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Client's are asking for this facility to be set up within their subscription and should be an option to be looked at.

How is this not added yet ?

As mentioned previously, this feature has been requested years ago and is available with a host of other accounting software systems.

Upgrading technology across your Sales features is all well and good but this feature should not need years of development.

This is a critical missing feature.

Feature is present in Sage One and Quickbooks... it's an omission in Xero.

It would be nice to see this feature appear alongside the overdue invoices flag on the Dashboard, and also on the draft Invoice page - similar to the way the prompt to add assigned expenses is shown.

Why does it take so long for features to be added which should've been part of the package from the beginning. Not everyone has the ability to just debit a client's account for payment like XERO can. It is like the development team thinks everyone out there will just pay on the due date. Reading the comments this item has been requested years ago already! what is so difficult to this done?

Xero does talk to people and get their opinions on things they are working on. I have participated in these and appreciate it.

But as others have mentioned this is a must for small businesses so that we can easily collect from our customers who are late. I agree this is really a feature that needs to be addressed sooner than later. It takes a lot of time to get this figured out and adjusted on the invoices especially in times like we are going through right now with the inflation and possible recession. We may see more of this popping up with customers being late which is causing us to be late, etc. We get charged but we need to have the ability to do the same easily.

OMG, Kelly summited this idea in 2012 and still not updated on the system. Please do something for us team! it is definitely first need for small business!

Having this feature would save a lot of time.

The ability to add compounding interest seems very standard these days. This is the one missing element for me in Xero which is one of my favorite apps.

$100/mo for a feature like this (on the Xero app store) is pretty insulting given many of the deadbeat clients will never pay anyway. The business is already in a bad situation and these Xero app store guys show up to kick 'em when they're down. 😂

In addition to adding a % interest, the functionality should have a flat late payment fee e.g. £20, no matter the size of the invoice. As per Samuel Basnett's comment this is pretty standard setting in other accounting programmes. @Xero team, please prioritise this, as late payments are getting worse and worse over the past 6 months.

This would be a great feature that would make a lot of businesses happy! It's a part of many other invoicing programs so it should be a part of Xero.

We definitely need this feature to chase the late payment clients.

This is a good idea that would add value to many Xero customers, but no visibility on the product development route map is offered.

Are there any Xero user feature requests you have actually developed and implemented?

It'd be great to know whether Users like me should bother with this forum at all.

Has and interest been added yet? would love one option thats even compounding.

@Philip Van Schalkwyk Yes, laws can be complicated. Maybe Xero should remove VAT from the system, because some items are exempt, and some zero rated and some standard rated, and if you don't know your laws, you can make mistakes, which can lead to penalties and interest. Sounds like too much trouble. Rather take away the functionality.

Hi all
I understand that this is a feature that a lot of us ask for, but I would be remiss to not add a note of caution.

My experience in small business environments in Africa, is that charging interest is often more effort than it is worth, and can run afoul of legislation and regulation very quickly is you are not careful.

Why more effort than worth? More often than not, when a client does pay, they are going to beg and plea for you to write back the interest....especially under current economic conditions.

Why legislation and regulation?
1. If you do not have an agreement with the client stating that you may charge interest, you could very well be in breach of law if you do charge interest, and
2. Most southern African countries have Usury Legislation that specificy maximum interest rates, and requirements to change the rate every-time that official interest rates change. If you fail to do so, you would be in breach of law.

I would be the first to state that this is not necessarily the same in all jurisdictions, but it is something to keep in mind.

Hi, I see that you are not actioning this request at present, but I would support a function in Xero to add interest/fee to a late payment of invoice.

Thanks.
Barbara

What does that mean please? If you can't get the primary functions of Xero right, which is accounting and bookkeeping software, then you will lose customers. Don't focus on the bells and whistles to the detriment of the wheels and steering.

Hi Kelly,

Thank you for the update.

For the sake of managing expectations, I think it would be helpful if you could provide more context. In my mind, the automatic application of interest on sales invoices (the topic of this thread) sounds exactly like a "feature(s) in Sales" (what you say you are focusing on). Yet, the rest of your update implies that you have no plans to address this feature.