Interest Invoices Guide
Oracle Financials Cloud
Author: Taher Hammad
Oracle Financials Consultant
Taher Hammad
Navigate to Create Automatic Interest Invoices
1. Go to Settings and Actions → Setup and Maintenance
2. In the Payables functional area, select Manage Invoice Options task
3. Enable the Create Interest Invoices option, assign the Interest Expense Account, define the
Minimum Interest Amount, and select the Interest Allocation Method based on business
requirements
4. In the Payables functional area, select the Manage Interest Rates task
5. Define the effective date range for the interest rate and enter the annual interest rate
6. Go to the Home page, click Procurement, and then click Suppliers
7. Open the supplier site and select the Invoicing tab
8. Change the Create Interest Invoices value to Yes
9. Click save and close
10. Go to the Home page, click Payables, and select Create Invoice
11. Enter the invoice date as 01/06/2026 and set the payment terms to Immediate
12. Go to the Home page, click Payables
13. Click Tasks, select Create Payment, and enter the payment date as 10/06/2026.
14. Post to the ledger and review the journal entries
15. After applying the payment, the system automatically creates an interest invoice in Payables with
the same interest amount