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Level 1

How do i charge interest on past due invoices

We want to charge interest of 2% on overdue invoices.  How do we do that.

Searched everywhere but no joy.

8 Comments
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QuickBooks Team

How do i charge interest on past due invoices

Hello biserkaclark,

This is your lucky day! I'm here to help you enter a charge on past due invoices.

You have two options to charge interest to your customers:

  • Create a separate invoice for the charge
  • Add another line item on the past due invoice

First, if you haven't created an interest item yet, let's go ahead and create it. Here's how:

  1. Click the Gear icon, then choose Products and Services.
  2. Click New.
  3. Choose either Non-inventory or Service.
  4. Enter a desired name of the interest.
  5. Choose the Income account, then click Save and close.

Now, here's how you can add the item on the new invoice:

  1. Click the Plus sign (+) icon, then choose Invoice.
  2. Under the PRODUCT/SERVICE column, add the interest item.
  3. Enter the amount manually in the AMOUNT tab.
  4. Click Save and close.

If you want to include the interest on the existing invoice, here's how:

  1. Click Sales, then go to the Customers tab.
  2. Choose the customer, then look for the past due invoice.
  3. Add the interest item in the unused line, then enter the amount.
  4. Click Save and close.

That should do it, biserkaclark. If you have other concerns, don't hesitate to post in the Community. 

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Level 1

How do i charge interest on past due invoices

The problem with this is i have over 300 overdue invoices. Why do i have to spend an entire week going through each invoice and adding interest to it. Isnt there an aging section where interest can be added automatically because it is 30 days past due...

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QuickBooks Team

How do i charge interest on past due invoices

Hello Laura20, 

 

The answer Kristine Mae gave above is the best way to record any extra charges for a past-due invoice. At this time, there's no automated process for adding interest to your past-due invoices. I'll pass along your suggestions to my team for review. We're always looking for ways to improve our products. 

 

Let me know if you have any other questions. 

Have a great day!

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Level 1

How do i charge interest on past due invoices

I agree that it would be VERY helpful to have an automated feature to add interest onto past-due invoices versus having to do it manually because we too are managing hundreds of invoices on a monthly basis and it is very time-consuming to have to add interest to each invoice individually. Please let us know if this feature ever gets added! :-)

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Level 2

How do i charge interest on past due invoices

I'm in the same boat and asked about this awhile ago.  There's a partner app you can look for.

 

https://community.intuit.com/questions/1811288-i-want-qb-online-to-automatically-track-and-generate-...

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Level 1

How do i charge interest on past due invoices

Please do add an automated process! For alcohol in the State of California, we are required to charge 1% after 43 days and then additional 1% for each subsequent 30 days past due. This is incredibly difficult to maintain manually. 

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Level 2

How do i charge interest on past due invoices

I find it AMAZING that QBO can charge what they do, on a monthly basis, and then we are expected to calculate interest.  Unbelievable.  Or add an additional app...

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Level 1

How do i charge interest on past due invoices

I agree as well.   QuickBooks is supposed to be the industry standard.   This is a basic and necessary function.  There is no reason that it should not be implemented.