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I'd like to propose that Xero develop a built-in feature for charging interest on overdue customer accounts that doesn't require creating sales invoices.

Current Limitation:
Currently, the only way to charge interest on overdue accounts is by creating an invoice, which records the interest as sales revenue. This creates accounting challenges because:

• Interest on overdue accounts is not sales revenue from our core business operations It should ideally be classified as "Other Income" or "Finance Income"
• This affects the accuracy of sales reporting and financial analysis
• It requires workarounds or third-party apps from the Xero App Store (at additional cost)

Proposed Solution:
A dedicated interest charging feature that:

• Automatically calculates interest on overdue invoices based on user-defined rates and terms
• Posts interest charges directly to an "Interest Income" or "Other Income" account
• Maintains a clear audit trail linking interest charges to specific overdue invoices
• Allows customization of interest calculation methods (simple vs. compound, daily/monthly rates)
• Can generate separate interest statements or add interest to customer statements

Why This Matters:
Interest charging functionality is a standard feature in many accounting systems, and having to rely on manual invoicing or paid third-party apps for such a fundamental business need feels like a gap in Xero's core functionality.
This feature would benefit many businesses that need to manage late payments while maintaining accurate financial categorization.
Would love to hear if others in the community share this need and any thoughts from the Xero team on potential development of this feature.