Sales Invoices - Add interest to late invoices (including paid/part-paid Invoices)
Ability to add interest for the late payment. This includes part-paid too
Purpose: Save time by adding the interest without having to delete the existing one and remake a new one with the additional interest.
AdminXero Team
(Admin, Xero)
shared this idea
Hi everyone, a year on from my last engagement we wanted to provide an update for you all here.
As many will be across we're in the midst of making a lot of iterations and improvements to new invoicing leading up to the retirement of classic invoicing in September (2024).
We have a fair amount of work lined up in the teams schedule over the coming months and to give an indication there isn't any committed plans around a function to add interest to invoices.
That said, we do have a team that have picked up and are considering how we might solve this with the technology in new invoicing - It's early days on this yet, but I'll share if there's any progress on this for you all here.
In the meantime, as has been shared by others over time there are a few ways you could accomplish this today;
- Include detail of any charges for late payments to your invoice template Payment terms & details, and
- Edit and add a new line to your invoice to add the late fee - you could make use of Xero's inbuilt calculator for this, or
- Edit and add a 'mark up' to each line of your invoice - again Xero's inbuilt calculator could help with calculating the amounts
- Explore Xero's app store to see if you can find an integration that works for your business needs
- In an effort to prevent late payment of invoices Credit limits may help in being able to prevent customers raising too much debt with your business
We appreciate the options above don't automate the full process of what you're asking here, and we will share if there's any news. Thanks
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ALEXANDRA EGAN
commented
How do I Add interest to late invoices? There are no steps to show me how....
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ALEXANDRA EGAN
commented
Can someone please help me. I'm trying to find out how to edit current invoice and add interest on total amount please. This has been THE MOST challenging experience to get an answer on something that's so simple and yet it's taken me all morning and i'm yet to get it resolved.
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Alicia Rogoza
commented
Having the interst auto calculate when you produce a statement liek Sage used to, would help small businesses with cash flow.
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James Strickland
commented
This would be a great feature for our business, expecially if it had the option to calculate 'statutory interest' for the UK (bank of england base rate + 8%).
This idea was submitted in 2012, how can this not have been addressed more than 10 years later when Quickbooks already offer it for free.
At year end it could be a deciding factor whetheras to stick with Xero or switch to Quickbooks. -
Thames Joinery
commented
no wonder xero share pricing is crashing they dont listen to what the customers want i used myob 10 yrs ago and it had this feature, **** my accountant wanting me to use xero myob was so much better
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Alex Mahara
commented
I've had a look at Latechaser but I'm not keen to add 3rd party apps as they often 'go wrong' unexpectedly. I was hoping Xero could just add a Late Payment Fee item in the invoice which dynamically calculates interest on the invoice; a simple but highly useful function.
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Graham McTaggart
commented
To who it may help, we have recently come across an app for applying interest that is Xero compatible called Latechaser, we are still getting used to it, but it seems like it will be pretty useful.
Maybe give the free trial a check out at https://app.latechaser.com/. I have no affiliation or financial ties with them, just trying to help people in the same situation. -
DERVIS KONURALP
commented
I have to use excel to calculate interest until the day and then I have to raise a separate invoice, can Xero not help us?
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Philip Lombard
commented
This will support our business in driving overdue invoices and is seen as a critical element in any business.
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Beth Dupes
commented
I cant believe Xero has not done something about this all these years
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Alicia Viljoen
commented
This would make life so much easier. Adding an add on, is not worth the while for small entities
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Natasha Bridgeman
commented
MYOB has option to charge interest for overdue accounts, would be good for xero to have as a standard feature not an add on.
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Cynthia Ibrahim
commented
interest and late payment fee feature should be part of XERO business
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GNB Properties
commented
Please add this critical feature for the benefit of all users.
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Felicity Little
commented
please add this essential feature for the benefit of all business users.
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Carolyn Jay
commented
This is essential and a separate app at a businesses expense shouldn't be required.
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Jessica Kirkett
commented
I think it mustn't be in their best interests to implement. Maybe they have ownership in an add on company that provides the service or something else, but I agree it is an easy thing to implement, MYOB used to do it before Xero even existed I am sure of it. Its a sad day when Im missing a feature of MYOB i celebrated the day I got my last client to move over lol
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Blair Seddon
commented
Why is this so hard for a large company to implement?? I have been doing it manually. Someone told me the their accounting software does it automatically. Sounds like the biggest in the accounting industry are falling behind!
This post has been up for years, any chance this could be taken seriously?
Thanks -
Thailand Pool Tables
commented
The problem is, no enough people comment on issues that are needed, everyone is hoping that Xero sees common sense but I think they just focus to increase their prices without adding anything significant to help their customers or bother to read these requests !
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Allan McMillan
commented
Hello Xero ... are you there? Hello ... where is your response to this issue please.