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debiteure
Level 1

Hi, is there a way to create an automatic interest on overdue invoices? Or must I do each manually?

 
7 Comments 7
JaneD
Moderator

Hi, is there a way to create an automatic interest on overdue invoices? Or must I do each manually?

Good day, debiteure.

 

You'll have to manually add the interest on overdue invoices. You can create or set up the interest as a service item in QuickBooks Online (QBO).

 

  1. Go to the Gear icon and choose Products and Services.
  2. Click on New and select Service.
  3. Enter the name of the item and choose an income account.
  4. You can also enter the rate of the item.
  5. Click on Save and close once you're done.

You'll also want to create templates for recurring transactions in QBO.

 

We'll be around if you have further questions. Have a good one.

Fiat Lux - ASIA
Level 15

Hi, is there a way to create an automatic interest on overdue invoices? Or must I do each manually?

@debiteure 

There are some 3rd party AR management app in the market with automatic interest feature.  Consider to integrate it with your QBO.

Coronapool
Level 1

Hi, is there a way to create an automatic interest on overdue invoices? Or must I do each manually?

They charge $40 dollars a month.  Almost $500 a year for this service and can’t even have a basic service like this which was always included on the desktop version.  Quick books sucks.  

Chris 4
Level 1

Hi, is there a way to create an automatic interest on overdue invoices? Or must I do each manually?

This is really disappointing.   Sage has a feature for the rate and the time you want to start applying it and it is added to client statements with overdue amounts automatically.   Are you telling us we have to issue new invoices for interest on overdue accounts?!

 

Joesem M
Moderator

Hi, is there a way to create an automatic interest on overdue invoices? Or must I do each manually?

Thanks for joining the Community space, @Chris 4. Allow me to chime in and share some details about creating interest in overdue invoices. 

 

You can apply the created service item when you create an invoice for your customer. Just add the service item on the second line. 

 

In case you haven't created a service item for overdue invoices, you can follow the steps shared by JaneD above. To apply the interest of overdue invoices, here's how:

 

  1. Go to the + New button.
  2. Select Invoice.
  3. In the Product/Service drop-down list, choose the service item created then fill out the necessary details.
  4. Select Save and Send.

You can browse these articles for more details:

 

 

Also, you can look for a third-party application that allows creating automatic interest on overdue invoices. Here's how:

 

  1. Log in to your QuickBooks Online account.
  2. From the left pane, click on Apps.
  3. Search for apps in the search box.

 

QuickBooks displays the list of applications available that match the description you entered. Once you find the right app, click to open it. We’re working on releasing new features soon. For product updates, you can check out our blog post for recent changes.

 

I've included these articles that will help you manage your product and services in QuickBooks:

 

 

You can get directly in touch with me if you have additional questions in QuickBooks Online. I'd be more than willing to lend you a hand.

SH611
Level 1

Hi, is there a way to create an automatic interest on overdue invoices? Or must I do each manually?

When creating the service item for the interest how do you stop it from taxable?

GebelAlainaM
QuickBooks Team

Hi, is there a way to create an automatic interest on overdue invoices? Or must I do each manually?

It's nice to see you here in the Community, @SH611. I can help you change the service item from taxable into non-taxable. 

It is easy to change taxable items into non-taxable items. You can follow the steps below.

  1. Go to the Sales menu and select Product and Services
  2. Click New on the upper right then select Service and fill in necessary information.
  3. Scroll down a bit and click on Edit sales tax link.
  4. From there, click on "Still don't see what you're looking for?" then scroll down a bit and select Nontaxable.
  5. Then, select Done

I've also added a screenshot for visual reference. 




In case you need to apply sales tax rates to transactions and sales forms in QuickBooks Online, click here.

If you wish to send an invoice and you need an extra hand, feel free to get back. I'll be glad to assist you. Take care!