When you add interest charges to lines on a supplier payment section, the interest is posted to the general ledger when the supplier payment selection is confirmed. Similarly, if you add interest charges to a supplier payment created in Supplier Payment Create, the interest is posted to the general ledger when the supplier payment is updated to the Paid status.

The interest is posted to the AP interest account associated with the entity bank account. If no AP interest account is defined, the interest is posted to the AP discount account associated with the entity bank account.