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I have clients that wish to use this function to automate late payers

It appears XERO is just being ignorant as this feature has been in request from many for many years now and still no progress has been made. While there are very quick to increase price every year. Need to look for another software

The last accounting system where I used had a feature where you put an interest rate for each for each customer then at the end of the month you'd finished reconciling all receipts, you would press the "calculate interest" button, it would open a window with fields. One was a date field where you put the cut-off date for which you wanted to calculate the charge - ie if today was 1st August, Id charge for any invoice 30 days or more overdue so I would choose the date 30/06/2023. Then in the comment field, Id write "Service charge for invoices overdue >30 days". It would have a GL code there which you could set up and then it stayed the same. The system would create a service charge for each client by totalling all invoices with due dates before the date I entered and charging 1.5% of the amount. Then it would generate an invoice form we had created and send it.
When the customer receives an invoice at the start of the new month, it was a reminder that being overdue was costing them money too. I would credit any charge where the client paid the overdue invoice within 7 days of the start of the month.
It completely changed the behaviour of 90% of my clients.
This is desperately needed here.
You don't need to add the charge to the current invoice, just fresh invoice based on the items overdue before a specified date is easier to work out.

Just a note guys - having sales without the ability to penalise people who don't want to pay for them just put us out of business!

Kelly Munro (Community Manager, Xero) regarding your Response 5/10/22
you mentioned that you we're going to keep close to the Idea & would share any progress!!!

Sales Invoices - Add interest to late invoices (including paid/part-paid Invoices)

Just wondering how that is going? Most Basic Features that any other accounting packages has & Xero does not, nore are they doing anything about it - Still just creating Beautiful........

How about getting BASIC mastered first!!!!!!!!!!!!!!!!

Please implement this ASAP, it can't be that hard honestly.

We are wanting to add this to our invoices now and would appreciate it being rolled out soon. Can I ask what Xero's recommended way for handling this is? Do we create a "product and service" item called late fees? We really don't know how to do this without it being built in. Any advice?

Agreed...we really need this. Manually adding it is too difficult to keep track of and creates sloppy accounting. Also our accountant locks everything each month so going back and adding it to late invoices isn't possible. Doing a brand new invoice for the interest seems silly to me...hopeful that Xero can do this sooner than later

I dont understand why this is not a standard feature on Xero?

This is something I have requested back in 2018 and still no progress.
It would be great to have this functionality added.

Very Important to a number of users I would suggest

This is a serious issue (along with not being able to hide bank balances for collaborators) and while I like Xero and recognize it will be a pain to leave, I am currently looking at other alternatives. Paying a third party app is not an option.

On a previous note, I was using MYOB before coming over to Xero.

While I find Xero easier to use, MYOB had a lot more functionality. And after using MYOB for a short time got used to it and was easy for me to use.

The two main things that I have requested from Xero, are that they enable the system to change an invoice that was approved in error to a draft. Having this feature would also make it possible to add interest manually calculated to the invoice. This would at least be a step in the right direction.

As with MYOB, the system should have the capability to automatically calculate the interest owing based on the terms inputted into the client card.

Just an idea for both Xero and anyone wanting to consider another program.

The only reason why it has not been added is because another 3rd party struck up a deal with Xero to do an addon app which means we need to pay even more money for a half baked system - as soon as Xero stops integrating with WorkFlowMax next year we’re gone!

Xero is failing us. This is standard practice. Incorporate this feature immediately.

Perhaps it is in the 'too hard basket' since the amount due will continuously increase the longer the invoice is left unpaid. I calculate the interest only when I send it off to the debt collector.

Hi team Xero, being able to add penalty interest to an overdue invoice should absolutely be a function in Xero. We pay good money to use your company and would expect this basic feature to be an integral part of Xero as it is with other financial systems.
Please provide a time frame for when this feature will be available.
Thanks

Hello @Xero any update we need a timeframe for this feature or is the only solution to change the software provider?

I see a couple of people have indicated that they have moved to another company that actually cares about collecting overdue accounts and has this very simple feature.
It would be appreciated it one (or more) of these people would post a list of the alternative suppliers and how they rate them so those of us that require this simple feature can migrate to them,
I see that an enterprising business has jumped in to try an fill the cap, but at an extra cost which while is an a possibility I certainly don't wish to have any more of the costs of carrying debt eaten up and would rather move a supplier that offer it all in one package

This is currently a struggle in Xero and this feature seems like it should be a standard feature for invoicing as most companies to impose late fees for invoices past due.

Hi Deryn

I applaud your enterprise in offering something that Xero seems incapable of providing.

I think however, that you have missed the entire point of this discussion. Every single contributor to this idea expects the ability to charge interest to be an integral part of Xero. We pay more that enough for this accounting package, and it should not be an added expense, especially in this economic climate.

I am slowly coming to the conclusion that Xero doesn't have the expertise to write the code required to provide this enhancement. (More than 11 years.)