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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.

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AdminXero Team (Admin, Xero) shared this idea  ·   ·  Report…  ·  Admin →
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under review  ·  AdminKelly Munro (Community Manager, Xero) responded  · 

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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  • Sarah Kitcher commented  ·   ·  Report

    Agree this is a necessary business tool and a time-saver

  • Carter Threatt commented  ·   ·  Report

    There should be a function to add automatic late fees and or interest on a contact-by-contact basis or just at all especially since you can't apply a late fee after a partial payment without reversing that payment. Xero needs to add the option to add either a fixed/one-time, daily, weekly, or monthly late fee OR interest percentage or a combination of both.

  • Vicki Witty commented  ·   ·  Report

    Being able to add interest to an overdue account should just be an integral part of Xero system that we pay for. Why is this so hard for Xero to implement??

  • Wendell Beuke commented  ·   ·  Report

    Agree this is a necessary business tool and a time-saver.

  • Maria Bacigalupo-Rose commented  ·   ·  Report

    Looks like this has been an ongoing issue with Xero since 2022. Come on Xero. It's time to start listening to your customers, pull your finger out and include this in your software.

  • Margaretha Coetzee commented  ·   ·  Report

    When are you guys going to add the interest on late payment function, it's really annoying not having it included in your program? Why do we need to pay for another app?

  • Anja Albach commented  ·   ·  Report

    Any update on a solution for adding Late Payment Fees automatically?
    It's been nearly a year since the last update on this subject.

  • Irene Martini commented  ·   ·  Report

    This request has been around for quite a while. Xero what is your response? Are you going to add function or not?

  • Patrick McNamara commented  ·   ·  Report

    I agree, except I think it should automatically create a new invoice if the overdue invoice is in a closed period.

  • John Cross commented  ·   ·  Report

    I agree this is a much-needed feature that other software packages have.

  • Bee Hesketh commented  ·   ·  Report

    Any update on this? Seems as though it is a standard feature with Quickbooks.

  • John Hart commented  ·   ·  Report

    A Solution for Late Payment Interest and Fees (Including Part-Paid Invoices)

    Hi everyone,

    I noticed this feature request and wanted to share a tool that could help: https://stagepay.app/late-fees

    StagePay automates the process of applying late fees and interest to invoices, saving you time and ensuring nothing gets missed. Here’s how it tackles the issues mentioned:

    Automatic application of late fees and interest—choose between flat fees, percentages, interest rates, or even multiple concurrent late fees and interest charges.

    Handles part-paid invoices seamlessly by applying fees or interest only to the remaining unpaid portion.

    Customisable notifications and reminders—you can set up automatic emails or messages to notify clients when fees or interest are applied, along with payment reminders.

    Custom late fee and interest policies tailored to your business, so you’re always in control of how and when charges are applied.

    No monthly subscription cost—StagePay only charges a small transaction fee when your clients make payments by credit card.

    Everything happens seamlessly, with notifications sent to your clients as soon as a fee or interest is applied. No need to manually intervene or recreate invoices—it’s all automated and clear.

    If this sounds like something that could help, check it out at https://stagepay.app/late-fees

    Thanks

    John

  • John Hart commented  ·   ·  Report

    A Solution for Late Payment Interest and Fees (Including Part-Paid Invoices)

    Hi everyone,

    I noticed this feature request and wanted to share a tool that could help: https://stagepay.app/late-fees

    StagePay automates the process of applying late fees and interest to invoices, saving you time and ensuring nothing gets missed. Here’s how it tackles the issues mentioned:

    Automatic application of late fees and interest—choose between flat fees, percentages, interest rates, or even multiple concurrent late fees and interest charges.

    Handles part-paid invoices seamlessly by applying fees or interest only to the remaining unpaid portion.

    Customisable notifications and reminders—you can set up automatic emails or messages to notify clients when fees or interest are applied, along with payment reminders.

    Custom late fee and interest policies tailored to your business, so you’re always in control of how and when charges are applied.

    No monthly subscription cost—StagePay only charges a small transaction fee when your clients make payments by credit card.

    Everything happens seamlessly, with notifications sent to your clients as soon as a fee or interest is applied. No need to manually intervene or recreate invoices—it’s all automated and clear.

    If this sounds like something that could help, check it out at https://stagepay.app/late-fees

    Thanks

    John

  • Georg Tschoep commented  ·   ·  Report

    Please add the functionality to automatically add late payment fees with the invoice reminder settings. this can be as simple as the product "Late Fee" being automatically added as a line item when the invoice reminder triggers

  • Jen Rollack commented  ·   ·  Report

    I would place this as highly important to our organizations.

  • Pierre Kennedy commented  ·   ·  Report

    Yes indeed it will be nice to get feedback on this soonest

  • James Vanden commented  ·   ·  Report

    Have you added a feature to allow users to Calculate and charge interest on overdue invoices yet?

  • Ross Brewer commented  ·   ·  Report

    Any update on this team Xero.
    Agree with the comments below that this is important for businesses in todays market

  • Nicola Truuts commented  ·   ·  Report

    100% agree with Aleksandra's comment. The new invoicing is terrible, the majority sent from the new invoicing goes to customer spam. Will be sticking with Classic as long as possible. Urgently needing the ability to add interest easily to late payments. I would of thought that being an accounting/financial system that this function would be a given. Considering the amount of paying customer requesting it, why is has it not yet been implemented?? Maybe Xero has put it in the too hard basket....?

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