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.

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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Dylan Taylor-Edwards commented
This is desperately needed as a feature for growing businesses. The fact it is not already a feature is shocking. Our team would spend more labour chasing funds every year than the costs of our subscriptions with Xero. Changing to another platform would save us money on this shortfall alone.
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Corbin Visual Ltd. commented
I have nothing new to add to this thread beyond what has already been shared. I simply wanted to reiterate that this features would be incredibly valuable for small businesses. Large companies don’t care to pay their invoices on time (even net 60 and 90), they know late fees are mostly empty threats, and there’s no better way to ruin a working relationship than having to nag them about owing interest. This is more than just a feature request, it’s fundamental to the survival of small businesses. Big companies don’t care about threats, there needs to be punitive damages or else they won’t lift a finger.
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Jo Benge commented
Surely this is an important feature that Xero should have prioritised in the 10 years it has been raised as an issue! An old system I used that was implemented in 1997 had this feature available!
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Rudi Scholtz commented
It is time to look for other solutions....
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Nathan Elston commented
So I'm assuming that if this posted 11 years ago, development at Xero is rolling at a snails pace or his will never be implemented
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Denym Bird commented
While Xero doesn't natively support this, 3rd party apps have picked up this challenge, apps like Paidnice (https://paidnice.com/) look to work well to add interest to late invoices, including taking into account credit against them.
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Andy S commented
Putting some development time behind this would yield a feature that would be hugely valuable. It's crazy that it's not present or on the roadmap. People are having to pay $100's monthly to add this on to their xero subscriptions currently
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Julie Sutton commented
Sadly when Xero first appeared on the market, it felt quite revolutionary - however feel they have been sitting on their laurels for far too long and it feels they are now lagging behind and have no idea how to catch up
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Attila Kalmar commented
They are increasing the fee, and do visual updates but do not care about their customers and their needs anymore. No real upgrades to how the system works. This idea was submitted in 2012. Ten years was not enough for them to implement it. Maybe it is time to switch to another accounting software with more/updated functions.
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Rhys Cornock commented
Dear Xero. According to your annual report, Xero's operating revenue for F22 was $1.097 Billion. Please spend 0.0001 of this ($109,700) making this feature.
It will immediately add tangible value for everyone in your 3.271 million (F22) strong subscriber base and improve retention rates dramatically. It would likely pay itself off within minutes.
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Kevin Leung commented
Xero does not care about this...it's been a full year since we've seen a response. Clearly ZERO progress.
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Sherrie Dunnings commented
What do you suggest as a work around please?
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Angela Young commented
This is actually quite an important feature and I was surprised to find out that its not standard
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Vicky White commented
Please add this feature. Critical to small business operations, particularly in these times. My clients are hammering me at the moment for a better/easier solution, especially with long statement balances.
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Deune Mienie commented
Hi Xero, Will this ever become a function in Xero in the near future? Seeing allot of comments but no feedback? Wondering what would be the best workaround this?
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Annette C commented
Can you please add this feature? We need it, especially in these times where customers are delaying payments. This issue was raised over 10 years ago. How long does it take to incorporate such a simple and necessary function?
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Echo Veit commented
This is a basic function that is a necessity for any business operating, may need to look elsewhere if this feature will not be implemented.
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Coast & Country Plumbing - Sarah commented
This is a basic function that is a necessity for any business operating with trading terms.
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Patrick Sheedy commented
I very much support this feature. Cashflow management is a very time-consuming practice without having to manually alter individual invoices when payment terms have not been met.
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Greg Bridle commented
As many others have commented, this is a critical feature for small business trying to manage their cashflow. Large companies will not pay invoices on time if there is no incentive to do so, and the only incentive they understand are punitive charges. Having to manually apply late fees is a big overhead for a small business where we are often running everything with a small staff.
This is the second highest voted feature under Business Features, it would be great if the Product Manager would be able to review this. As a few people have commented it is something that many of your competitors offer, and it can become an enticement to move due to the costs of managing late invoices.