At the moment, on D365, once a customer Invoice has been paid / settled out, the Exclude from "Interest calculation" button becomes greyed out.

This makes it impossible for excluding the transactions in question from Interest note calculations in scenarios where the delayed payment from customer is for valid reasons.

The waiving of interest notes feature comes as a corrective means after the interests have already been generated.

However for a rather optimal business process flow, excluding the invoices from the Interest note calculations would be beneficial.