions:''
|[[General Receipt]]
|-
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|[[Receive Customer Payment]]
|-
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|[[Allocate Customer Payment or Credit Note]]
|-
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|[[Finance Management#Fixed Asset Management|Fixed Asset Management]]
|-
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|[[Add and Edit Currencies|Add and Edit Currency]]
|-
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|[[Update Exchange Rates Table|Update Exchange Rates]]
|-
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|''Maintenance:''
|[[Add and Edit Bank Accounts]]
|-
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|[[GL Closing]]
|-
|■
|InvoiceNow
|''General''
|[[InvoiceNow Setup]]
|-
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|[[Activation of GST InvoiceNow Submission for GST- Registered Businesses]]
|-
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|[[Extraction and Packaging of Invoice Data]]
|-
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|''Sending Invoices''
|[[Invoice Data Submission through APs]]
|-
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|[[Reporting & Reconciliation]]
|-
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|''Adding Customer''
|[[Add or Edit A Customer]]
|-
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|[[Sending InvoiceNow To Customers]]
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|[[Receiving InvoiceNow from Suppliers]]
|-
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|InvoiceNow-Advance Ordering
|[[InvoiceNow - Advance Ordering]]
|-
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|[[Receiving of Customer Purchase Orders|Receiving and Processing of Customer Purchase Orders (or Sales Orders)]]
|-
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|[[Process the Sales Order|Process the Sales Order (Accept, Reject, Accept with or without Changes)]]
|-
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|[[Sending of Customer Purchase Order Status]]
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|[[Important Things to Take Note When Sending Invoices to Government]]
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|[[Send Invoices to Government|Sending Invoices to Government]]
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|[[Receiving Invoice Response from Customer]]
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|Dimension Management
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|Setup
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|[[System Setup]]
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|System/GL Defaults
|[[System Setup#Default Account Codes and System General GL Setup|System and General GL]]
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|Forms and Docs Reference Number
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|GST
|[[GST|GST Setup]]
|-
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|[[Add GST Tax Type]]
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|[[Gross Margin Scheme|Gross Margin Scheme (GMS)]]
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|[[Sales of Vouchers]]
|-
|###
|##################
|##############
|###################################
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|API
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|[[HR Processes with QuickHR|HRMS]]
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|[[How to create water mark]]?
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|[[Cessation Of Services]]
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|[[Write-Off of Uncollectible Receivables or Bad Debts]]
|-
|■
|[[Error Codes]]
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|[[Error codes explain dolution|Error Codes Explanation and Solution]]
|}

----

Late Payment Interest

2026-08-30T03:53:41Z

Khkoh: /* Changing the LPI Item */

__FORCETOC__

== Late Payment Interest (LPI) Module User Guide Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

== Understanding Late Payment Interest ==

=== What is Late Payment Interest (LPI)? ===
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

==== Statutory or By-Law Provisions ====
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

==== Contractual Agreements ====
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==

Compounded interest occurs when previously charged interest becomes part of the amount used for subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be applied when expressly agreed upon by the contractual parties and permitted under the applicable laws or regulations.

The Highnix LPI Module supports both non-compounded and compounded interest calculations.
# '''Note:''' When '''LPI on LPI''' is enabled, '''new''' Late Payment Interest (LPI) invoices generated thereafter are flagged as eligible for future LPI calculations. If such an LPI invoice remains unpaid after the applicable grace period, its outstanding amount will be included in subsequent LPI calculations, resulting in compounded interest. LPI invoices generated before '''LPI on LPI''' was enabled remain non-compounded and are not retrospectively included in future LPI calculations.

== Configuring Late Payment Interest Terms ==
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days. That means, the interest will start from the next day after the grace period (30 days).

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied. If there is any outstanding payment (even with after partial payment), after this additional grace period, the interest will start 1 day '''after the Grace Period''', not after the Additional Grace Period.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

== Defining the Late Payment Interest Item ==
Late Payment Interest is billed using a dedicated service item.

=== Default Item ===
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

=== Changing the LPI Item ===
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → System and General GL'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

== Configuring Compounded Interest for a Customer ==
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

== Mixing LPI with Normal Invoice Items ==
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

== Recurring LPI Invoice Generation ==

The Recurring LPI Invoice feature allows users to automatically generate Late Payment Interest (LPI) invoices on a regular basis without having to create each invoice individually. This can save a significant amount of time, particularly for MCSTs, Management Corporations and property management companies that manage a large number of property units and need to apply late payment interest to overdue payments.

Once the recurring LPI setup has been configured, the system can generate the applicable LPI invoices based on the selected date. This helps to simplify the LPI billing process and reduces the amount of manual work required.

=== Preparation ===

Before generating recurring LPI invoices, the recurring LPI setup must first be configured.

# Navigate to '''Sales > Maintenance > Recurrent LPI'''.
# Set up the recurring LPI by filling in the required information. This defines the rules and parameters that the system will use when generating the LPI invoices.
# Review the information entered and click '''Save'''.

Once the recurring LPI setup has been saved, the system is ready to generate the LPI invoices.

=== Create Recurring LPI Invoices ===

To generate the recurring LPI invoices:

# Navigate to '''Sales > Transactions > Create and Print LPI Recurrent Invoices'''.
# Select the required '''date'''. This is an important step because the system will calculate and generate the LPI based on the selected date. The selected date determines which outstanding amounts are subject to LPI according to the recurring LPI settings.
# Click the '''Create LPI Invoice''' icon on the right to generate the applicable LPI invoices.
# The system will generate the LPI invoices based on the recurring LPI configuration and the selected date.
# Once the invoices have been generated, users can either '''print the invoices''' for distribution or '''email the invoices directly to the customers'''.

The recurring LPI process eliminates the need to create LPI invoices individually and is particularly useful for property management operations where LPI invoices need to be generated regularly for multiple property units.

== Recommended Practice ==
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

Home (Click on Highnix Logo)

2026-08-30T03:23:14Z

Khkoh: /* Online Manual Table of Content: */

== Welcome to Highnix Online Support And Documentation ==

=== Contact Support: ===
:We will get back to you within 3 working days or earlier.
:* WhatsApp: +65-8460 2283 (<nowiki>https://wa.me/6584602283</nowiki>)
:* Voice: +65-8912 8747 / +65-6214 1157
:* [https://www.highnix.com/contact-us/ Online Contact form: https://www.highnix.com/contact-us/]

=== Online Manual Table of Content: ===
'''At any page, click the Highnix logo or Home on the left to go back to the Home Page.'''

'''Subject Category:''' This is organized according to the function tabs menu. It includes useful information and tips.

__FORCETOC__
{| class="wikitable sortable mw-collapsible"

|+
!
!Subject
!Subject Category
!Topics
|-
|■
|[[About this Help]]
|
|
|-
|
|
|''Info:''
|[[How to use help|How to Use Help?]]
|-
|■
|[[General]]
|
|
|-
|
|
|''Info:''
|[[Read Me First|'''Read Me First (Must Read)''']]
|-
|
|
|
|[[Why Highnix ERP|Why Highnix ERP?]]
|-
|
|
|
|[[Read Me First#do and do not|DO and DON'T]]
|-
|
|
|
|[[General#General Form|Form]]
|-
|
|
|''Implementation''
|[[System Implementation and Deployment Preparation]]
|-
|
|
|
|[[Data Migration and Initial Setup]]
|-
|
|
|
|[[Training]]
|-
|
|
|
|Application Programming Interface (API) (Coming)
|-
|■
|[[Inventory and Product Mgt]]
|
|
|-
|
|
|''Info:''
|[[Handling the Landing Cost of Products Purchased]]
|-
|
|
|
|Batch/Expiry Date Selection
|-
|
|
|
|[[Report: Stock Check Sheets]]
|-
|
|
|''Transactions:''
|[[Inventory Location Transfers]]
|-
|
|
|''Maintenance:''
|[[Add and Edit Items]]
|-
|
|
|
|[[Kitting]]
|-
|
|
|''Pricing:''
|[[Selling Price|Selling Price (Price Book)]]
|-
|
|
|
|[[Buying Price]]
|-
|
|
|
|[[Standard Cost]]
|-
|■
|[[Sales Management]]
|
|
|-
|
|
|''Info:''
|[[Generic Sales Flow]]
|-
|
|
|
|[[Useful Tips - Sales]]
|-
|
|
|''Transactions:''
|[[Quotation]]
|-
|
|
|
|[[Sales Order]]
|-
|
|
|
|[[Sales Delivery]]
|-
|
|
|
|[[Sales Invoice]]
|-
|
|
|
|[[Late Payment Interest|Late Payment Interest Module (LPI)]]
|-
|■
|Purchase Management
|
|
|-
|
|
|''info:''
|[[Purchase Credit Note]]
|-
|■
|[[Finance Management]]
|
|
|-
|
|
|''info:''
|[[Finance Management|About Finance Management]]
|-
|
|
|
|[[Foreign Currency Revaulation]]
|-
|
|
|
|[[Differences of Various Payment Types]]
|-
|
|
|
|[[Journal Inquiry]]
|-
|
|
|''Transactions:''
|[[General Receipt]]
|-
|
|
|
|[[Receive Customer Payment]]
|-
|
|
|
|[[Allocate Customer Payment or Credit Note]]
|-
|
|
|
|[[Finance Management#Fixed Asset Management|Fixed Asset Management]]
|-
|
|
|
|[[Add and Edit Currencies|Add and Edit Currency]]
|-
|
|
|
|[[Update Exchange Rates Table|Update Exchange Rates]]
|-
|
|
|''Maintenance:''
|[[Add and Edit Bank Accounts]]
|-
|■
|InvoiceNow
|''General''
|[[InvoiceNow Setup]]
|-
|
|
|
|[[Activation of GST InvoiceNow Submission for GST- Registered Businesses]]
|-
|
|
|
|[[Extraction and Packaging of Invoice Data]]
|-
|
|
|''Sending Invoices''
|[[Invoice Data Submission through APs]]
|-
|
|
|
|[[Reporting & Reconciliation]]
|-
|
|
|''Adding Customer''
|[[Add or Edit A Customer]]
|-
|
|
|
|[[Sending InvoiceNow To Customers]]
|-
|
|
|
|[[Receiving InvoiceNow from Suppliers]]
|-
|
|
|InvoiceNow-Advance Ordering
|[[InvoiceNow - Advance Ordering]]
|-
|
|
|
|[[Receiving of Customer Purchase Orders|Receiving and Processing of Customer Purchase Orders (or Sales Orders)]]
|-
|
|
|
|[[Process the Sales Order|Process the Sales Order (Accept, Reject, Accept with or without Changes)]]
|-
|
|
|
|[[Sending of Customer Purchase Order Status]]
|-
|
|
|
|[[Important Things to Take Note When Sending Invoices to Government]]
|-
|
|
|
|[[Send Invoices to Government|Sending Invoices to Government]]
|-
|
|
|
|[[Receiving Invoice Response from Customer]]
|-
|■
|Dimension Management
|
|
|-
|
|Extension Module
|
|
|-
|■
|Setup
|
|
|-
|
|
|
|[[System Setup]]
|-
|
|
|System/GL Defaults
|[[System Setup#Default Account Codes and System General GL Setup|System and General GL]]
|-
|
|
|
|Forms and Docs Reference Number
|-
|
|
|GST
|[[GST|GST Setup]]
|-
|
|
|
|[[Add GST Tax Type]]
|-
|
|
|
|[[Gross Margin Scheme|Gross Margin Scheme (GMS)]]
|-
|
|
|
|[[Sales of Vouchers]]
|-
|###
|##################
|##############
|###################################
|-
|
|API
|
|
|-
|■
|[[HR Processes with QuickHR|HRMS]]
|
|[[QuickHR Integration Settings]]
|-
|■
|FAQ / How To?
|
|
|-
|
|
|Sales
|[[How to create water mark]]?
|-
|
|
|
|[[Contra of Accounts (A customer is also a supplier)]]
|-
|
|
|
|[[Handle Leasing of Products or Equipment]]
|-
|
|
|
|[[Handle Deposits]]
|-
|
|
|Termination
|[[Cessation Of Services]]
|-
|
|
|Finance
|[[Write-Off of Uncollectible Receivables or Bad Debts]]
|-
|■
|[[Error Codes]]
|
|[[Error codes explain dolution|Error Codes Explanation and Solution]]
|}

----

Late Payment Interest

2026-08-29T13:41:18Z

Khkoh: /* Grace Period */

__FORCETOC__

== Late Payment Interest (LPI) Module User Guide Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

== Understanding Late Payment Interest ==

=== What is Late Payment Interest (LPI)? ===
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

==== Statutory or By-Law Provisions ====
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

==== Contractual Agreements ====
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==

Compounded interest occurs when previously charged interest becomes part of the amount used for subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be applied when expressly agreed upon by the contractual parties and permitted under the applicable laws or regulations.

The Highnix LPI Module supports both non-compounded and compounded interest calculations.
# '''Note:''' When '''LPI on LPI''' is enabled, '''new''' Late Payment Interest (LPI) invoices generated thereafter are flagged as eligible for future LPI calculations. If such an LPI invoice remains unpaid after the applicable grace period, its outstanding amount will be included in subsequent LPI calculations, resulting in compounded interest. LPI invoices generated before '''LPI on LPI''' was enabled remain non-compounded and are not retrospectively included in future LPI calculations.

== Configuring Late Payment Interest Terms ==
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days. That means, the interest will start from the next day after the grace period (30 days).

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied. If there is any outstanding payment (even with after partial payment), after this additional grace period, the interest will start 1 day '''after the Grace Period''', not after the Additional Grace Period.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

== Defining the Late Payment Interest Item ==
Late Payment Interest is billed using a dedicated service item.

=== Default Item ===
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

=== Changing the LPI Item ===
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → Forms and Docs Reference Number'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

== Configuring Compounded Interest for a Customer ==
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

== Mixing LPI with Normal Invoice Items ==
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

== Recurring LPI Invoice Generation ==

The Recurring LPI Invoice feature allows users to automatically generate Late Payment Interest (LPI) invoices on a regular basis without having to create each invoice individually. This can save a significant amount of time, particularly for MCSTs, Management Corporations and property management companies that manage a large number of property units and need to apply late payment interest to overdue payments.

Once the recurring LPI setup has been configured, the system can generate the applicable LPI invoices based on the selected date. This helps to simplify the LPI billing process and reduces the amount of manual work required.

=== Preparation ===

Before generating recurring LPI invoices, the recurring LPI setup must first be configured.

# Navigate to '''Sales > Maintenance > Recurrent LPI'''.
# Set up the recurring LPI by filling in the required information. This defines the rules and parameters that the system will use when generating the LPI invoices.
# Review the information entered and click '''Save'''.

Once the recurring LPI setup has been saved, the system is ready to generate the LPI invoices.

=== Create Recurring LPI Invoices ===

To generate the recurring LPI invoices:

# Navigate to '''Sales > Transactions > Create and Print LPI Recurrent Invoices'''.
# Select the required '''date'''. This is an important step because the system will calculate and generate the LPI based on the selected date. The selected date determines which outstanding amounts are subject to LPI according to the recurring LPI settings.
# Click the '''Create LPI Invoice''' icon on the right to generate the applicable LPI invoices.
# The system will generate the LPI invoices based on the recurring LPI configuration and the selected date.
# Once the invoices have been generated, users can either '''print the invoices''' for distribution or '''email the invoices directly to the customers'''.

The recurring LPI process eliminates the need to create LPI invoices individually and is particularly useful for property management operations where LPI invoices need to be generated regularly for multiple property units.

== Recommended Practice ==
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

Late Payment Interest

2026-08-28T06:14:50Z

Khkoh: /* Late Payment Interest (LPI) Module User Guide */

__FORCETOC__

== Late Payment Interest (LPI) Module User Guide Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

== Understanding Late Payment Interest ==

=== What is Late Payment Interest (LPI)? ===
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

==== Statutory or By-Law Provisions ====
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

==== Contractual Agreements ====
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==

Compounded interest occurs when previously charged interest becomes part of the amount used for subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be applied when expressly agreed upon by the contractual parties and permitted under the applicable laws or regulations.

The Highnix LPI Module supports both non-compounded and compounded interest calculations.
# '''Note:''' When '''LPI on LPI''' is enabled, '''new''' Late Payment Interest (LPI) invoices generated thereafter are flagged as eligible for future LPI calculations. If such an LPI invoice remains unpaid after the applicable grace period, its outstanding amount will be included in subsequent LPI calculations, resulting in compounded interest. LPI invoices generated before '''LPI on LPI''' was enabled remain non-compounded and are not retrospectively included in future LPI calculations.

== Configuring Late Payment Interest Terms ==
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days.

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

== Defining the Late Payment Interest Item ==
Late Payment Interest is billed using a dedicated service item.

=== Default Item ===
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

=== Changing the LPI Item ===
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → Forms and Docs Reference Number'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

== Configuring Compounded Interest for a Customer ==
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

== Mixing LPI with Normal Invoice Items ==
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

== Recurring LPI Invoice Generation ==

The Recurring LPI Invoice feature allows users to automatically generate Late Payment Interest (LPI) invoices on a regular basis without having to create each invoice individually. This can save a significant amount of time, particularly for MCSTs, Management Corporations and property management companies that manage a large number of property units and need to apply late payment interest to overdue payments.

Once the recurring LPI setup has been configured, the system can generate the applicable LPI invoices based on the selected date. This helps to simplify the LPI billing process and reduces the amount of manual work required.

=== Preparation ===

Before generating recurring LPI invoices, the recurring LPI setup must first be configured.

# Navigate to '''Sales > Maintenance > Recurrent LPI'''.
# Set up the recurring LPI by filling in the required information. This defines the rules and parameters that the system will use when generating the LPI invoices.
# Review the information entered and click '''Save'''.

Once the recurring LPI setup has been saved, the system is ready to generate the LPI invoices.

=== Create Recurring LPI Invoices ===

To generate the recurring LPI invoices:

# Navigate to '''Sales > Transactions > Create and Print LPI Recurrent Invoices'''.
# Select the required '''date'''. This is an important step because the system will calculate and generate the LPI based on the selected date. The selected date determines which outstanding amounts are subject to LPI according to the recurring LPI settings.
# Click the '''Create LPI Invoice''' icon on the right to generate the applicable LPI invoices.
# The system will generate the LPI invoices based on the recurring LPI configuration and the selected date.
# Once the invoices have been generated, users can either '''print the invoices''' for distribution or '''email the invoices directly to the customers'''.

The recurring LPI process eliminates the need to create LPI invoices individually and is particularly useful for property management operations where LPI invoices need to be generated regularly for multiple property units.

== Recommended Practice ==
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

Late Payment Interest

2026-08-28T06:13:42Z

Khkoh: /* Late Payment Interest (LPI) Module User Guide */

__FORCETOC__

== Late Payment Interest (LPI) Module User Guide ==

== Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

== Understanding Late Payment Interest ==

=== What is Late Payment Interest (LPI)? ===
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

==== Statutory or By-Law Provisions ====
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

==== Contractual Agreements ====
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==

Compounded interest occurs when previously charged interest becomes part of the amount used for subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be applied when expressly agreed upon by the contractual parties and permitted under the applicable laws or regulations.

The Highnix LPI Module supports both non-compounded and compounded interest calculations.
# '''Note:''' When '''LPI on LPI''' is enabled, '''new''' Late Payment Interest (LPI) invoices generated thereafter are flagged as eligible for future LPI calculations. If such an LPI invoice remains unpaid after the applicable grace period, its outstanding amount will be included in subsequent LPI calculations, resulting in compounded interest. LPI invoices generated before '''LPI on LPI''' was enabled remain non-compounded and are not retrospectively included in future LPI calculations.

== Configuring Late Payment Interest Terms ==
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days.

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

== Defining the Late Payment Interest Item ==
Late Payment Interest is billed using a dedicated service item.

=== Default Item ===
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

=== Changing the LPI Item ===
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → Forms and Docs Reference Number'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

== Configuring Compounded Interest for a Customer ==
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

== Mixing LPI with Normal Invoice Items ==
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

== Recurring LPI Invoice Generation ==

The Recurring LPI Invoice feature allows users to automatically generate Late Payment Interest (LPI) invoices on a regular basis without having to create each invoice individually. This can save a significant amount of time, particularly for MCSTs, Management Corporations and property management companies that manage a large number of property units and need to apply late payment interest to overdue payments.

Once the recurring LPI setup has been configured, the system can generate the applicable LPI invoices based on the selected date. This helps to simplify the LPI billing process and reduces the amount of manual work required.

=== Preparation ===

Before generating recurring LPI invoices, the recurring LPI setup must first be configured.

# Navigate to '''Sales > Maintenance > Recurrent LPI'''.
# Set up the recurring LPI by filling in the required information. This defines the rules and parameters that the system will use when generating the LPI invoices.
# Review the information entered and click '''Save'''.

Once the recurring LPI setup has been saved, the system is ready to generate the LPI invoices.

=== Create Recurring LPI Invoices ===

To generate the recurring LPI invoices:

# Navigate to '''Sales > Transactions > Create and Print LPI Recurrent Invoices'''.
# Select the required '''date'''. This is an important step because the system will calculate and generate the LPI based on the selected date. The selected date determines which outstanding amounts are subject to LPI according to the recurring LPI settings.
# Click the '''Create LPI Invoice''' icon on the right to generate the applicable LPI invoices.
# The system will generate the LPI invoices based on the recurring LPI configuration and the selected date.
# Once the invoices have been generated, users can either '''print the invoices''' for distribution or '''email the invoices directly to the customers'''.

The recurring LPI process eliminates the need to create LPI invoices individually and is particularly useful for property management operations where LPI invoices need to be generated regularly for multiple property units.

== Recommended Practice ==
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

Late Payment Interest

2026-08-28T06:12:58Z

Khkoh: /* Configuring Compounded Interest for a Customer */

__FORCETOC__

= Late Payment Interest (LPI) Module User Guide =

== Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

== Understanding Late Payment Interest ==

=== What is Late Payment Interest (LPI)? ===
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

==== Statutory or By-Law Provisions ====
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

==== Contractual Agreements ====
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==

Compounded interest occurs when previously charged interest becomes part of the amount used for subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be applied when expressly agreed upon by the contractual parties and permitted under the applicable laws or regulations.

The Highnix LPI Module supports both non-compounded and compounded interest calculations.
# '''Note:''' When '''LPI on LPI''' is enabled, '''new''' Late Payment Interest (LPI) invoices generated thereafter are flagged as eligible for future LPI calculations. If such an LPI invoice remains unpaid after the applicable grace period, its outstanding amount will be included in subsequent LPI calculations, resulting in compounded interest. LPI invoices generated before '''LPI on LPI''' was enabled remain non-compounded and are not retrospectively included in future LPI calculations.

== Configuring Late Payment Interest Terms ==
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days.

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

== Defining the Late Payment Interest Item ==
Late Payment Interest is billed using a dedicated service item.

=== Default Item ===
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

=== Changing the LPI Item ===
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → Forms and Docs Reference Number'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

== Configuring Compounded Interest for a Customer ==
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

== Mixing LPI with Normal Invoice Items ==
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

== Recurring LPI Invoice Generation ==

The Recurring LPI Invoice feature allows users to automatically generate Late Payment Interest (LPI) invoices on a regular basis without having to create each invoice individually. This can save a significant amount of time, particularly for MCSTs, Management Corporations and property management companies that manage a large number of property units and need to apply late payment interest to overdue payments.

Once the recurring LPI setup has been configured, the system can generate the applicable LPI invoices based on the selected date. This helps to simplify the LPI billing process and reduces the amount of manual work required.

=== Preparation ===

Before generating recurring LPI invoices, the recurring LPI setup must first be configured.

# Navigate to '''Sales > Maintenance > Recurrent LPI'''.
# Set up the recurring LPI by filling in the required information. This defines the rules and parameters that the system will use when generating the LPI invoices.
# Review the information entered and click '''Save'''.

Once the recurring LPI setup has been saved, the system is ready to generate the LPI invoices.

=== Create Recurring LPI Invoices ===

To generate the recurring LPI invoices:

# Navigate to '''Sales > Transactions > Create and Print LPI Recurrent Invoices'''.
# Select the required '''date'''. This is an important step because the system will calculate and generate the LPI based on the selected date. The selected date determines which outstanding amounts are subject to LPI according to the recurring LPI settings.
# Click the '''Create LPI Invoice''' icon on the right to generate the applicable LPI invoices.
# The system will generate the LPI invoices based on the recurring LPI configuration and the selected date.
# Once the invoices have been generated, users can either '''print the invoices''' for distribution or '''email the invoices directly to the customers'''.

The recurring LPI process eliminates the need to create LPI invoices individually and is particularly useful for property management operations where LPI invoices need to be generated regularly for multiple property units.

== Recommended Practice ==
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

Late Payment Interest

2026-08-28T06:10:08Z

Khkoh: /* Recurring LPI Invoice Generation */

__FORCETOC__

= Late Payment Interest (LPI) Module User Guide =

== Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

= Understanding Late Payment Interest =

== What is Late Payment Interest (LPI)? ==
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

=== Statutory or By-Law Provisions ===
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

=== Contractual Agreements ===
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==

Compounded interest occurs when previously charged interest becomes part of the amount used for subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be applied when expressly agreed upon by the contractual parties and permitted under the applicable laws or regulations.

The Highnix LPI Module supports both non-compounded and compounded interest calculations.
# '''Note:''' When '''LPI on LPI''' is enabled, '''new''' Late Payment Interest (LPI) invoices generated thereafter are flagged as eligible for future LPI calculations. If such an LPI invoice remains unpaid after the applicable grace period, its outstanding amount will be included in subsequent LPI calculations, resulting in compounded interest. LPI invoices generated before '''LPI on LPI''' was enabled remain non-compounded and are not retrospectively included in future LPI calculations.
= Configuring Late Payment Interest Terms =
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days.

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

= Defining the Late Payment Interest Item =
Late Payment Interest is billed using a dedicated service item.

== Default Item ==
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

== Changing the LPI Item ==
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → Forms and Docs Reference Number'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

= Configuring Compounded Interest for a Customer =
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

= Mixing LPI with Normal Invoice Items =
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

== Recurring LPI Invoice Generation ==

The Recurring LPI Invoice feature allows users to automatically generate Late Payment Interest (LPI) invoices on a regular basis without having to create each invoice individually. This can save a significant amount of time, particularly for MCSTs, Management Corporations and property management companies that manage a large number of property units and need to apply late payment interest to overdue payments.

Once the recurring LPI setup has been configured, the system can generate the applicable LPI invoices based on the selected date. This helps to simplify the LPI billing process and reduces the amount of manual work required.

=== Preparation ===

Before generating recurring LPI invoices, the recurring LPI setup must first be configured.

# Navigate to '''Sales > Maintenance > Recurrent LPI'''.
# Set up the recurring LPI by filling in the required information. This defines the rules and parameters that the system will use when generating the LPI invoices.
# Review the information entered and click '''Save'''.

Once the recurring LPI setup has been saved, the system is ready to generate the LPI invoices.

=== Create Recurring LPI Invoices ===

To generate the recurring LPI invoices:

# Navigate to '''Sales > Transactions > Create and Print LPI Recurrent Invoices'''.
# Select the required '''date'''. This is an important step because the system will calculate and generate the LPI based on the selected date. The selected date determines which outstanding amounts are subject to LPI according to the recurring LPI settings.
# Click the '''Create LPI Invoice''' icon on the right to generate the applicable LPI invoices.
# The system will generate the LPI invoices based on the recurring LPI configuration and the selected date.
# Once the invoices have been generated, users can either '''print the invoices''' for distribution or '''email the invoices directly to the customers'''.

The recurring LPI process eliminates the need to create LPI invoices individually and is particularly useful for property management operations where LPI invoices need to be generated regularly for multiple property units.

= Recommended Practice =
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

Late Payment Interest

2026-08-28T06:09:26Z

Khkoh: /* Recurring LPI Invoice Generation */

__FORCETOC__

= Late Payment Interest (LPI) Module User Guide =

== Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

= Understanding Late Payment Interest =

== What is Late Payment Interest (LPI)? ==
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

=== Statutory or By-Law Provisions ===
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

=== Contractual Agreements ===
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==

Compounded interest occurs when previously charged interest becomes part of the amount used for subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be applied when expressly agreed upon by the contractual parties and permitted under the applicable laws or regulations.

The Highnix LPI Module supports both non-compounded and compounded interest calculations.
# '''Note:''' When '''LPI on LPI''' is enabled, '''new''' Late Payment Interest (LPI) invoices generated thereafter are flagged as eligible for future LPI calculations. If such an LPI invoice remains unpaid after the applicable grace period, its outstanding amount will be included in subsequent LPI calculations, resulting in compounded interest. LPI invoices generated before '''LPI on LPI''' was enabled remain non-compounded and are not retrospectively included in future LPI calculations.
= Configuring Late Payment Interest Terms =
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days.

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

= Defining the Late Payment Interest Item =
Late Payment Interest is billed using a dedicated service item.

== Default Item ==
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

== Changing the LPI Item ==
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → Forms and Docs Reference Number'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

= Configuring Compounded Interest for a Customer =
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

= Mixing LPI with Normal Invoice Items =
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

== Recurring LPI Invoice Generation ==
User can generate the Recurring LPI on a regular basis. This will save user tremendous amount of time to generate the LPI one-by-one. It is particularly useful for MCST or Property Management where late payment interest is chargeble by law.

=== Preparation ===
# Navigate to Sales, Maintenance, Recurrent LPI.
# Setup the LPI by filling in the information.
# Save it.

=== Create Recurring LPI Invoice ===
# To generate the recurring LPI inovice, navigate to Sales, Transaction, Create and Print LPI Recurrent Invoices
# Select the date. This is important because the LPI will be based on this date. And click on the "Create LPI Invoice" icon on the right.
# User can either print out the invoices or email the invoices to the customers.

= Recommended Practice =
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

Late Payment Interest

2026-08-28T06:06:50Z

Khkoh: /* Create */

__FORCETOC__

= Late Payment Interest (LPI) Module User Guide =

== Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

= Understanding Late Payment Interest =

== What is Late Payment Interest (LPI)? ==
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

=== Statutory or By-Law Provisions ===
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

=== Contractual Agreements ===
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==

Compounded interest occurs when previously charged interest becomes part of the amount used for subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be applied when expressly agreed upon by the contractual parties and permitted under the applicable laws or regulations.

The Highnix LPI Module supports both non-compounded and compounded interest calculations.
# '''Note:''' When '''LPI on LPI''' is enabled, '''new''' Late Payment Interest (LPI) invoices generated thereafter are flagged as eligible for future LPI calculations. If such an LPI invoice remains unpaid after the applicable grace period, its outstanding amount will be included in subsequent LPI calculations, resulting in compounded interest. LPI invoices generated before '''LPI on LPI''' was enabled remain non-compounded and are not retrospectively included in future LPI calculations.
= Configuring Late Payment Interest Terms =
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days.

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

= Defining the Late Payment Interest Item =
Late Payment Interest is billed using a dedicated service item.

== Default Item ==
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

== Changing the LPI Item ==
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → Forms and Docs Reference Number'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

= Configuring Compounded Interest for a Customer =
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

= Mixing LPI with Normal Invoice Items =
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

== Recurring LPI Invoice Generation ==
User can generate the Recurring LPI on a regular basis. This is particularly useful for MCST or Property Management.

=== Preparation ===
# Navigate to Sales, Maintenance, Recurrent LPI.
# Setup the LPI by filling in the information.
# Save it.

=== Create Recurring LPI Invoice ===
# To generate the recurring LPI inovice, navigate to Sales, Transaction, Create and Print LPI Recurrent Invoices
# Select the date. This is important because the LPI will be based on this date. And click on the "Create LPI Invoice" icon on the right.
# User can either print out the invoices or email the invoices to the customers.

= Recommended Practice =
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

Late Payment Interest

2026-08-27T08:58:33Z

Khkoh: /* Recurring LPI Invoice Generation */

__FORCETOC__

= Late Payment Interest (LPI) Module User Guide =

== Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

= Understanding Late Payment Interest =

== What is Late Payment Interest (LPI)? ==
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

=== Statutory or By-Law Provisions ===
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

=== Contractual Agreements ===
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==

Compounded interest occurs when previously charged interest becomes part of the amount used for subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be applied when expressly agreed upon by the contractual parties and permitted under the applicable laws or regulations.

The Highnix LPI Module supports both non-compounded and compounded interest calculations.
# '''Note:''' When '''LPI on LPI''' is enabled, '''new''' Late Payment Interest (LPI) invoices generated thereafter are flagged as eligible for future LPI calculations. If such an LPI invoice remains unpaid after the applicable grace period, its outstanding amount will be included in subsequent LPI calculations, resulting in compounded interest. LPI invoices generated before '''LPI on LPI''' was enabled remain non-compounded and are not retrospectively included in future LPI calculations.
= Configuring Late Payment Interest Terms =
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days.

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

= Defining the Late Payment Interest Item =
Late Payment Interest is billed using a dedicated service item.

== Default Item ==
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

== Changing the LPI Item ==
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → Forms and Docs Reference Number'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

= Configuring Compounded Interest for a Customer =
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

= Mixing LPI with Normal Invoice Items =
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

== Recurring LPI Invoice Generation ==
User can generate the Recurring LPI on a regular basis. This is particularly useful for MCST or Property Management.

=== Preparation ===
# Navigate to Sales, Maintenance, Recurrent LPI.
# Setup the LPI by filling in the information.
# Save it.

=== Create ===
# To generate the recurring LPI inovice, navigate to Sales, Transaction, Create and Print LPI Recurrent Invoices
# Select the date. This is important because the LPI will be based on this date. And click on the "Create LPI Invoice" icon on the right.
# User can either print out the invoices or email the invoices to the customers.

= Recommended Practice =
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

Late Payment Interest

2026-08-27T08:58:13Z

Khkoh: /* Recurring LPI Invoice Generation */

__FORCETOC__

= Late Payment Interest (LPI) Module User Guide =

== Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

= Understanding Late Payment Interest =

== What is Late Payment Interest (LPI)? ==
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

=== Statutory or By-Law Provisions ===
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

=== Contractual Agreements ===
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==

Compounded interest occurs when previously charged interest becomes part of the amount used for subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be applied when expressly agreed upon by the contractual parties and permitted under the applicable laws or regulations.

The Highnix LPI Module supports both non-compounded and compounded interest calculations.
# '''Note:''' When '''LPI on LPI''' is enabled, '''new''' Late Payment Interest (LPI) invoices generated thereafter are flagged as eligible for future LPI calculations. If such an LPI invoice remains unpaid after the applicable grace period, its outstanding amount will be included in subsequent LPI calculations, resulting in compounded interest. LPI invoices generated before '''LPI on LPI''' was enabled remain non-compounded and are not retrospectively included in future LPI calculations.
= Configuring Late Payment Interest Terms =
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days.

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

= Defining the Late Payment Interest Item =
Late Payment Interest is billed using a dedicated service item.

== Default Item ==
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

== Changing the LPI Item ==
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → Forms and Docs Reference Number'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

= Configuring Compounded Interest for a Customer =
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

= Mixing LPI with Normal Invoice Items =
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

== Recurring LPI Invoice Generation ==
User can generate the Recurring LPI on a regular basis. This is particularly useful for MCST or Property Management.

=== Preparation: ===
# Navigate to Sales, Maintenance, Recurrent LPI.
# Setup the LPI by filling in the information.
# Save it.

=== Create: ===
# To generate the recurring LPI inovice, navigate to Sales, Transaction, Create and Print LPI Recurrent Invoices
# Select the date. This is important because the LPI will be based on this date. And click on the "Create LPI Invoice" icon on the right.
# User can either print out the invoices or email the invoices to the customers.

= Recommended Practice =
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

Late Payment Interest

2026-08-27T06:47:36Z

Khkoh: /* Examples of Late Payment Interest Calculation */

__FORCETOC__

= Late Payment Interest (LPI) Module User Guide =

== Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

= Understanding Late Payment Interest =

== What is Late Payment Interest (LPI)? ==
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

=== Statutory or By-Law Provisions ===
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

=== Contractual Agreements ===
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==

Compounded interest occurs when previously charged interest becomes part of the amount used for subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be applied when expressly agreed upon by the contractual parties and permitted under the applicable laws or regulations.

The Highnix LPI Module supports both non-compounded and compounded interest calculations.
# '''Note:''' When '''LPI on LPI''' is enabled, '''new''' Late Payment Interest (LPI) invoices generated thereafter are flagged as eligible for future LPI calculations. If such an LPI invoice remains unpaid after the applicable grace period, its outstanding amount will be included in subsequent LPI calculations, resulting in compounded interest. LPI invoices generated before '''LPI on LPI''' was enabled remain non-compounded and are not retrospectively included in future LPI calculations.
= Configuring Late Payment Interest Terms =
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days.

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

= Defining the Late Payment Interest Item =
Late Payment Interest is billed using a dedicated service item.

== Default Item ==
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

== Changing the LPI Item ==
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → Forms and Docs Reference Number'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

= Configuring Compounded Interest for a Customer =
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

= Mixing LPI with Normal Invoice Items =
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

== Recurring LPI Invoice Generation ==
User can generate the Recurring LPI on a regular basis. This is particularly useful for MCST or Property Management.

# Navigate to Sales, Maintenance, Recurrent LPI.
# Setup the LPI by filling in the information.
# Save it.
# To generate the recurring LPI inovice, navigate to Sales, Transaction, Create and Print LPI Recurrent Invoices
# Select the date. This is important because the LPI will be based on this date. And click on the "Create LPI Invoice" icon on the right.
# User can either print out the invoices or email the invoices to the customers.

= Recommended Practice =
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

System Setup

2026-08-25T05:07:20Z

Khkoh: /* Manufacturing Defaults: */

__FORCETOC__

== '''Company Setup:''' ==
The company setup is a critical step in the implementation process. This section contains essential configurations that require careful attention. Most fields are self-explanatory, but fields marked with the "?" icon indicate areas requiring special attention or providing additional information.

=== Company Details ===
::The Company Details section captures key information about the organization, such as its name, address, and other critical data. Below are specific fields that require detailed attention:

::# '''Email Address''': This is the email address that appears on transaction documents. It is separate from the "BCC Address for all outgoing mails" field.
::# '''BCC Address for all outgoing mails''': All outgoing transaction-related emails will be blind-copied to this address.
::# '''GST No''': If left blank, invoices will be printed with the default document title, either '''"INVOICE"''' or '''"SALES INVOICE"''' (default: "INVOICE"). If filled, the document title will be printed as '''"TAX INVOICE"'''. This title setting is a one-time change and can be requested from Highnix.
::# '''Banqup Client Number''': Obtain this number from Banqup.
::# '''Banqup Client ID''': Obtain this ID from Banqup.
::# '''Banqup Client UUID''': Obtain this UUID from Banqup.
::# '''Banqup API URL''': This field must be completed for the Peppol InvoiceNow and E-Docs features to function properly. Contact Highnix for the correct URL. (Example: <nowiki>https://v4-api.uat.platform.eu.banqup.com</nowiki>)
::# '''Banqup Client Token''': This token is mandatory for the Peppol InvoiceNow and E-Docs features. Contact Highnix to obtain the correct token. (Example: <code>1f5c0d6f-17b4-4b61-83a5-35956c4cd92f</code>)
::# '''Banqup Client Secret''': This secret is required for the Peppol InvoiceNow and E-Docs functionality. Contact Highnix to obtain the correct value.
::# '''Home Currency''': Use the drop-down menu to select the desired home or functional currency. By default, the system is preconfigured with SGD and USD. If other currency codes are needed, navigate to '''Finance Mgt > Maintenance > Add and Edit Currency'''. '''Note:''' At least one exchange rate must be entered under '''Finance Mgt > Maintenance > Update Exchange Rates Tables''' for foreign currencies to function properly.
::# '''Fiscal Year''': Select the fiscal year from the pull-down menu. If the desired fiscal year does not appear, click on the first "?" icon or navigate to '''System Setup > Company Setup > Fiscal Year''' to add a new fiscal year. Fiscal year must be updated when a new year starts. If the fiscal year does not begin on January 1 (e.g., starts on April 1), follow the steps in [[Company Setup#Fiscal%20Year|'''Company Setup#Fiscal Year''']] to configure it. This setup is done once, and future fiscal years can be added from that page.
::# '''Tax Periods''': Indicates the interval between each GST/VAT reporting period. For example, in Singapore, it is typically every 3 months.
::# '''Tax Last Period''': Enter the number of months since the last filed tax period. For example, if the current month is July and the last tax was filed in April, enter "3". The system will compute the current tax period accordingly.
::# '''Company Logo''': The current logo stored in the system, used in reports and documents such as invoices, delivery orders, and purchase orders.
::# '''New Company Logo (.jpg)''': Upload a new company logo in .jpg format to replace the existing one.
::# '''Delete Company Logo''': If this checkbox is ticked and the form is updated, the currently uploaded logo will be removed from the system.
::# '''Use Dimensions''': Enables tracking and reporting by dimensions (e.g., departments, cost centers), useful for segmenting Profit & Loss and expense reports.
::# '''Base for auto price calculations''': Selects the reference point (e.g., Standard Cost or Sales Price) used for automatic price mark-up or mark-down.
::# '''Add Price from Std Cost''': If selected, the system will auto-generate a selling price based on the standard cost and predefined margin for the selected customer type during sales transactions.
::# '''Round to nearest Cents''': Defines the rounding rule (e.g., 5 cents, 1 cent) applied to calculated prices or totals in documents. '''Note:''' Do not enter a value smaller than 1.
::# '''Search Item List''': Enables keyword search or zooming when selecting items in sales and purchase forms.
::# '''Search Customer List''': Enables keyword search or zooming when selecting customers in transactions or reports.
::# '''Search Supplier List''': Enables keyword search or zooming when selecting suppliers in transactions or reports.
::# '''Automatic Revaluation Currency Accounts''': Automatically revalues foreign currency balances upon each transaction. '''Note:''' DO NOT enable this unless you are certain. If you plan to perform manual revaluation, leave this disabled. Enabling this may cause confusion if the user is not familiar with accounting.
::# '''Time Zone on Reports''': Displays the selected time zone on report timestamps—useful for organizations with users in different regions.
::# '''Login Timeout''': Sets the duration of user inactivity (in minutes) before automatic logout occurs.
::# '''Print PayNow QR Code On Invoices''': If enabled, prints the company’s PayNow QR code on invoices to allow convenient payments by customers.
::# '''Doc Title to appear on Proforma Invoice''': Sets the title shown on proforma invoices (e.g., “Invoice” or “Proforma Invoice”).
::# '''Sales Terms''': The currently uploaded PDF file containing your standard sales terms, attached or printed with sales documents.
::# '''New Sales Terms (.pdf)''': Upload a new PDF file containing updated sales terms.
::# '''Delete Sales Terms file''': Deletes the currently uploaded sales terms file.
::# '''Purchase Terms''': The currently uploaded PDF file containing your standard purchase terms, attached or printed with purchase documents.
::# '''New Purchase Terms (.pdf)''': Upload a new PDF file containing updated purchase terms.
::# '''Delete Purchase Terms file''': Deletes the currently uploaded purchase terms file.

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=== User Accounts ===
:The special User Accounts module is accessible only to super system administrators. To access to this moduce, user will need to purchase a special license and to go through an User administrtion training. User who purchase an unlimited license system will have the super system administrator license included and will have access to this module.

=== User Access Control ===
:Access to the User Access Control module is limited to those with a special user license. The user must have at least a super user license and undergo training to provide User Access Control support for other users.

=== User Login and Access ===
: The User Login and Access module is designed to simplify user administration. Access to this module requires at least a super user license. This module enables authorized users to:
:# Reset user passwords.
:# Update user details.
:# Modify preset access rights (or access levels).
:# Manage user login expiry dates (ideal for contract or temporary staff).
:# Set the number of login attempts (useful for delivery personnel, allowing them to log in, access digital delivery notes, and enable customers to sign delivery orders digitally).
:# Configure default language and default location settings.
:# View price information when accessing delivery note details.

=== Display Preference Setup ===
: The Display Preference Setup module allows users to customize the following preferences:
: Decimal Places:
:# Prices/Amounts
:# Quantities: Product quantities (e.g., 2.'''35''' Kg).
:# Exchange Rates
:# Percentages
: Date Formats:
:# It is advised to retain the format as '''DD-MM-YYYY''' for Singapore unless absolutely necessary. Use "-" as the date separator.
: Numeric Separators:
:# Configure thousand and decimal separators.
: Language:
:# Set the default language.
: Show Hints for New Users:
:# Enable tooltips ("?") next to field descriptions. Note: This feature may not work on smart mobile devices as it depends on browser behavior.
: Display Options:
:# Show GL Information
:# Show Item Codes
:# Page Size: Default is set to A4.
:# Start-up Tab: Define the landing page after successful login.
:# Use icons instead of text links.
: Reports and Queries:
:# Use Popup Windows to Display Reports: Open reports in a new window.
:# Query Page Size: Specify the number of rows displayed in query results.
: Other Preferences:
:# Remember Last Document Date: The system will use the last entered document date.
:# Printing Profile: (Obsoleted).

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=== Forms and Docs Reference Number ===
: The Forms and Docs Reference Number section allows users to define the starting transaction numbers for various types of transactions. The format can include any alphanumeric prefix but must end with numeric characters. The system uses the trailing numeric portion to increment by 1 whenever a transaction is successfully entered.

: Important Notes:
:# If the user manually edits an automatically assigned number, the system will treat the edited number as unused and will not apply the automatic increment.
:# Manual edits to the reference number can sometimes cause system confusion. For example:
:: If the system assigns the invoice number as '''INV-002''' but the user changes it to '''INV-005''', the system will:
:::# Accept '''INV-005''' as valid but will not adjust the increment sequence for subsequent transactions.
:::# Continue the sequence from the last valid automatically assigned number, e.g., the next transaction will be '''INV-003'''.
:: When the sequence reaches '''INV-005''' again, the system will flag it as a duplicate and reject the transaction.

: To resolve this issue, users must return to this page and update the starting transaction number to a higher unused number, such as '''INV-006''', to continue processing transactions without errors.

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=== GST Type Setup ===
:# The GST Type represents the tax codes and their respective rates. These tax codes can be obtained from the IRAS website by searching for the phrase "iras tax codes" on Google (or the equivalent tax department/agency for your location). For a more detail description and example, please click on this link: '''[[GST#Tax Type Setup]].'''
:## '''Description''': Provide a brief name or description for this tax type. For example, '''SR''' (Standard Rated) is an Output Tax code representing the standard GST rate. This code, along with its applicable tax percentage, will be printed on sales transaction documents.
:## '''Default Rate''': The applicable tax rate in percentage. As of 2025, the standard GST rate is '''9%'''.
:## '''Sales GL Account''': The General Ledger (GL) account code for Sales GST (Output Tax).
:## '''Purchasing GL Account''': The General Ledger (GL) account code for Purchase GST (Input Tax).

:* '''Note''':
:*# The net tax payable is calculated as: '''Output Tax - Input Tax'''. If the result is negative, the amount can be claimed from the tax authority.
:*# To avoid complications with manual journal entries, it is recommended that each tax type be assigned unique Sales and Purchasing GL accounts. However, using the same GL account code for both is also acceptable.

=== GST Tax Groups ===
GST Tax Groups allow users to define and manage the taxes applicable to buyers, sellers, and products. This feature ensures that the correct tax rates are applied based on the transaction details, helping businesses stay compliant with tax regulations. For a more detail description and example, please click on this link: [[GST#Tax%20Group%20Setup|'''GST#Tax Group Setup''']]

==== Key Features: ====

# A '''GST Tax Group''' can be linked to one or more '''GST Tax Types''', enabling flexibility in applying various tax structures.
# Tax groups can be configured to include or exclude shipping fees, ensuring taxes are applied where necessary.
# For more advanced setups, such as invoices that contain both taxable and non-taxable items, users are advised to refer to [https://help.highnix.com/helpwiki/index.php?title=GST#Mixed_GST_In_One_Invoice '''Mixed GST In One Invoice'''] for guidance.

==== Adding a New GST Tax Group: ====

# '''Enter a Description''': Provide a concise and descriptive name for the tax group that clearly identifies its purpose. For example, <code>"Sales Invoice with SR"</code> for invoices subject to standard-rated tax.
# '''Select Tax Types''': In the table below, select the relevant tax types to associate with this group. A group can include a single tax type or multiple tax types based on your requirements.
# '''Include Shipping Fee (Optional)''': If the tax should also be applied to shipping fees, check this option. When selected, the system will automatically calculate and apply tax to the shipping cost.

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=== Item Tax Exemption ===

# Please click on this link: [[GST#Item Tax Exemption Setup|'''GST#Item Tax Exemption Setup''']] for detail steps.

=== Default Account Codes and System General GL Setup ===
As part of the implementation, several default account codes must be set up in the '''System General GL Setup'''. Below are the key account categories and their configurations:

==== General GL Accounts: ====

# '''Retained Earnings''': Account for retaining profit from previous years.
# '''Profit/Loss Year''': Account for the current year’s profit or loss.
# '''Exchange Variance Account (Realized)''': Used to account for exchange rate differences.
# '''Bank Charges Account''': Tracks bank fees.
# '''Revaluation GL Account (Unrealized)''': Account for unrealized gains or losses from asset revaluation.

==== Customers and Sales: ====

# '''Default Credit Limit''': (Default set to $1,000).
# '''Accumulate Batch Shipping''': Option to accumulate multiple delivery shipping costs into a single invoice.
# '''Legal Text on Invoice''': Custom text that appears at the bottom of invoices.
# '''Shipping Charge Account''': GL account for shipping charges.

==== Customers and Sales Defaults (GL Account Codes): ====

# '''Receivable Account''': GL account for accounts receivable.
# '''Sales Account''': (Default is set to “Use Item Sales Accounts”). Follows the GL account set at the product item level.
# '''Sales Discount Account''': Account for discounts given to customers.
# '''Prompt Payment Discount Account''': GL account for discounts given to customers who pay early (optional).
# '''Quote Valid Days''': Default validity period for sales quotations.
# '''Delivery Required By''': Default delivery date for products (can be modified per Sales Order).

==== Dimension Defaults: ====

# '''Dimension Required By After''': Dimensions Required By is a configuration setting that defines the number of days after which a dimension (such as a project, department, or cost center) is considered overdue or past its target date.

==== Suppliers and Purchasing: ====

# '''Delivery Over-Receive Allowance''': Percentage tolerance for over-receiving delivered quantities.
# '''Invoice Over-Charge Allowance''': Percentage tolerance for processing an invoice if the variance is within limits.

==== Suppliers and Purchasing Defaults: ====

# '''Payable Account''': GL account for accounts payable.
# '''Purchase Discount Account''': Account for purchase discounts received.
# '''GRN Clearing Account''': Default setting is "No postings on GRN." If a GL posting for goods received is desired, select a GL account from the dropdown menu.
# '''Inventory Negative Inventory Allowed?''': If checked, the system allows shipment even when stock is unavailable, resulting in negative inventory.
## '''Important''': Once this setting is enabled, it cannot be changed after transactions begin. Be sure that negative inventory aligns with your business operations.

==== Item Defaults: ====

# '''Sales Account''': GL account for sales revenue.
# '''Inventory Account''': Account for inventory assets.
# '''C.O.G.S./Expense Account''': Cost of Goods Sold (COGS) or expense account.
# '''Inventory Adjustments Account''': Account for adjustments to inventory.
# '''Item Assembly Costs Account''': Related to manufacturing costs.

==== Manufacturing Defaults: ====

# '''Work Order Required By After''': (Default is 20 days).
#* When you create a new work order, the system automatically calculates the default "Required By" date by adding this number of days to the current date.
#* Purpose: It establishes an expected production lead time, letting the shop floor know when the finished goods need to be ready.
#* Flexibility: This is just a baseline default. You can easily override the date manually whenever you create a specific work order. If the Manufacturing Module is not implemented, leave the setting as default.

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=== Fiscal Years ===

# Please click on this link: [[Company Setup#Fiscal%20Year|'''Company Setup#Fiscal Year''']] for detail steps.

== '''Other Setup:''' ==

=== Payment Terms ===

# User can create their own payment terms here.
# Enter the Description of the payment terms if it is not already in the default list. E.g.: Nett 60 days.
# There are 4 types of Payment.
## '''Prepayment:''' This payment term requires the customer to make full payment '''in advance,''' that is, '''before''' goods or services are delivered, and '''before''' an invoice is issued.
### Prepayment is '''recorded first''' (e.g., as an advance payment or deposit) '''without''' a matching invoice. To do this, navigate to '''Finance Mgt → Receive Customer Payment''' and enter the payment when it is received.
### If the customer requests a Proforma Invoice, you can create one under: '''Sales Mgt → Transaction → Add New Proforma Invoice Entry'''.
### The payment is stored in the system and shown as '''Customer Credit / Advance'''.
### When the actual invoice is issued later, you can '''allocate''' the prepayment to offset the invoice amount.
### Note: The system will flag the invoice as '''Past Due''' immediately upon creation. Therefore, the prepayment should be allocated to the invoice right away.
## '''Cash:''' Payment is expected '''immediately''' upon invoicing.
### When an invoice is issued, the customer is expected to pay at once. This is not a credit sale.
### The invoice is posted '''as usual''' to Accounts Receivable.
### Once the invoice is issued, it is '''marked as fully paid''' and the transaction is considered '''closed'''.
## '''After number of days:''' This payment term allows you to define a fixed number of days after the invoice date for payment to be due.
### For example, if you enter "30", the payment will be due 30 days after the invoice date.
### Common descriptions for this term include: '''Net 30''', '''Net 45''', or '''Net 60''', depending on the number of days specified.
### The system will automatically calculate the due date based on the number of days entered.
## '''Day in following month:''' This term allows you to set a specific day of the following month as the due date, regardless of the invoice date.
### For example, if you enter "15", then all invoices issued in June will have a due date of '''15 July'''.
### If 0 is specified, this payment term will behave as "Cash" payment.
### If user specify any number of days, it will set the due date accordingly. For example, if user specify 32, then it will be dued in 1 Aug.
### This is commonly used in industries with fixed monthly billing cycles, where all payments are due on a particular date in the next month. Or, an agreed payment terms with the customer.

[[#Top|Go to Top]]

=== Shipping Service Providers ===
This section allows users to define and manage third-party shipping or courier companies used for delivery of goods.

# Add commonly used shipping providers such as DHL, FedEx, NinjaVan, etc.
# These providers can be selected when processing Sales Deliveries or creating Delivery Orders.
# Additional details like contact info, service area, and tracking link formats can be maintained for reference.

=== Dashboard Setup ===
This section allows the user to customise the main dashboard view shown after login. The dashboard is currently fixed and not all users have access to it. An AI based, 3rd party dashboard is being considered to add to the system.

# Enable or disable dashboard widgets such as sales charts, quick links, reminders, and statistics.
# Assign dashboards to different user roles for tailored access (e.g., sales, finance, warehouse).
# A well-configured dashboard helps users access relevant information quickly.

=== Reminder Setup ===

This section allows Plus and Pro users who have subscribed to the Dashboard and Reminder features to create and configure automatic reminders. Reminder messages will appear prominently on the dashboard to keep users informed and on track.

# Set reminders for important tasks such as follow-ups, unpaid invoices, delivery deadlines.
# Link reminders to customers, suppliers, documents, or general memos for better context.
# Users will receive reminder notifications directly on their dashboard.

=== Contact Categories ===
This section is for defining categories to classify your contacts.

# Helps organise contacts under meaningful groups such as "Customer" (customer), "Customer Branch" (cust_branch), or "Supplier" (supplier).
# Categories can be assigned to both customer and supplier contacts.
# Useful for filtering, reporting, and targeted communication.

== Maintenance ==

=== Void Transactions ===

# Transactions can be voided only if they have not been closed.
# To void a closed transaction, the user must first re-open it by reversing all subsequent related transactions.
# For example, if you want to void a closed delivery (one that has been delivered, invoiced, and fully paid), the system will prevent this or show a warning that the transaction cannot be found because it is closed.
# In such cases, you must first void the payments, then the invoice, and finally the delivery note, in that order.
# This reversal process applies to all types of transactions.
# Once the transaction is located, click on the pencil icon on the right of the transaction. Enter a note in the Memo box so that you know why this transaction is voided. You can state something like: "Duplicate entry", "Incorrect item" etc.

=== Attach Documents ===

# Users can attach one or more documents to any transaction. Supported file types include technical drawings (PDF or images), Excel spreadsheets, Word documents, and others.
# To attach a document to a transaction, such as a Sales Invoice, you need to know the transaction number (the system’s internal number, e.g., 556, 557), not the transaction reference (e.g., INV-00001).
# Select the transaction type, for example, "Sales Order."
# Enter the transaction number (remember, this is not the transaction reference).
# Enter a description for the attachment, e.g., "Drawing 12345."
# Click "Choose file" and select the file you want to attach. Only one file can be attached at a time.
# Click "Add New" to upload the file.
# '''Note:''' Attached files are stored in their original format in the user’s system home directory, not in the database. The database stores only the link to the file. This design reduces database load and improves system performance.
# To view attached files, open the transaction in "View" mode (see Fig 1 below). A link to each attached file appears at the bottom of the screen.
# Clicking the link opens the file. For image or PDF files, Chrome browser will display them directly without launching external applications. For Excel files, the system will launch Microsoft Excel or LibreOffice Calc, depending on what is installed.
[[File:Attach file.png|none|thumb|800x800px|Fig 1: The file attachment link shown at the bottom of the transaction view screen.]]

=== Backup and Restore ===

# '''Backup:'''
## Navigate to '''System Setup > Maintenance > Backup and Restore'''.
## Click on the button '''"Create Backup - Click Only Once"'''. Do not click the button again while the backup is in progress.
## Once the backup is complete, a green message will appear at the top of the screen: Backup successfully generated. Filename: XXXXXXXX_20250623_161649.sql The digits represent the date and time in the format: '''DDMMYYYY_HHMMSS.sql'''.
# '''Restore:'''
## Select the desired backup file.
## Click on the '''Restore''' button.
'''Note:''' Once restored, all current data will be overwritten. This action is not reversible unless you have previously performed a backup.

System Setup

2026-08-25T05:04:50Z

Khkoh: /* Dimension Defaults: */

__FORCETOC__

== '''Company Setup:''' ==
The company setup is a critical step in the implementation process. This section contains essential configurations that require careful attention. Most fields are self-explanatory, but fields marked with the "?" icon indicate areas requiring special attention or providing additional information.

=== Company Details ===
::The Company Details section captures key information about the organization, such as its name, address, and other critical data. Below are specific fields that require detailed attention:

::# '''Email Address''': This is the email address that appears on transaction documents. It is separate from the "BCC Address for all outgoing mails" field.
::# '''BCC Address for all outgoing mails''': All outgoing transaction-related emails will be blind-copied to this address.
::# '''GST No''': If left blank, invoices will be printed with the default document title, either '''"INVOICE"''' or '''"SALES INVOICE"''' (default: "INVOICE"). If filled, the document title will be printed as '''"TAX INVOICE"'''. This title setting is a one-time change and can be requested from Highnix.
::# '''Banqup Client Number''': Obtain this number from Banqup.
::# '''Banqup Client ID''': Obtain this ID from Banqup.
::# '''Banqup Client UUID''': Obtain this UUID from Banqup.
::# '''Banqup API URL''': This field must be completed for the Peppol InvoiceNow and E-Docs features to function properly. Contact Highnix for the correct URL. (Example: <nowiki>https://v4-api.uat.platform.eu.banqup.com</nowiki>)
::# '''Banqup Client Token''': This token is mandatory for the Peppol InvoiceNow and E-Docs features. Contact Highnix to obtain the correct token. (Example: <code>1f5c0d6f-17b4-4b61-83a5-35956c4cd92f</code>)
::# '''Banqup Client Secret''': This secret is required for the Peppol InvoiceNow and E-Docs functionality. Contact Highnix to obtain the correct value.
::# '''Home Currency''': Use the drop-down menu to select the desired home or functional currency. By default, the system is preconfigured with SGD and USD. If other currency codes are needed, navigate to '''Finance Mgt > Maintenance > Add and Edit Currency'''. '''Note:''' At least one exchange rate must be entered under '''Finance Mgt > Maintenance > Update Exchange Rates Tables''' for foreign currencies to function properly.
::# '''Fiscal Year''': Select the fiscal year from the pull-down menu. If the desired fiscal year does not appear, click on the first "?" icon or navigate to '''System Setup > Company Setup > Fiscal Year''' to add a new fiscal year. Fiscal year must be updated when a new year starts. If the fiscal year does not begin on January 1 (e.g., starts on April 1), follow the steps in [[Company Setup#Fiscal%20Year|'''Company Setup#Fiscal Year''']] to configure it. This setup is done once, and future fiscal years can be added from that page.
::# '''Tax Periods''': Indicates the interval between each GST/VAT reporting period. For example, in Singapore, it is typically every 3 months.
::# '''Tax Last Period''': Enter the number of months since the last filed tax period. For example, if the current month is July and the last tax was filed in April, enter "3". The system will compute the current tax period accordingly.
::# '''Company Logo''': The current logo stored in the system, used in reports and documents such as invoices, delivery orders, and purchase orders.
::# '''New Company Logo (.jpg)''': Upload a new company logo in .jpg format to replace the existing one.
::# '''Delete Company Logo''': If this checkbox is ticked and the form is updated, the currently uploaded logo will be removed from the system.
::# '''Use Dimensions''': Enables tracking and reporting by dimensions (e.g., departments, cost centers), useful for segmenting Profit & Loss and expense reports.
::# '''Base for auto price calculations''': Selects the reference point (e.g., Standard Cost or Sales Price) used for automatic price mark-up or mark-down.
::# '''Add Price from Std Cost''': If selected, the system will auto-generate a selling price based on the standard cost and predefined margin for the selected customer type during sales transactions.
::# '''Round to nearest Cents''': Defines the rounding rule (e.g., 5 cents, 1 cent) applied to calculated prices or totals in documents. '''Note:''' Do not enter a value smaller than 1.
::# '''Search Item List''': Enables keyword search or zooming when selecting items in sales and purchase forms.
::# '''Search Customer List''': Enables keyword search or zooming when selecting customers in transactions or reports.
::# '''Search Supplier List''': Enables keyword search or zooming when selecting suppliers in transactions or reports.
::# '''Automatic Revaluation Currency Accounts''': Automatically revalues foreign currency balances upon each transaction. '''Note:''' DO NOT enable this unless you are certain. If you plan to perform manual revaluation, leave this disabled. Enabling this may cause confusion if the user is not familiar with accounting.
::# '''Time Zone on Reports''': Displays the selected time zone on report timestamps—useful for organizations with users in different regions.
::# '''Login Timeout''': Sets the duration of user inactivity (in minutes) before automatic logout occurs.
::# '''Print PayNow QR Code On Invoices''': If enabled, prints the company’s PayNow QR code on invoices to allow convenient payments by customers.
::# '''Doc Title to appear on Proforma Invoice''': Sets the title shown on proforma invoices (e.g., “Invoice” or “Proforma Invoice”).
::# '''Sales Terms''': The currently uploaded PDF file containing your standard sales terms, attached or printed with sales documents.
::# '''New Sales Terms (.pdf)''': Upload a new PDF file containing updated sales terms.
::# '''Delete Sales Terms file''': Deletes the currently uploaded sales terms file.
::# '''Purchase Terms''': The currently uploaded PDF file containing your standard purchase terms, attached or printed with purchase documents.
::# '''New Purchase Terms (.pdf)''': Upload a new PDF file containing updated purchase terms.
::# '''Delete Purchase Terms file''': Deletes the currently uploaded purchase terms file.

[[#Top|Go to Top]]

=== User Accounts ===
:The special User Accounts module is accessible only to super system administrators. To access to this moduce, user will need to purchase a special license and to go through an User administrtion training. User who purchase an unlimited license system will have the super system administrator license included and will have access to this module.

=== User Access Control ===
:Access to the User Access Control module is limited to those with a special user license. The user must have at least a super user license and undergo training to provide User Access Control support for other users.

=== User Login and Access ===
: The User Login and Access module is designed to simplify user administration. Access to this module requires at least a super user license. This module enables authorized users to:
:# Reset user passwords.
:# Update user details.
:# Modify preset access rights (or access levels).
:# Manage user login expiry dates (ideal for contract or temporary staff).
:# Set the number of login attempts (useful for delivery personnel, allowing them to log in, access digital delivery notes, and enable customers to sign delivery orders digitally).
:# Configure default language and default location settings.
:# View price information when accessing delivery note details.

=== Display Preference Setup ===
: The Display Preference Setup module allows users to customize the following preferences:
: Decimal Places:
:# Prices/Amounts
:# Quantities: Product quantities (e.g., 2.'''35''' Kg).
:# Exchange Rates
:# Percentages
: Date Formats:
:# It is advised to retain the format as '''DD-MM-YYYY''' for Singapore unless absolutely necessary. Use "-" as the date separator.
: Numeric Separators:
:# Configure thousand and decimal separators.
: Language:
:# Set the default language.
: Show Hints for New Users:
:# Enable tooltips ("?") next to field descriptions. Note: This feature may not work on smart mobile devices as it depends on browser behavior.
: Display Options:
:# Show GL Information
:# Show Item Codes
:# Page Size: Default is set to A4.
:# Start-up Tab: Define the landing page after successful login.
:# Use icons instead of text links.
: Reports and Queries:
:# Use Popup Windows to Display Reports: Open reports in a new window.
:# Query Page Size: Specify the number of rows displayed in query results.
: Other Preferences:
:# Remember Last Document Date: The system will use the last entered document date.
:# Printing Profile: (Obsoleted).

[[#Top|Go to Top]]

=== Forms and Docs Reference Number ===
: The Forms and Docs Reference Number section allows users to define the starting transaction numbers for various types of transactions. The format can include any alphanumeric prefix but must end with numeric characters. The system uses the trailing numeric portion to increment by 1 whenever a transaction is successfully entered.

: Important Notes:
:# If the user manually edits an automatically assigned number, the system will treat the edited number as unused and will not apply the automatic increment.
:# Manual edits to the reference number can sometimes cause system confusion. For example:
:: If the system assigns the invoice number as '''INV-002''' but the user changes it to '''INV-005''', the system will:
:::# Accept '''INV-005''' as valid but will not adjust the increment sequence for subsequent transactions.
:::# Continue the sequence from the last valid automatically assigned number, e.g., the next transaction will be '''INV-003'''.
:: When the sequence reaches '''INV-005''' again, the system will flag it as a duplicate and reject the transaction.

: To resolve this issue, users must return to this page and update the starting transaction number to a higher unused number, such as '''INV-006''', to continue processing transactions without errors.

[[#Top|Go to Top]]

=== GST Type Setup ===
:# The GST Type represents the tax codes and their respective rates. These tax codes can be obtained from the IRAS website by searching for the phrase "iras tax codes" on Google (or the equivalent tax department/agency for your location). For a more detail description and example, please click on this link: '''[[GST#Tax Type Setup]].'''
:## '''Description''': Provide a brief name or description for this tax type. For example, '''SR''' (Standard Rated) is an Output Tax code representing the standard GST rate. This code, along with its applicable tax percentage, will be printed on sales transaction documents.
:## '''Default Rate''': The applicable tax rate in percentage. As of 2025, the standard GST rate is '''9%'''.
:## '''Sales GL Account''': The General Ledger (GL) account code for Sales GST (Output Tax).
:## '''Purchasing GL Account''': The General Ledger (GL) account code for Purchase GST (Input Tax).

:* '''Note''':
:*# The net tax payable is calculated as: '''Output Tax - Input Tax'''. If the result is negative, the amount can be claimed from the tax authority.
:*# To avoid complications with manual journal entries, it is recommended that each tax type be assigned unique Sales and Purchasing GL accounts. However, using the same GL account code for both is also acceptable.

=== GST Tax Groups ===
GST Tax Groups allow users to define and manage the taxes applicable to buyers, sellers, and products. This feature ensures that the correct tax rates are applied based on the transaction details, helping businesses stay compliant with tax regulations. For a more detail description and example, please click on this link: [[GST#Tax%20Group%20Setup|'''GST#Tax Group Setup''']]

==== Key Features: ====

# A '''GST Tax Group''' can be linked to one or more '''GST Tax Types''', enabling flexibility in applying various tax structures.
# Tax groups can be configured to include or exclude shipping fees, ensuring taxes are applied where necessary.
# For more advanced setups, such as invoices that contain both taxable and non-taxable items, users are advised to refer to [https://help.highnix.com/helpwiki/index.php?title=GST#Mixed_GST_In_One_Invoice '''Mixed GST In One Invoice'''] for guidance.

==== Adding a New GST Tax Group: ====

# '''Enter a Description''': Provide a concise and descriptive name for the tax group that clearly identifies its purpose. For example, <code>"Sales Invoice with SR"</code> for invoices subject to standard-rated tax.
# '''Select Tax Types''': In the table below, select the relevant tax types to associate with this group. A group can include a single tax type or multiple tax types based on your requirements.
# '''Include Shipping Fee (Optional)''': If the tax should also be applied to shipping fees, check this option. When selected, the system will automatically calculate and apply tax to the shipping cost.

[[#Top|Go to Top]]

=== Item Tax Exemption ===

# Please click on this link: [[GST#Item Tax Exemption Setup|'''GST#Item Tax Exemption Setup''']] for detail steps.

=== Default Account Codes and System General GL Setup ===
As part of the implementation, several default account codes must be set up in the '''System General GL Setup'''. Below are the key account categories and their configurations:

==== General GL Accounts: ====

# '''Retained Earnings''': Account for retaining profit from previous years.
# '''Profit/Loss Year''': Account for the current year’s profit or loss.
# '''Exchange Variance Account (Realized)''': Used to account for exchange rate differences.
# '''Bank Charges Account''': Tracks bank fees.
# '''Revaluation GL Account (Unrealized)''': Account for unrealized gains or losses from asset revaluation.

==== Customers and Sales: ====

# '''Default Credit Limit''': (Default set to $1,000).
# '''Accumulate Batch Shipping''': Option to accumulate multiple delivery shipping costs into a single invoice.
# '''Legal Text on Invoice''': Custom text that appears at the bottom of invoices.
# '''Shipping Charge Account''': GL account for shipping charges.

==== Customers and Sales Defaults (GL Account Codes): ====

# '''Receivable Account''': GL account for accounts receivable.
# '''Sales Account''': (Default is set to “Use Item Sales Accounts”). Follows the GL account set at the product item level.
# '''Sales Discount Account''': Account for discounts given to customers.
# '''Prompt Payment Discount Account''': GL account for discounts given to customers who pay early (optional).
# '''Quote Valid Days''': Default validity period for sales quotations.
# '''Delivery Required By''': Default delivery date for products (can be modified per Sales Order).

==== Dimension Defaults: ====

# '''Dimension Required By After''': Dimensions Required By is a configuration setting that defines the number of days after which a dimension (such as a project, department, or cost center) is considered overdue or past its target date.

==== Suppliers and Purchasing: ====

# '''Delivery Over-Receive Allowance''': Percentage tolerance for over-receiving delivered quantities.
# '''Invoice Over-Charge Allowance''': Percentage tolerance for processing an invoice if the variance is within limits.

==== Suppliers and Purchasing Defaults: ====

# '''Payable Account''': GL account for accounts payable.
# '''Purchase Discount Account''': Account for purchase discounts received.
# '''GRN Clearing Account''': Default setting is "No postings on GRN." If a GL posting for goods received is desired, select a GL account from the dropdown menu.
# '''Inventory Negative Inventory Allowed?''': If checked, the system allows shipment even when stock is unavailable, resulting in negative inventory.
## '''Important''': Once this setting is enabled, it cannot be changed after transactions begin. Be sure that negative inventory aligns with your business operations.

==== Item Defaults: ====

# '''Sales Account''': GL account for sales revenue.
# '''Inventory Account''': Account for inventory assets.
# '''C.O.G.S./Expense Account''': Cost of Goods Sold (COGS) or expense account.
# '''Inventory Adjustments Account''': Account for adjustments to inventory.
# '''Item Assembly Costs Account''': Related to manufacturing costs.

==== Manufacturing Defaults: ====

# '''Work Order Required By After''': (Default is 20 days). If the Manufacturing Module is not implemented, leave the setting as default.

[[#Top|Go to Top]]

=== Fiscal Years ===

# Please click on this link: [[Company Setup#Fiscal%20Year|'''Company Setup#Fiscal Year''']] for detail steps.

== '''Other Setup:''' ==

=== Payment Terms ===

# User can create their own payment terms here.
# Enter the Description of the payment terms if it is not already in the default list. E.g.: Nett 60 days.
# There are 4 types of Payment.
## '''Prepayment:''' This payment term requires the customer to make full payment '''in advance,''' that is, '''before''' goods or services are delivered, and '''before''' an invoice is issued.
### Prepayment is '''recorded first''' (e.g., as an advance payment or deposit) '''without''' a matching invoice. To do this, navigate to '''Finance Mgt → Receive Customer Payment''' and enter the payment when it is received.
### If the customer requests a Proforma Invoice, you can create one under: '''Sales Mgt → Transaction → Add New Proforma Invoice Entry'''.
### The payment is stored in the system and shown as '''Customer Credit / Advance'''.
### When the actual invoice is issued later, you can '''allocate''' the prepayment to offset the invoice amount.
### Note: The system will flag the invoice as '''Past Due''' immediately upon creation. Therefore, the prepayment should be allocated to the invoice right away.
## '''Cash:''' Payment is expected '''immediately''' upon invoicing.
### When an invoice is issued, the customer is expected to pay at once. This is not a credit sale.
### The invoice is posted '''as usual''' to Accounts Receivable.
### Once the invoice is issued, it is '''marked as fully paid''' and the transaction is considered '''closed'''.
## '''After number of days:''' This payment term allows you to define a fixed number of days after the invoice date for payment to be due.
### For example, if you enter "30", the payment will be due 30 days after the invoice date.
### Common descriptions for this term include: '''Net 30''', '''Net 45''', or '''Net 60''', depending on the number of days specified.
### The system will automatically calculate the due date based on the number of days entered.
## '''Day in following month:''' This term allows you to set a specific day of the following month as the due date, regardless of the invoice date.
### For example, if you enter "15", then all invoices issued in June will have a due date of '''15 July'''.
### If 0 is specified, this payment term will behave as "Cash" payment.
### If user specify any number of days, it will set the due date accordingly. For example, if user specify 32, then it will be dued in 1 Aug.
### This is commonly used in industries with fixed monthly billing cycles, where all payments are due on a particular date in the next month. Or, an agreed payment terms with the customer.

[[#Top|Go to Top]]

=== Shipping Service Providers ===
This section allows users to define and manage third-party shipping or courier companies used for delivery of goods.

# Add commonly used shipping providers such as DHL, FedEx, NinjaVan, etc.
# These providers can be selected when processing Sales Deliveries or creating Delivery Orders.
# Additional details like contact info, service area, and tracking link formats can be maintained for reference.

=== Dashboard Setup ===
This section allows the user to customise the main dashboard view shown after login. The dashboard is currently fixed and not all users have access to it. An AI based, 3rd party dashboard is being considered to add to the system.

# Enable or disable dashboard widgets such as sales charts, quick links, reminders, and statistics.
# Assign dashboards to different user roles for tailored access (e.g., sales, finance, warehouse).
# A well-configured dashboard helps users access relevant information quickly.

=== Reminder Setup ===

This section allows Plus and Pro users who have subscribed to the Dashboard and Reminder features to create and configure automatic reminders. Reminder messages will appear prominently on the dashboard to keep users informed and on track.

# Set reminders for important tasks such as follow-ups, unpaid invoices, delivery deadlines.
# Link reminders to customers, suppliers, documents, or general memos for better context.
# Users will receive reminder notifications directly on their dashboard.

=== Contact Categories ===
This section is for defining categories to classify your contacts.

# Helps organise contacts under meaningful groups such as "Customer" (customer), "Customer Branch" (cust_branch), or "Supplier" (supplier).
# Categories can be assigned to both customer and supplier contacts.
# Useful for filtering, reporting, and targeted communication.

== Maintenance ==

=== Void Transactions ===

# Transactions can be voided only if they have not been closed.
# To void a closed transaction, the user must first re-open it by reversing all subsequent related transactions.
# For example, if you want to void a closed delivery (one that has been delivered, invoiced, and fully paid), the system will prevent this or show a warning that the transaction cannot be found because it is closed.
# In such cases, you must first void the payments, then the invoice, and finally the delivery note, in that order.
# This reversal process applies to all types of transactions.
# Once the transaction is located, click on the pencil icon on the right of the transaction. Enter a note in the Memo box so that you know why this transaction is voided. You can state something like: "Duplicate entry", "Incorrect item" etc.

=== Attach Documents ===

# Users can attach one or more documents to any transaction. Supported file types include technical drawings (PDF or images), Excel spreadsheets, Word documents, and others.
# To attach a document to a transaction, such as a Sales Invoice, you need to know the transaction number (the system’s internal number, e.g., 556, 557), not the transaction reference (e.g., INV-00001).
# Select the transaction type, for example, "Sales Order."
# Enter the transaction number (remember, this is not the transaction reference).
# Enter a description for the attachment, e.g., "Drawing 12345."
# Click "Choose file" and select the file you want to attach. Only one file can be attached at a time.
# Click "Add New" to upload the file.
# '''Note:''' Attached files are stored in their original format in the user’s system home directory, not in the database. The database stores only the link to the file. This design reduces database load and improves system performance.
# To view attached files, open the transaction in "View" mode (see Fig 1 below). A link to each attached file appears at the bottom of the screen.
# Clicking the link opens the file. For image or PDF files, Chrome browser will display them directly without launching external applications. For Excel files, the system will launch Microsoft Excel or LibreOffice Calc, depending on what is installed.
[[File:Attach file.png|none|thumb|800x800px|Fig 1: The file attachment link shown at the bottom of the transaction view screen.]]

=== Backup and Restore ===

# '''Backup:'''
## Navigate to '''System Setup > Maintenance > Backup and Restore'''.
## Click on the button '''"Create Backup - Click Only Once"'''. Do not click the button again while the backup is in progress.
## Once the backup is complete, a green message will appear at the top of the screen: Backup successfully generated. Filename: XXXXXXXX_20250623_161649.sql The digits represent the date and time in the format: '''DDMMYYYY_HHMMSS.sql'''.
# '''Restore:'''
## Select the desired backup file.
## Click on the '''Restore''' button.
'''Note:''' Once restored, all current data will be overwritten. This action is not reversible unless you have previously performed a backup.

Extraction and Packaging of Invoice Data

2026-08-06T05:27:39Z

Khkoh: /* Extraction and Packaging of Invoice Data */

__FORCETOC__

==Extraction and Packaging of Invoice Data==

=== Invoice Data Preparation ===
# All invoice data (sales and purchase) are prepared in the Highnix ERP system under the '''Sales Management''' and '''Purchasing Management''' modules, respectively. Each module has its own '''Invoice Preparation User Interface (UI)'''. (See Fig 1)
# Once the sales or purchase invoice is prepared, the user will be prompted with the next steps, along with multiple options. (See Fig 2) Currently, two formats are available for sending invoices to the InvoiceNow network via Banqup's Access Point:
## '''PINT'''
## '''BIS'''
# Each format offers the following three sending options:
## '''Send Sales Invoice Only via Peppol''': This option allows the user to send invoices to the customer only.
## '''Send Sales Invoice to Customer and C5 (IRAS) via Peppol''': This option enables the user to send the invoice through the InvoiceNow network to both the customer and C5.
## '''Send Sales Invoice to IRAS Only via Peppol''': This option applies when the recipient of the invoice does not have a Peppol account. The GST-registered entity (user) is responsible for sending a copy of the invoice to C5 via the Peppol network. When this option is selected, the invoice is first uploaded to the Access Point (AP) and then sent to C5 only.

=== Extraction and Packaging ===
# Highnix users do not have direct access to raw invoice data or XML file formats within the Highnix system for packaging and submission to C5. This is because invoice data is processed and converted in the Banqup system. However, users can generate a list of invoices and credit notes via the Highnix analytic report module under the '''C5 Reports Option'''.
# Users can also request the Highnix support team to retrieve XML files from Banqup on their behalf. As this involves additional administrative work, the service is chargeable.
# A sample of the XML file sent to the InvoiceNow network is shown in Fig 3. This is unnecessary for user to see it. However, if user likes to obtain a copy, they can send the request. 

[[File:C5 invoice UI.png|thumb|800x800px|Fig 1. User Interface of Invoice Preparation.|border|none]]
[[File:Sending Action.png|none|thumb|800x800px|Fig 2]]
[[File:C5 xml sample.png|thumb|800x800px|Fig 3|none]]Go to next topic: [[Invoice Data Submission through APs]]

File:Sending Action.png

2026-08-06T05:24:07Z

Khkoh:

Sending Action

Gross Margin Scheme

2026-07-27T10:43:28Z

Khkoh: /* Purchasing Goods */

__FORCETOC__

Reference: https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/general-gst-schemes/gross-margin-scheme?utm_source=chatgpt.com

= IRAS Gross Margin Scheme (GMS) =

== Overview ==

# The '''Gross Margin Scheme (GMS)''' is a special GST scheme administered by the Inland Revenue Authority of Singapore (IRAS). It allows eligible businesses dealing in second-hand goods, motor vehicles, and certain qualifying products to account for GST only on the '''gross margin''' (selling price less purchase price), instead of on the full selling price.
# Under this scheme, GST is calculated only when the selling price exceeds the purchase price. If the selling price is equal to or lower than the purchase price, no GST is payable on that transaction.
# For detailed eligibility requirements and operating rules, please refer to the official IRAS webpage:
# '''Gross Margin Scheme (GMS)''' [https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/general-gst-schemes/gross-margin-scheme?utm_source=chatgpt.com https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/general-gst-schemes/gross-margin-scheme]
----

= Highnix Setup =
Before processing transactions under the Gross Margin Scheme, the following setup is required.

== Create a GST Tax Type ==
Create a GST tax type for GMS.

'''Suggested setup'''
{| class="wikitable"
!Field
!Value
|-
|Tax Type
|'''NA-GSM'''
|-
|GST Rate
|'''9.0%'''
|-
|Sales GL Account
|'''2253 Output GST-NA'''
|}
'''Note'''

The prefix '''"NA"''' is recommended because GST is '''not displayed on customer invoices''' under the Gross Margin Scheme. The GST is computed internally and posted into the GST Output account (GL Account 2253).
----

== Create a Sales Tax Group ==

# Create a sales tax group.
## '''Suggested name'''
## '''Sales Tax-GMS-NA'''
## '''Include Shipping:''' '''No''' '''('''Shipping charges are not part of the Gross Margin Scheme calculation.)
----

== Create a Purchase Tax Group (Optional) ==

# If your business also purchases goods from suppliers using the Gross Margin Scheme, you may create a purchase tax group.
## '''Suggested name'''
## '''Purch Tax-GMS-NA:''' This setup is optional and depends on your business requirements.
----

== Create an Item Tax Type ==

# Under '''Item Tax Exemption''', create a new item tax type.
# Example:
## '''GMS-Gross Margin Scheme - 9%'''
# Configure this item tax type so that it is '''exempt from every GST tax type except the GMS tax type (NA-GSM)''' created earlier. This ensures that GMS items cannot accidentally be taxed using the normal GST calculation.
----

== Configure Inventory Items ==

# For every inventory item that will be sold under the Gross Margin Scheme:
## Open the Inventory Item setup.
## Set the '''Item Tax Type''' to:
### '''GMS-Gross Margin Scheme - 9%'''
----

== Configure Customers ==

# Customers purchasing goods under the Gross Margin Scheme should use the GMS Sales Tax Group.
# Example:
## '''Sales Tax Group'''
## '''Sales Tax-GMS-NA'''
----

= Purchasing Goods =

# When receiving or purchasing goods under the Gross Margin Scheme, users '''must enter the Serial Number or Batch Number''' for each qualifying item.
# The system uses this information to identify the original purchase cost when the item is subsequently sold.<blockquote>'''Important:''' Each Serial Number or Batch Number should uniquely identify the purchased item. Accurate entry is essential because the GST calculation is based on the purchase price of that specific item.</blockquote>
----

= Sales Processing =

# After the initial setup is completed, users simply process purchase and sales transactions as normal.
# No additional GST calculation is required during invoicing.
# The system automatically:
## Retrieves the original purchase cost using the Serial Number or Batch Number.
## Calculates the gross margin.
## Computes the GST payable on the gross margin only.
## Records the GST into the configured GST Output GL account.
## Includes the transaction in the GST reporting.
# Customer invoices continue to be printed without displaying GST separately, in accordance with the Gross Margin Scheme requirements.

----

= GST Reporting =

# All Gross Margin Scheme transactions are automatically included in the GST reporting process.
# When the GST Tax Report is generated, GMS transactions will appear under the configured GMS tax type together with the GST amount calculated by the system.
# No manual adjustment is required.

----

= Important Notes =

# Gross Margin Scheme items must not be mixed with normal GST-taxable items within the same invoice.
# Every GMS item must have a valid Serial Number or Batch Number recorded during purchase.
# The purchase price used for GST computation is taken from the original purchase transaction of the corresponding Serial Number or Batch Number.
# If the selling price is less than or equal to the purchase price, no GST is payable for that item.
# Shipping charges are excluded from the Gross Margin Scheme calculation.

Gross Margin Scheme

2026-07-27T10:37:47Z

Khkoh: /* Purchasing Goods */

__FORCETOC__

Reference: https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/general-gst-schemes/gross-margin-scheme?utm_source=chatgpt.com

= IRAS Gross Margin Scheme (GMS) =

== Overview ==
The '''Gross Margin Scheme (GMS)''' is a special GST scheme administered by the Inland Revenue Authority of Singapore (IRAS). It allows eligible businesses dealing in second-hand goods, motor vehicles, and certain qualifying products to account for GST only on the '''gross margin''' (selling price less purchase price), instead of on the full selling price.

Under this scheme, GST is calculated only when the selling price exceeds the purchase price. If the selling price is equal to or lower than the purchase price, no GST is payable on that transaction.

For detailed eligibility requirements and operating rules, please refer to the official IRAS webpage:

'''Gross Margin Scheme (GMS)''' [https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/general-gst-schemes/gross-margin-scheme?utm_source=chatgpt.com https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/general-gst-schemes/gross-margin-scheme]
----

= Highnix Setup =
Before processing transactions under the Gross Margin Scheme, the following setup is required.

== Create a GST Tax Type ==
Create a GST tax type for GMS.

'''Suggested setup'''
{| class="wikitable"
!Field
!Value
|-
|Tax Type
|'''NA-GSM'''
|-
|GST Rate
|'''9.0%'''
|-
|Sales GL Account
|'''2253 Output GST-NA'''
|}
'''Note'''

The prefix '''"NA"''' is recommended because GST is '''not displayed on customer invoices''' under the Gross Margin Scheme. The GST is computed internally and posted into the GST Output account (GL Account 2253).
----

== Create a Sales Tax Group ==
Create a sales tax group.

'''Suggested name'''

'''Sales Tax-GMS-NA'''

'''Include Shipping:''' '''No''' '''('''Shipping charges are not part of the Gross Margin Scheme calculation.)
----

== Create a Purchase Tax Group (Optional) ==
If your business also purchases goods from suppliers using the Gross Margin Scheme, you may create a purchase tax group.

'''Suggested name'''

'''Purch Tax-GMS-NA:''' This setup is optional and depends on your business requirements.
----

== Create an Item Tax Type ==
Under '''Item Tax Exemption''', create a new item tax type.

Example:

'''GMS-Gross Margin Scheme - 9%'''

Configure this item tax type so that it is '''exempt from every GST tax type except the GMS tax type (NA-GSM)''' created earlier. This ensures that GMS items cannot accidentally be taxed using the normal GST calculation.
----

== Configure Inventory Items ==
For every inventory item that will be sold under the Gross Margin Scheme:

* Open the Inventory Item setup.
* Set the '''Item Tax Type''' to:

'''GMS-Gross Margin Scheme - 9%'''
----

== Configure Customers ==
Customers purchasing goods under the Gross Margin Scheme should use the GMS Sales Tax Group.

Example:

'''Sales Tax Group'''

'''Sales Tax-GMS-NA'''
----

== Purchasing Goods ==
When receiving or purchasing goods under the Gross Margin Scheme, users '''must enter the Serial Number or Batch Number''' for each qualifying item.

The system uses this information to identify the original purchase cost when the item is subsequently sold.<blockquote>'''Important:''' Each Serial Number or Batch Number should uniquely identify the purchased item. Accurate entry is essential because the GST calculation is based on the purchase price of that specific item.</blockquote>
----

== Sales Processing ==
After the initial setup is completed, users simply process purchase and sales transactions as normal.

No additional GST calculation is required during invoicing.

The system automatically:

* Retrieves the original purchase cost using the Serial Number or Batch Number.
* Calculates the gross margin.
* Computes the GST payable on the gross margin only.
* Records the GST into the configured GST Output GL account.
* Includes the transaction in the GST reporting.

Customer invoices continue to be printed without displaying GST separately, in accordance with the Gross Margin Scheme requirements.
----

== GST Reporting ==
All Gross Margin Scheme transactions are automatically included in the GST reporting process.

When the GST Tax Report is generated, GMS transactions will appear under the configured GMS tax type together with the GST amount calculated by the system.

No manual adjustment is required.
----

== Important Notes ==
* Gross Margin Scheme items must not be mixed with normal GST-taxable items within the same invoice.
* Every GMS item must have a valid Serial Number or Batch Number recorded during purchase.
* The purchase price used for GST computation is taken from the original purchase transaction of the corresponding Serial Number or Batch Number.
* If the selling price is less than or equal to the purchase price, no GST is payable for that item.
* Shipping charges are excluded from the Gross Margin Scheme calculation.

Gross Margin Scheme

2026-07-27T10:37:19Z

Khkoh:

__FORCETOC__

Reference: https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/general-gst-schemes/gross-margin-scheme?utm_source=chatgpt.com

= IRAS Gross Margin Scheme (GMS) =

== Overview ==
The '''Gross Margin Scheme (GMS)''' is a special GST scheme administered by the Inland Revenue Authority of Singapore (IRAS). It allows eligible businesses dealing in second-hand goods, motor vehicles, and certain qualifying products to account for GST only on the '''gross margin''' (selling price less purchase price), instead of on the full selling price.

Under this scheme, GST is calculated only when the selling price exceeds the purchase price. If the selling price is equal to or lower than the purchase price, no GST is payable on that transaction.

For detailed eligibility requirements and operating rules, please refer to the official IRAS webpage:

'''Gross Margin Scheme (GMS)''' [https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/general-gst-schemes/gross-margin-scheme?utm_source=chatgpt.com https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/general-gst-schemes/gross-margin-scheme]
----

= Highnix Setup =
Before processing transactions under the Gross Margin Scheme, the following setup is required.

== Create a GST Tax Type ==
Create a GST tax type for GMS.

'''Suggested setup'''
{| class="wikitable"
!Field
!Value
|-
|Tax Type
|'''NA-GSM'''
|-
|GST Rate
|'''9.0%'''
|-
|Sales GL Account
|'''2253 Output GST-NA'''
|}
'''Note'''

The prefix '''"NA"''' is recommended because GST is '''not displayed on customer invoices''' under the Gross Margin Scheme. The GST is computed internally and posted into the GST Output account (GL Account 2253).
----

== Create a Sales Tax Group ==
Create a sales tax group.

'''Suggested name'''

'''Sales Tax-GMS-NA'''

'''Include Shipping:''' '''No''' '''('''Shipping charges are not part of the Gross Margin Scheme calculation.)
----

== Create a Purchase Tax Group (Optional) ==
If your business also purchases goods from suppliers using the Gross Margin Scheme, you may create a purchase tax group.

'''Suggested name'''

'''Purch Tax-GMS-NA:''' This setup is optional and depends on your business requirements.
----

== Create an Item Tax Type ==
Under '''Item Tax Exemption''', create a new item tax type.

Example:

'''GMS-Gross Margin Scheme - 9%'''

Configure this item tax type so that it is '''exempt from every GST tax type except the GMS tax type (NA-GSM)''' created earlier. This ensures that GMS items cannot accidentally be taxed using the normal GST calculation.
----

== Configure Inventory Items ==
For every inventory item that will be sold under the Gross Margin Scheme:

* Open the Inventory Item setup.
* Set the '''Item Tax Type''' to:

'''GMS-Gross Margin Scheme - 9%'''
----

== Configure Customers ==
Customers purchasing goods under the Gross Margin Scheme should use the GMS Sales Tax Group.

Example:

'''Sales Tax Group'''

'''Sales Tax-GMS-NA'''
----

= Purchasing Goods =
When receiving or purchasing goods under the Gross Margin Scheme, users '''must enter the Serial Number or Batch Number''' for each qualifying item.

The system uses this information to identify the original purchase cost when the item is subsequently sold.<blockquote>'''Important:''' Each Serial Number or Batch Number should uniquely identify the purchased item. Accurate entry is essential because the GST calculation is based on the purchase price of that specific item.</blockquote>
----

== Sales Processing ==
After the initial setup is completed, users simply process purchase and sales transactions as normal.

No additional GST calculation is required during invoicing.

The system automatically:

* Retrieves the original purchase cost using the Serial Number or Batch Number.
* Calculates the gross margin.
* Computes the GST payable on the gross margin only.
* Records the GST into the configured GST Output GL account.
* Includes the transaction in the GST reporting.

Customer invoices continue to be printed without displaying GST separately, in accordance with the Gross Margin Scheme requirements.
----

== GST Reporting ==
All Gross Margin Scheme transactions are automatically included in the GST reporting process.

When the GST Tax Report is generated, GMS transactions will appear under the configured GMS tax type together with the GST amount calculated by the system.

No manual adjustment is required.
----

== Important Notes ==
* Gross Margin Scheme items must not be mixed with normal GST-taxable items within the same invoice.
* Every GMS item must have a valid Serial Number or Batch Number recorded during purchase.
* The purchase price used for GST computation is taken from the original purchase transaction of the corresponding Serial Number or Batch Number.
* If the selling price is less than or equal to the purchase price, no GST is payable for that item.
* Shipping charges are excluded from the Gross Margin Scheme calculation.

Gross Margin Scheme

2026-07-27T10:31:51Z

Khkoh: /* IRAS Gross Margin Scheme (GMS) */

__FORCETOC__

Reference: https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/general-gst-schemes/gross-margin-scheme?utm_source=chatgpt.com

= IRAS Gross Margin Scheme (GMS) =

== Overview ==
The '''Gross Margin Scheme (GMS)''' is a special GST scheme administered by the Inland Revenue Authority of Singapore (IRAS). It allows eligible businesses dealing in second-hand goods, motor vehicles, and certain qualifying products to account for GST only on the '''gross margin''' (selling price less purchase price), instead of on the full selling price.

Under this scheme, GST is calculated only when the selling price exceeds the purchase price. If the selling price is equal to or lower than the purchase price, no GST is payable on that transaction.

For detailed eligibility requirements and operating rules, please refer to the official IRAS webpage:

'''Gross Margin Scheme (GMS)'''

<nowiki>https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/general-gst-schemes/gross-margin-scheme</nowiki>
----

= Highnix Setup =
Before processing transactions under the Gross Margin Scheme, the following setup is required.

== Create a GST Tax Type ==
Create a GST tax type for GMS.

'''Suggested setup'''
{| class="wikitable"
!Field
!Value
|-
|Tax Type
|'''NA-GSM'''
|-
|GST Rate
|'''9.0%'''
|-
|Sales GL Account
|'''2253 Output GST-NA'''
|}
'''Note'''

The prefix '''"NA"''' is recommended because GST is '''not displayed on customer invoices''' under the Gross Margin Scheme. The GST is computed internally and posted into the GST Output account (GL Account 2253).
----

== Create a Sales Tax Group ==
Create a sales tax group.

'''Suggested name'''

'''Sales Tax-GMS-NA'''

'''Include Shipping'''

'''No'''

Shipping charges are not part of the Gross Margin Scheme calculation.
----

== Create a Purchase Tax Group (Optional) ==
If your business also purchases goods from suppliers using the Gross Margin Scheme, you may create a purchase tax group.

'''Suggested name'''

'''Purch Tax-GMS-NA'''

This setup is optional and depends on your business requirements.
----

== Create an Item Tax Type ==
Under '''Item Tax Exemption''', create a new item tax type.

Example:

'''GMS-Gross Margin Scheme - 9%'''

Configure this item tax type so that it is '''exempt from every GST tax type except the GMS tax type (NA-GSM)''' created earlier.

This ensures that GMS items cannot accidentally be taxed using the normal GST calculation.
----

== Configure Inventory Items ==
For every inventory item that will be sold under the Gross Margin Scheme:

* Open the Inventory Item setup.
* Set the '''Item Tax Type''' to:

'''GMS-Gross Margin Scheme - 9%'''
----

== Configure Customers ==
Customers purchasing goods under the Gross Margin Scheme should use the GMS Sales Tax Group.

Example:

'''Sales Tax Group'''

'''Sales Tax-GMS-NA'''
----

= Purchasing Goods =
When receiving or purchasing goods under the Gross Margin Scheme, users '''must enter the Serial Number or Batch Number''' for each qualifying item.

The system uses this information to identify the original purchase cost when the item is subsequently sold.<blockquote>'''Important'''

Each Serial Number or Batch Number should uniquely identify the purchased item. Accurate entry is essential because the GST calculation is based on the purchase price of that specific item.</blockquote>
----

= Sales Processing =
After the initial setup is completed, users simply process purchase and sales transactions as normal.

No additional GST calculation is required during invoicing.

The system automatically:

* Retrieves the original purchase cost using the Serial Number or Batch Number.
* Calculates the gross margin.
* Computes the GST payable on the gross margin only.
* Records the GST into the configured GST Output GL account.
* Includes the transaction in the GST reporting.

Customer invoices continue to be printed without displaying GST separately, in accordance with the Gross Margin Scheme requirements.
----

= GST Reporting =
All Gross Margin Scheme transactions are automatically included in the GST reporting process.

When the GST Tax Report is generated, GMS transactions will appear under the configured GMS tax type together with the GST amount calculated by the system.

No manual adjustment is required.
----

= Important Notes =

* Gross Margin Scheme items must not be mixed with normal GST-taxable items within the same invoice.
* Every GMS item must have a valid Serial Number or Batch Number recorded during purchase.
* The purchase price used for GST computation is taken from the original purchase transaction of the corresponding Serial Number or Batch Number.
* If the selling price is less than or equal to the purchase price, no GST is payable for that item.
* Shipping charges are excluded from the Gross Margin Scheme calculation.

Gross Margin Scheme

2026-07-27T10:30:49Z

Khkoh:

__FORCETOC__

Reference: https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/general-gst-schemes/gross-margin-scheme?utm_source=chatgpt.com

= IRAS Gross Margin Scheme (GMS) =

== Overview ==
The '''Gross Margin Scheme (GMS)''' is a special GST scheme administered by the Inland Revenue Authority of Singapore (IRAS). It allows eligible businesses dealing in second-hand goods, motor vehicles, and certain qualifying products to account for GST only on the '''gross margin''' (selling price less purchase price), instead of on the full selling price.

Under this scheme, GST is calculated only when the selling price exceeds the purchase price. If the selling price is equal to or lower than the purchase price, no GST is payable on that transaction.

For detailed eligibility requirements and operating rules, please refer to the official IRAS webpage:

'''Gross Margin Scheme (GMS)'''

<nowiki>https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/general-gst-schemes/gross-margin-scheme</nowiki>
----

= Highnix Setup =
Before processing transactions under the Gross Margin Scheme, the following setup is required.

== 1. Create a GST Tax Type ==
Create a GST tax type for GMS.

'''Suggested setup'''
{| class="wikitable"
!Field
!Value
|-
|Tax Type
|'''NA-GSM'''
|-
|GST Rate
|'''9.0%'''
|-
|Sales GL Account
|'''2253 Output GST-NA'''
|}
'''Note'''

The prefix '''"NA"''' is recommended because GST is '''not displayed on customer invoices''' under the Gross Margin Scheme. The GST is computed internally and posted into the GST Output account (GL Account 2253).
----

== 2. Create a Sales Tax Group ==
Create a sales tax group.

'''Suggested name'''

'''Sales Tax-GMS-NA'''

'''Include Shipping'''

'''No'''

Shipping charges are not part of the Gross Margin Scheme calculation.
----

== 3. Create a Purchase Tax Group (Optional) ==
If your business also purchases goods from suppliers using the Gross Margin Scheme, you may create a purchase tax group.

'''Suggested name'''

'''Purch Tax-GMS-NA'''

This setup is optional and depends on your business requirements.
----

== 4. Create an Item Tax Type ==
Under '''Item Tax Exemption''', create a new item tax type.

Example:

'''GMS-Gross Margin Scheme - 9%'''

Configure this item tax type so that it is '''exempt from every GST tax type except the GMS tax type (NA-GSM)''' created earlier.

This ensures that GMS items cannot accidentally be taxed using the normal GST calculation.
----

== 5. Configure Inventory Items ==
For every inventory item that will be sold under the Gross Margin Scheme:

* Open the Inventory Item setup.
* Set the '''Item Tax Type''' to:

'''GMS-Gross Margin Scheme - 9%'''
----

== 6. Configure Customers ==
Customers purchasing goods under the Gross Margin Scheme should use the GMS Sales Tax Group.

Example:

'''Sales Tax Group'''

'''Sales Tax-GMS-NA'''
----

= Purchasing Goods =
When receiving or purchasing goods under the Gross Margin Scheme, users '''must enter the Serial Number or Batch Number''' for each qualifying item.

The system uses this information to identify the original purchase cost when the item is subsequently sold.<blockquote>'''Important'''

Each Serial Number or Batch Number should uniquely identify the purchased item. Accurate entry is essential because the GST calculation is based on the purchase price of that specific item.</blockquote>
----

= Sales Processing =
After the initial setup is completed, users simply process purchase and sales transactions as normal.

No additional GST calculation is required during invoicing.

The system automatically:

* Retrieves the original purchase cost using the Serial Number or Batch Number.
* Calculates the gross margin.
* Computes the GST payable on the gross margin only.
* Records the GST into the configured GST Output GL account.
* Includes the transaction in the GST reporting.

Customer invoices continue to be printed without displaying GST separately, in accordance with the Gross Margin Scheme requirements.
----

= GST Reporting =
All Gross Margin Scheme transactions are automatically included in the GST reporting process.

When the GST Tax Report is generated, GMS transactions will appear under the configured GMS tax type together with the GST amount calculated by the system.

No manual adjustment is required.
----

= Important Notes =

* Gross Margin Scheme items must not be mixed with normal GST-taxable items within the same invoice.
* Every GMS item must have a valid Serial Number or Batch Number recorded during purchase.
* The purchase price used for GST computation is taken from the original purchase transaction of the corresponding Serial Number or Batch Number.
* If the selling price is less than or equal to the purchase price, no GST is payable for that item.
* Shipping charges are excluded from the Gross Margin Scheme calculation.

Home (Click on Highnix Logo)

2026-07-27T10:26:55Z

Khkoh: /* Welcome to Highnix Online Support And Documentation */

== Welcome to Highnix Online Support And Documentation ==

=== Contact Support: ===
:We will get back to you within 3 working days or earlier.
:* WhatsApp: +65-8460 2283 (<nowiki>https://wa.me/6584602283</nowiki>)
:* Voice: +65-8912 8747 / +65-6214 1157
:* [https://www.highnix.com/contact-us/ Online Contact form: https://www.highnix.com/contact-us/]

=== Online Manual Table of Content: ===
'''At any page, click the Highnix logo or Home on the left to go back to the Home Page.'''

'''Subject Category:''' This is organized according to the function tabs menu. It includes useful information and tips.

__FORCETOC__
{| class="wikitable sortable mw-collapsible"

|+
!
!Subject
!Subject Category
!Topics
|-
|■
|[[About this Help]]
|
|
|-
|
|
|''Info:''
|[[How to use help|How to Use Help?]]
|-
|■
|[[General]]
|
|
|-
|
|
|''Info:''
|[[Read Me First|'''Read Me First (Must Read)''']]
|-
|
|
|
|[[Why Highnix ERP|Why Highnix ERP?]]
|-
|
|
|
|[[Read Me First#do and do not|DO and DON'T]]
|-
|
|
|
|[[General#General Form|Form]]
|-
|
|
|''Implementation''
|[[System Implementation and Deployment Preparation]]
|-
|
|
|
|[[Data Migration and Initial Setup]]
|-
|
|
|
|[[Training]]
|-
|
|
|
|Application Programming Interface (API) (Coming)
|-
|■
|[[Inventory and Product Mgt]]
|
|
|-
|
|
|''Info:''
|[[Handling the Landing Cost of Products Purchased]]
|-
|
|
|
|Batch/Expiry Date Selection
|-
|
|
|
|[[Report: Stock Check Sheets]]
|-
|
|
|''Transactions:''
|[[Inventory Location Transfers]]
|-
|
|
|''Maintenance:''
|[[Add and Edit Items]]
|-
|
|
|
|[[Kitting]]
|-
|
|
|''Pricing:''
|[[Selling Price|Selling Price (Price Book)]]
|-
|
|
|
|[[Buying Price]]
|-
|
|
|
|[[Standard Cost]]
|-
|■
|[[Sales Management]]
|
|
|-
|
|
|''Info:''
|[[Generic Sales Flow]]
|-
|
|
|
|[[Useful Tips - Sales]]
|-
|
|
|''Transactions:''
|[[Quotation]]
|-
|
|
|
|[[Sales Order]]
|-
|
|
|
|[[Sales Delivery]]
|-
|
|
|
|[[Sales Invoice]]
|-
|
|
|
|[[Late Payment Interest|Late Payment Interest Module]]
|-
|■
|Purchase Management
|
|
|-
|
|
|''info:''
|[[Purchase Credit Note]]
|-
|■
|[[Finance Management]]
|
|
|-
|
|
|''info:''
|[[Finance Management|About Finance Management]]
|-
|
|
|
|[[Foreign Currency Revaulation]]
|-
|
|
|
|[[Differences of Various Payment Types]]
|-
|
|
|
|[[Journal Inquiry]]
|-
|
|
|''Transactions:''
|[[General Receipt]]
|-
|
|
|
|[[Receive Customer Payment]]
|-
|
|
|
|[[Allocate Customer Payment or Credit Note]]
|-
|
|
|
|[[Finance Management#Fixed Asset Management|Fixed Asset Management]]
|-
|
|
|
|[[Add and Edit Currencies|Add and Edit Currency]]
|-
|
|
|
|[[Update Exchange Rates Table|Update Exchange Rates]]
|-
|
|
|''Maintenance:''
|[[Add and Edit Bank Accounts]]
|-
|■
|InvoiceNow
|''General''
|[[InvoiceNow Setup]]
|-
|
|
|
|[[Activation of GST InvoiceNow Submission for GST- Registered Businesses]]
|-
|
|
|
|[[Extraction and Packaging of Invoice Data]]
|-
|
|
|''Sending Invoices''
|[[Invoice Data Submission through APs]]
|-
|
|
|
|[[Reporting & Reconciliation]]
|-
|
|
|''Adding Customer''
|[[Add or Edit A Customer]]
|-
|
|
|
|[[Sending InvoiceNow To Customers]]
|-
|
|
|
|[[Receiving InvoiceNow from Suppliers]]
|-
|
|
|InvoiceNow-Advance Ordering
|[[InvoiceNow - Advance Ordering]]
|-
|
|
|
|[[Receiving of Customer Purchase Orders|Receiving and Processing of Customer Purchase Orders (or Sales Orders)]]
|-
|
|
|
|[[Process the Sales Order|Process the Sales Order (Accept, Reject, Accept with or without Changes)]]
|-
|
|
|
|[[Sending of Customer Purchase Order Status]]
|-
|
|
|
|[[Important Things to Take Note When Sending Invoices to Government]]
|-
|
|
|
|[[Send Invoices to Government|Sending Invoices to Government]]
|-
|
|
|
|[[Receiving Invoice Response from Customer]]
|-
|■
|Dimension Management
|
|
|-
|
|Extension Module
|
|
|-
|■
|Setup
|
|
|-
|
|
|
|[[System Setup]]
|-
|
|
|System/GL Defaults
|[[System Setup#Default Account Codes and System General GL Setup|System and General GL]]
|-
|
|
|
|Forms and Docs Reference Number
|-
|
|
|GST
|[[GST|GST Setup]]
|-
|
|
|
|[[Add GST Tax Type]]
|-
|
|
|
|[[Gross Margin Scheme|Gross Margin Scheme (GMS)]]
|-
|
|
|
|[[Sales of Vouchers]]
|-
|###
|##################
|##############
|###################################
|-
|
|API
|
|
|-
|■
|[[HR Processes with QuickHR|HRMS]]
|
|[[QuickHR Integration Settings]]
|-
|■
|FAQ / How To?
|
|
|-
|
|
|Sales
|[[How to create water mark]]?
|-
|
|
|
|[[Contra of Accounts (A customer is also a supplier)]]
|-
|
|
|
|[[Handle Leasing of Products or Equipment]]
|-
|
|
|
|[[Handle Deposits]]
|-
|
|
|Termination
|[[Cessation Of Services]]
|-
|
|
|Finance
|[[Write-Off of Uncollectible Receivables or Bad Debts]]
|-
|■
|[[Error Codes]]
|
|[[Error codes explain dolution|Error Codes Explanation and Solution]]
|}

----

Late Payment Interest

2026-07-24T05:36:52Z

Khkoh: /* Compounded Interest */

__FORCETOC__

= Late Payment Interest (LPI) Module User Guide =

== Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

= Understanding Late Payment Interest =

== What is Late Payment Interest (LPI)? ==
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

=== Statutory or By-Law Provisions ===
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

=== Contractual Agreements ===
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==

Compounded interest occurs when previously charged interest becomes part of the amount used for subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be applied when expressly agreed upon by the contractual parties and permitted under the applicable laws or regulations.

The Highnix LPI Module supports both non-compounded and compounded interest calculations.
# '''Note:''' When '''LPI on LPI''' is enabled, '''new''' Late Payment Interest (LPI) invoices generated thereafter are flagged as eligible for future LPI calculations. If such an LPI invoice remains unpaid after the applicable grace period, its outstanding amount will be included in subsequent LPI calculations, resulting in compounded interest. LPI invoices generated before '''LPI on LPI''' was enabled remain non-compounded and are not retrospectively included in future LPI calculations.
= Configuring Late Payment Interest Terms =
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days.

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

= Defining the Late Payment Interest Item =
Late Payment Interest is billed using a dedicated service item.

== Default Item ==
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

== Changing the LPI Item ==
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → Forms and Docs Reference Number'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

= Configuring Compounded Interest for a Customer =
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

= Mixing LPI with Normal Invoice Items =
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

= Recommended Practice =
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

Late Payment Interest

2026-07-24T04:07:33Z

Khkoh: /* Compounded Interest */

__FORCETOC__

= Late Payment Interest (LPI) Module User Guide =

== Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

= Understanding Late Payment Interest =

== What is Late Payment Interest (LPI)? ==
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

=== Statutory or By-Law Provisions ===
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

=== Contractual Agreements ===
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==

Compounded interest occurs when previously charged interest becomes part of the amount used for subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be applied when expressly agreed upon by the contractual parties and permitted under the applicable laws or regulations.

The Highnix LPI Module supports both non-compounded and compounded interest calculations.
# '''Note:''' When '''LPI on LPI''' is enabled, any '''new''' Late Payment Interest (LPI) invoices generated thereafter are treated as normal sales invoices for the purpose of future LPI calculations. If such an LPI invoice remains unpaid after the applicable grace period, its outstanding amount will be included in subsequent LPI calculations, resulting in compounded interest. LPI invoices generated before '''LPI on LPI''' was enabled remain non-compounded and are not retrospectively included in future LPI calculations.
= Configuring Late Payment Interest Terms =
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days.

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

= Defining the Late Payment Interest Item =
Late Payment Interest is billed using a dedicated service item.

== Default Item ==
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

== Changing the LPI Item ==
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → Forms and Docs Reference Number'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

= Configuring Compounded Interest for a Customer =
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

= Mixing LPI with Normal Invoice Items =
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

= Recommended Practice =
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

Late Payment Interest

2026-07-24T04:01:30Z

Khkoh: /* Compounded Interest */

__FORCETOC__

= Late Payment Interest (LPI) Module User Guide =

== Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

= Understanding Late Payment Interest =

== What is Late Payment Interest (LPI)? ==
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

=== Statutory or By-Law Provisions ===
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

=== Contractual Agreements ===
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==

Compounded interest occurs when previously charged interest becomes part of the amount used for subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be applied when expressly agreed upon by the contractual parties and permitted under the applicable laws or regulations.

The Highnix LPI Module supports both non-compounded and compounded interest calculations.

## '''Note:''' When '''LPI on LPI''' is enabled, the generated Late Payment Interest (LPI) invoice is treated as a normal sales invoice for the purpose of future LPI calculations. If the LPI invoice remains unpaid after the applicable grace period, the outstanding LPI amount will itself be subject to subsequent Late Payment Interest calculations, resulting in compounded interest.

= Configuring Late Payment Interest Terms =
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days.

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

= Defining the Late Payment Interest Item =
Late Payment Interest is billed using a dedicated service item.

== Default Item ==
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

== Changing the LPI Item ==
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → Forms and Docs Reference Number'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

= Configuring Compounded Interest for a Customer =
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

= Mixing LPI with Normal Invoice Items =
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

= Recommended Practice =
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

Late Payment Interest

2026-07-24T03:56:45Z

Khkoh: /* Compounded Interest */

__FORCETOC__

= Late Payment Interest (LPI) Module User Guide =

== Introduction ==
The Late Payment Interest (LPI) Module is designed to help organizations automatically calculate and bill interest on overdue customer balances.

The module is suitable for organizations that are legally or contractually entitled to charge interest on outstanding amounts, including:

* Management Corporations (MCST) in Singapore
* Management Corporations and Joint Management Bodies (JMB) in Malaysia
* Property management companies
* Service providers with contractual late payment clauses
* Any business that charges interest on overdue receivables

The module automates the calculation of Late Payment Interest (LPI) and Additional Payment Interest (API), ensuring consistent and accurate billing of overdue accounts.
----

= Understanding Late Payment Interest =

== What is Late Payment Interest (LPI)? ==
Late Payment Interest (LPI) is an interest charge imposed on overdue amounts when payment is not received within the specified grace period.

LPI may arise from:

=== Statutory or By-Law Provisions ===
Certain legislation and by-laws permit organizations to charge interest on overdue payments.

Examples include:

* Management Corporation Strata Title (MCST) entities in Singapore
* Management Corporations (MC) and Joint Management Bodies (JMB) in Malaysia

These organizations are generally permitted to impose interest on overdue maintenance fees, sinking fund contributions, and other charges when payment remains outstanding after the prescribed grace period.

=== Contractual Agreements ===
Businesses may also impose interest on overdue invoices when such charges are expressly stated in a contract, service agreement, sales agreement, or terms and conditions accepted by the customer.

Such charges are commonly referred to as:

* Late Payment Interest (LPI)
* Additional Payment Interest (API)
* Finance Charges
* Interest on Overdue Accounts

----

== Non-Compounded Interest Requirement ==
In many situations, interest is expected to be calculated on a simple (non-compounded) basis unless the parties have expressly agreed otherwise.

This means:

* Interest is calculated only on the original overdue principal amount.
* Previously charged interest is not included in subsequent interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest: Still calculated on $1,000 only.

The previous $10 interest is not included in the interest calculation.
----

== Compounded Interest ==
Compounded interest occurs when previously charged interest becomes part of the balance used for future interest calculations.

Example:

Outstanding Amount: $1,000

Month 1 Interest: $10

Month 2 Interest is calculated on $1,010 instead of $1,000.

Because compounded interest has legal and contractual implications, it should only be used when explicitly agreed upon and permitted by applicable regulations.

The Highnix LPI Module supports both methods.

'''Note: Compounded Interest will treat the invoice as normal invoice when the LPI is included. And therefore, the LPI amount will be treated as a normal invoiced item which will incur LPI if it is not settled.'''
----

= Configuring Late Payment Interest Terms =
Before generating Late Payment Interest transactions, the interest terms must be configured.

Navigate to:

'''System Setup → Late Payment Interest Terms'''

Under this setup screen, define the following:

=== Interest Rate ===
The annual interest rate to be charged on overdue balances.

Example:

* 10% per annum
* 12% per annum

=== Grace Period ===
The number of days after the invoice date during which no interest is charged.

Example:

If the grace period is 30 days, interest begins only after the invoice remains unpaid for more than 30 days.

=== Additional Grace Period ===
An optional additional period before interest calculations commence.

This allows organizations to provide further flexibility to customers before interest charges are applied.

=== Interest Calculation Basis ===
Select whether interest should be calculated:

* Daily Basis
* Monthly Basis

The form is self-explanatory and allows administrators to configure the organization's preferred interest charging policy.
----

= Defining the Late Payment Interest Item =
Late Payment Interest is billed using a dedicated service item.

== Default Item ==
Highnix provides a predefined service item:

Item Code:

'''late_pmt_interest'''

Description:

'''late_pmt_interest'''

This item is automatically available after installation.

== Changing the LPI Item ==
If a different item code or description is preferred, users may create a new service item and designate it as the official Late Payment Interest item.

Navigate to:

'''System Setup → Forms and Docs Reference Number'''

Select the desired item code from the available list and save the setting.

All future Late Payment Interest transactions will use the selected item.
----

= Configuring Compounded Interest for a Customer =
The system supports customer-specific control over compounded interest calculations.

By default:

'''LPI on LPI = No'''

This means interest is calculated using the standard non-compounded method.

== Enabling Compounded Interest ==
If a customer has contractually agreed to compounded interest, enable the setting as follows:

Navigate to:

'''Sales Management → Maintenance → Add and Edit Customer Records'''

Locate the customer profile and change:

'''LPI on LPI = Yes'''

Save the customer record.

Subsequent Late Payment Interest calculations will then include previously charged LPI amounts in future interest computations.
----

= Mixing LPI with Normal Invoice Items =
Late Payment Interest transactions are treated differently from normal sales transactions.

Because future interest calculations depend on the nature of the transaction, combining Late Payment Interest items with normal sales items may lead to incorrect interest calculations.

Therefore, the system automatically enforces the following rules:

=== Non-Compounded Interest Customers ===
When:

'''LPI on LPI = No'''

The system does not allow Late Payment Interest items to be mixed with normal sales items within the same invoice.

This ensures compliance with standard non-compounded interest principles.

=== Compounded Interest Customers ===
When:

'''LPI on LPI = Yes'''

The system permits Late Payment Interest items and normal sales items to coexist within the same transaction.

This supports customers who have expressly agreed to compounded interest arrangements.

== Examples of Late Payment Interest Calculation ==
The following examples illustrate the difference between non-compounded and compounded Late Payment Interest (LPI) calculations.

=== Example 1: Non-Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = No

Month 1

Outstanding principal: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,100 + $100 = $10,200

Month 3

Outstanding principal used for interest calculation: $10,000

Interest charged:

$10,000 × 1% = $100

Accumulated outstanding:

$10,200 + $100 = $10,300

In this example, interest is always calculated based on the original overdue amount of $10,000.

Although previous LPI charges remain unpaid, they are not included in subsequent interest calculations. This is known as non-compounded interest or simple interest.

=== Example 2: Compounded Interest ===
Assumptions:

* Outstanding invoice amount: $10,000
* Interest rate: 12% per annum
* Interest calculated monthly
* Monthly interest rate: 1%
* Customer setting: LPI on LPI = Yes

Month 1

Outstanding amount subject to interest: $10,000

Interest charged:

$10,000 × 1% = $100

Total outstanding:

$10,000 + $100 = $10,100

Month 2

Outstanding amount subject to interest: $10,100

Interest charged:

$10,100 × 1% = $101

Total outstanding:

$10,100 + $101 = $10,201

Month 3

Outstanding amount subject to interest: $10,201

Interest charged:

$10,201 × 1% = $102.01

Total outstanding:

$10,201 + $102.01 = $10,303.01

In this example, previously charged LPI becomes part of the amount used for future interest calculations. This is known as compounded interest or interest on interest.

=== Important Note ===
In many jurisdictions, Late Payment Interest is generally calculated on a non-compounded basis unless otherwise permitted by law or expressly agreed between the parties.

For this reason, Highnix defaults the customer setting "LPI on LPI" to "No". Users should only enable "LPI on LPI = Yes" when compounded interest is legally permissible and has been contractually agreed by the relevant parties.
----

= Recommended Practice =
To ensure accurate and compliant interest calculations:

# Configure the organization's LPI Terms before generating interest charges.
# Verify that the correct LPI service item has been selected.
# Use non-compounded interest unless compounded interest is legally permitted and contractually agreed.
# Enable "LPI on LPI" only for customers with documented approval for compounded interest.
# Review generated LPI transactions before posting them to customer accounts.

Following these guidelines will help ensure accurate calculation and proper management of overdue receivables using the Highnix LPI Module.

Gross Margin Scheme

2026-07-23T03:42:05Z

Khkoh:

__FORCETOC__

Reference: https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/general-gst-schemes/gross-margin-scheme?utm_source=chatgpt.com

Gross Margin Scheme

2026-07-23T03:41:50Z

Khkoh: Created page with "__FORCETOC__"

__FORCETOC__

Home (Click on Highnix Logo)

2026-07-23T03:41:29Z

Khkoh:

== Welcome to Highnix Online Support And Documentation ==

=== Contact Support: ===
:We will get back to you within 3 working days or earlier.
:* WhatsApp: +65-8460 2283 (<nowiki>https://wa.me/6584602283</nowiki>)
:* Voice: +65-8912 8747 / +65-6214 1157
:* [https://www.highnix.com/contact-us/ Online Contact form: https://www.highnix.com/contact-us/]

=== Online Manual Table of Content: ===
'''At any page, click the Highnix logo or Home on the left to go back to the Home Page.'''

'''Subject Category:''' This is organized according to the function tabs menu. It includes useful information and tips.

__FORCETOC__
{| class="wikitable sortable mw-collapsible"

|+
!
!Subject
!Subject Category
!Topics
|-
|■
|[[About this Help]]
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|-
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|''Info:''
|[[How to use help|How to Use Help?]]
|-
|■
|[[General]]
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|-
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|''Info:''
|[[Read Me First|'''Read Me First (Must Read)''']]
|-
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|[[Why Highnix ERP|Why Highnix ERP?]]
|-
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|[[Read Me First#do and do not|DO and DON'T]]
|-
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|[[General#General Form|Form]]
|-
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|''Implementation''
|[[System Implementation and Deployment Preparation]]
|-
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|[[Data Migration and Initial Setup]]
|-
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|[[Training]]
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|Application Programming Interface (API) (Coming)
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|■
|[[Inventory and Product Mgt]]
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|-
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|''Info:''
|[[Handling the Landing Cost of Products Purchased]]
|-
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|Batch/Expiry Date Selection
|-
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|[[Report: Stock Check Sheets]]
|-
|
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|''Transactions:''
|[[Inventory Location Transfers]]
|-
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|''Maintenance:''
|[[Add and Edit Items]]
|-
|
|
|
|[[Kitting]]
|-
|
|
|''Pricing:''
|[[Selling Price|Selling Price (Price Book)]]
|-
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|[[Buying Price]]
|-
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|[[Standard Cost]]
|-
|■
|[[Sales Management]]
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|-
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|''Info:''
|[[Generic Sales Flow]]
|-
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|[[Useful Tips - Sales]]
|-
|
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|''Transactions:''
|[[Quotation]]
|-
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|[[Sales Order]]
|-
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|[[Sales Delivery]]
|-
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|[[Sales Invoice]]
|-
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|[[Late Payment Interest|Late Payment Interest Module]]
|-
|■
|Purchase Management
|
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|-
|
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|''info:''
|[[Purchase Credit Note]]
|-
|■
|[[Finance Management]]
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|-
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|''info:''
|[[Finance Management|About Finance Management]]
|-
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|[[Foreign Currency Revaulation]]
|-
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|[[Differences of Various Payment Types]]
|-
|
|
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|[[Journal Inquiry]]
|-
|
|
|''Transactions:''
|[[General Receipt]]
|-
|
|
|
|[[Receive Customer Payment]]
|-
|
|
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|[[Allocate Customer Payment or Credit Note]]
|-
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|
|
|[[Finance Management#Fixed Asset Management|Fixed Asset Management]]
|-
|
|
|
|[[Add and Edit Currencies|Add and Edit Currency]]
|-
|
|
|
|[[Update Exchange Rates Table|Update Exchange Rates]]
|-
|
|
|''Maintenance:''
|[[Add and Edit Bank Accounts]]
|-
|■
|InvoiceNow
|''General''
|[[InvoiceNow Setup]]
|-
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|
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|[[Activation of GST InvoiceNow Submission for GST- Registered Businesses]]
|-
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|[[Extraction and Packaging of Invoice Data]]
|-
|
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|''Sending Invoices''
|[[Invoice Data Submission through APs]]
|-
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|[[Reporting & Reconciliation]]
|-
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|''Adding Customer''
|[[Add or Edit A Customer]]
|-
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|[[Sending InvoiceNow To Customers]]
|-
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|
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|[[Receiving InvoiceNow from Suppliers]]
|-
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|InvoiceNow-Advance Ordering
|[[InvoiceNow - Advance Ordering]]
|-
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|[[Receiving of Customer Purchase Orders|Receiving and Processing of Customer Purchase Orders (or Sales Orders)]]
|-
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|[[Process the Sales Order|Process the Sales Order (Accept, Reject, Accept with or without Changes)]]
|-
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|[[Sending of Customer Purchase Order Status]]
|-
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|[[Important Things to Take Note When Sending Invoices to Government]]
|-
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|[[Send Invoices to Government|Sending Invoices to Government]]
|-
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|[[Receiving Invoice Response from Customer]]
|-
|■
|Dimension Management
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|-
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|Extension Module
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|-
|■
|Setup
|
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|-
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|[[System Setup]]
|-
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|System/GL Defaults
|[[System Setup#Default Account Codes and System General GL Setup|System and General GL]]
|-
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|Forms and Docs Reference Number
|-
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|GST
|[[GST|GST Setup]]
|-
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|[[Add GST Tax Type]]
|-
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|[[Gross Margin Scheme]]
|-
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|[[Sales of Vouchers]]
|-
|###
|##################
|##############
|###################################
|-
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|API
|
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|-
|■
|[[HR Processes with QuickHR|HRMS]]
|
|[[QuickHR Integration Settings]]
|-
|■
|FAQ / How To?
|
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|-
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|Sales
|[[How to create water mark]]?
|-
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|[[Contra of Accounts (A customer is also a supplier)]]
|-
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|[[Handle Leasing of Products or Equipment]]
|-
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|
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|[[Handle Deposits]]
|-
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|Termination
|[[Cessation Of Services]]
|-
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|Finance
|[[Write-Off of Uncollectible Receivables or Bad Debts]]
|-
|■
|[[Error Codes]]
|
|[[Error codes explain dolution|Error Codes Explanation and Solution]]
|}

----

Activation of GST InvoiceNow Submission for GST- Registered Businesses

2026-07-17T08:38:47Z

Khkoh: /* Activating or Deactivating GST InvoiceNow Submission */

__FORCETOC__

__FORCETOC__

=='''Registering and Activating GST InvoiceNow Submission'''==

This section explains how to register your business with Peppol and activate GST InvoiceNow Submission for GST reporting.

=== Registering a Peppol Account ===

Before you can activate GST InvoiceNow Submission, your business must have a valid Peppol ID.

# Verify whether your business is already registered with Peppol using one of the following methods:
## Visit the [https://www.highnix.com Highnix website] and navigate to the [https://www.peppoldirectory.sg/ Peppol ID Directory - SG Companies].
## Alternatively, access the Peppol directory directly at https://www.peppoldirectory.sg/.
# Search for your business name.
## If your business appears in the search results, your Peppol ID has already been registered. You may proceed to the activation section below.
## If your business does not appear, you will need to register for a Peppol ID.
# To register a Peppol ID:
## Go to the '''[https://www.highnix.com/peppol-einvoice-id-registration/ InvoiceNow Registration Form]''' on the Highnix website.
## Complete the registration form. Fields marked with an asterisk (*) are mandatory.
## Complete the security verification and click the '''SEND''' button.
## Highnix will process your registration request and notify you once your Peppol ID has been created.

=== Activating or Deactivating GST InvoiceNow Submission ===

# After your Peppol ID has been created, navigate to '''Sales Mgt → Peppol-Sales → GST InvoiceNow Activation'''.
# The page displays the '''Current GST InvoiceNow Status'''.
## '''DEACTIVATED''' – Your business has not yet been activated for GST InvoiceNow Submission.
## '''ACTIVATED''' – Your business is already activated for GST InvoiceNow Submission.
# If the current status is '''DEACTIVATED''' (Fig 1), click '''Activate GST InvoiceNow''' to begin the activation process.
# The system will submit the activation request and perform the necessary background processing. This usually takes only 1 to 2 seconds.
# When the request has been successfully submitted, the '''Complete GST InvoiceNow KYC''' button will be displayed (Fig 2).
# Click '''Complete GST InvoiceNow KYC'''. You will be redirected to the GST InvoiceNow activation page, where the Corppass authentication screen will be displayed.
# KYC (Know Your Customer) is the identity verification process required before GST InvoiceNow Submission can be activated.
# The company's authorised personnel must complete the authentication using one of the following methods:
## Scan the QR code using the Singpass Mobile App (Fig 3 and Fig 4), or
## Sign in using the Corppass login credentials.
# After the KYC process has been completed successfully (Fig 5), you may receive a confirmation email indicating that GST InvoiceNow Submission has been activated.
# Return to the '''GST InvoiceNow Activation''' page and refresh the screen.
## A new entry will appear in the activity log (Fig 6), showing that the activation request has been submitted with the note '''"Activation request initiated"'''.
## Once the activation process has been completed successfully, the '''Current GST InvoiceNow Status''' will change to '''ACTIVATED'''.
# When the status is '''ACTIVATED''', the '''Activate GST InvoiceNow''' button will no longer be displayed. Instead, the '''Deactivate GST InvoiceNow''' button will be available.
# To deactivate GST InvoiceNow Submission, click '''Deactivate GST InvoiceNow''' and follow the same authentication and KYC process described above.
[[File:GSTInvNowActivation.png|none|thumb|800x800px|Fig 1. GST InvoiceNow Activation page showing the current status as '''DEACTIVATED'''.]]

[[File:Fig2-C5 Activate.png|none|thumb|800x800px|Fig 2. The '''Complete GST InvoiceNow KYC''' button appears after the activation request has been submitted.]]

[[File:Fig3-gst inv Now corppass.png|none|thumb|800x800px|Fig 3. Corppass authentication page.]]

[[File:Qr code gstinvnow.png|none|thumb|800x800px|Fig 4. Authenticate by scanning the QR code using the Singpass Mobile App.]]

[[File:Fig5.png|none|thumb|800x800px|Fig 5. Alternatively, authenticate by signing in with your Corppass credentials.]]

[[File:260717-Fig6.png|none|thumb|800x800px|Fig 6. Activity log showing the activation request and the updated GST InvoiceNow status.]]

----
Go to the next topic: [[Extraction and Packaging of Invoice Data]]
```

Activation of GST InvoiceNow Submission for GST- Registered Businesses

2026-07-17T08:35:45Z

Khkoh: /* Activation of GST InvoiceNow Submission - Register Business */

__FORCETOC__

__FORCETOC__

=='''Registering and Activating GST InvoiceNow Submission'''==

This section explains how to register your business with Peppol and activate GST InvoiceNow Submission for GST reporting.

=== Registering a Peppol Account ===

Before you can activate GST InvoiceNow Submission, your business must have a valid Peppol ID.

# Verify whether your business is already registered with Peppol using one of the following methods:
## Visit the [https://www.highnix.com Highnix website] and navigate to the [https://www.peppoldirectory.sg/ Peppol ID Directory - SG Companies].
## Alternatively, access the Peppol directory directly at https://www.peppoldirectory.sg/.
# Search for your business name.
## If your business appears in the search results, your Peppol ID has already been registered. You may proceed to the activation section below.
## If your business does not appear, you will need to register for a Peppol ID.
# To register a Peppol ID:
## Go to the '''[https://www.highnix.com/peppol-einvoice-id-registration/ InvoiceNow Registration Form]''' on the Highnix website.
## Complete the registration form. Fields marked with an asterisk (*) are mandatory.
## Complete the security verification and click the '''SEND''' button.
## Highnix will process your registration request and notify you once your Peppol ID has been created.

=== Activating or Deactivating GST InvoiceNow Submission ===

# After your Peppol ID has been created, navigate to '''Sales Mgt → Peppol-Sales → GST InvoiceNow Activation'''.
# The page displays the '''Current GST InvoiceNow Status'''.
## '''DEACTIVATED''' – Your business has not yet been activated for GST InvoiceNow Submission.
## '''ACTIVATED''' – Your business is already activated for GST InvoiceNow Submission.
# If the current status is '''DEACTIVATED''' (Fig 1), click '''Activate GST InvoiceNow''' to begin the activation process.
# The system will submit the activation request and perform the necessary background processing. This usually takes only 1 to 2 seconds.
# When the request has been successfully submitted, the '''Complete GST InvoiceNow KYC''' button will be displayed (Fig 2).
# Click '''Complete GST InvoiceNow KYC'''. You will be redirected to the GST InvoiceNow activation page, where the Corppass authentication screen will be displayed.
# KYC (Know Your Customer) is the identity verification process required before GST InvoiceNow Submission can be activated.
# The company's authorised personnel must complete the authentication using one of the following methods:
## Scan the QR code using the Singpass Mobile App (Fig 3 and Fig 4), or
## Sign in using the Corppass login credentials (Fig 5).
# After the KYC process has been completed successfully, you may receive a confirmation email indicating that GST InvoiceNow Submission has been activated.
# Return to the '''GST InvoiceNow Activation''' page and refresh the screen.
## A new entry will appear in the activity log (Fig 6), showing that the activation request has been submitted with the note '''"Activation request initiated"'''.
## Once the activation process has been completed successfully, the '''Current GST InvoiceNow Status''' will change to '''ACTIVATED'''.
# When the status is '''ACTIVATED''', the '''Activate GST InvoiceNow''' button will no longer be displayed. Instead, the '''Deactivate GST InvoiceNow''' button will be available.
# To deactivate GST InvoiceNow Submission, click '''Deactivate GST InvoiceNow''' and follow the same authentication and KYC process described above.

[[File:GSTInvNowActivation.png|none|thumb|800x800px|Fig 1. GST InvoiceNow Activation page showing the current status as '''DEACTIVATED'''.]]

[[File:Fig2-C5 Activate.png|none|thumb|800x800px|Fig 2. The '''Complete GST InvoiceNow KYC''' button appears after the activation request has been submitted.]]

[[File:Fig3-gst inv Now corppass.png|none|thumb|800x800px|Fig 3. Corppass authentication page.]]

[[File:Qr code gstinvnow.png|none|thumb|800x800px|Fig 4. Authenticate by scanning the QR code using the Singpass Mobile App.]]

[[File:Fig5.png|none|thumb|800x800px|Fig 5. Alternatively, authenticate by signing in with your Corppass credentials.]]

[[File:260717-Fig6.png|none|thumb|800x800px|Fig 6. Activity log showing the activation request and the updated GST InvoiceNow status.]]

----
Go to the next topic: [[Extraction and Packaging of Invoice Data]]
```

Activation of GST InvoiceNow Submission for GST- Registered Businesses

2026-07-17T08:31:40Z

Khkoh: /* Activation of GST InvoiceNow Submission for GST */

__FORCETOC__

=='''Activation of GST InvoiceNow Submission - Register Business'''==
This section provides users with essential steps to register and activate GST InvoiceNow Submission for GST.

=== Registration of Peppol Account ===

# Verify if your business is registered with Peppol using one of the following methods:
## Visit [https://www.highnix.com Highnix's website] and navigate to the [https://www.peppoldirectory.sg/ Peppol ID Directory - SG Companies].
## Directly access the Peppol directory at https://www.peppoldirectory.sg/.
# Use the keyword search to check for your entity's name. If it does not appear, your entity is not yet registered with Peppol. Follow the steps below to register:
## Go to the Highnix website and navigate to the '''[https://www.highnix.com/peppol-einvoice-id-registration/ Invoice Now Registration Form]'''. Complete the form. Most fields are mandatory.
## After completing the security verification, click the '''SEND''' button.
## Highnix will process your request and notify you once your Peppol account is ready.

=== Activate and Deactivate of GST InvoiceNow Submission for GST ===

# Once your Peppol ID is created, navigate to Sales Mgt, Peppol-Sales and click on '''GST InvoiceNow Activation'''.
# If the Current '''GST InvoiceNow Status''' shows '''DEACTIVATED''', your entity has not yet been activated for GST InvoiceNow. Conversely, if it shows '''ACTIVATED''', your entity is GST InvoiceNow Activated.
# If the Current GST InvoiceNow Status: '''DEACIVATED, (Fig 1)''' user can Activate it by clicking on the '''Activate GST InvoiceNow''' button to activate the GST InvoiceNow.
# Once the button is clicked, there will be some processes running at the background. This process typically take about 1 to 2 seconds. When it is completed, a button of '''Complete GST InvoiceNow KYC''' will appear. KYC stands for Know Your Customer, a common terms used for authenticate.
# Click on the '''Complete GST InvoiceNow KYC''' button, and user will be redirected to GST InvoiceNow Submission Activation page. The Corppass authentication screen will appear. Please have the company's authorized personnel to scan the QR code using Singpass App from the mobile phone or login using the login and password. (Fig 3, Fig 4 and Fig 5)
# After completing the process, you may receive a confirmation email indicating that your GST InvoiceNow submission has been successfully activated.
# At this point, if you refresh the page, you will see a new entry (as seen in Fig 6), indicating that the GST InvoiceNow status was changed from Deactivated to Activate, then a Note entry at the extreme right showing that '''"Activation request initiated'''" was initiated. Then after user completed the KYC process, the "Current GST InvoiceNow Status" was changed to ACTIVATED.
# When the status is ACTIVATED, then the only button you will see is to '''Deactivate GST InvoiceNow.''' User can click on this button, follow the steps of Activating GST InvoiceNow to complete the Deactivation process.
[[File:GSTInvNowActivation.png|none|thumb|800x800px|Fig 1]]
[[File:Fig2-C5 Activate.png|none|thumb|800x800px|Fig 2]]
[[File:Fig3-gst inv Now corppass.png|none|thumb|800x800px|Fig 3]]
[[File:Qr code gstinvnow.png|none|thumb|800x800px|Fig 4]]
[[File:Fig5.png|none|thumb|800x800px|Fig 5]]
[[File:260717-Fig6.png|none|thumb|800x800px|Fig 6]]

Go to next topic: [[Extraction and Packaging of Invoice Data]]