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.

@debiteure 

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

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.  

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?!

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:

• Add product and service items to QuickBooks Online
• Create invoices in QuickBooks Online

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:

• Change Product and Service types
• Group your products and services into a different category

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.

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

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!

What apps create interest to past due invoices?

I agree! I feel like in the past QBO offered much more than they do now. Can’t even assign deposit numbers! Ridiculous 

I hear your sentiments, Heather.

I see how great it would be to automatically apply interest for late invoices.

While this option is unavailable in QuickBooks, you may look for a third-party application. I'm unable to suggest one as there are various apps that QuickBooks supports. You can browse this page instead to check for an application that suits your company's needs: QuickBooks Global Apps.

I also suggest sending this product suggestion to be available. You can do so by clicking the Gear icon and then selecting Feedback. You can enter Automatically apply interest for late invoices as your keywords. Hit Next.

Your feedback goes to our Product Development team to help QuickBooks have a more friendly user interface.

You can also browse this article as your guide in keeping track of your customer payments: Record invoice payments in QuickBooks Online.

Fill me in if you have concerns about recording transactions. I'm here to help you out.

Does the Desktop version do this?

I'll share some details about adding invoice interest to the QuickBooks Desktop, @HeatherMarie1.  This way, I can guide you accordingly in handling your sales transactions. 

Adding interest in the invoice in QuickBooks Desktop is the same as QuickBooks Online, that you need to create a service item. Then add it to the second line when creating the invoice. 

In case you still need to create a service item for the overdue invoices, you can follow the steps below: 

1. Go to the Lists and select Item List. 
2. Press Ctrl+N and pick Service in the Type drop-down. 
3. Enter an Item Name and complete the Rate, Tax Code, and Account. 
4. Hit OK when done. 

For more details, see this link: Add, edit, and delete items.

Once done, add the service item you created in the second line in the invoice form. See the sample screenshot below for more reference: 

Moreover, check out the following articles to learn how to personalize your sales forms and how to prevent a finance charge from being assessed on an invoice:

• Assess finance charges
• Use and customize form templates.

Feel free to get back if you need an extra hand managing your invoices. I'll be glad to assist you. Take care!

I created the request a couple of years ago.  Still nothing.  The idea behind online and cloud based was that we’d always have the latest and greatest.  It’s costing 3 times as much as desktop and yet the program is stagnant.  The ROI is just not worth it.  No innovation. Do not listen to your customers.  Many other smaller company’s growing fast that are giving QuickBooks a run for their money.   

Made these Feedback several times, talk to someone about adding the option of interest rate automation inside Quickbooks 3 years ago and yet, nothing...  I think they just don't know how to do it and it's too complicated for them to integrate...  in my mind, this should be a no brainer to have this feature inside accounting solution like their competitors have...  Quickbooks, you are just not listening at your customer on that one!!!

if i add interest to an invoice, doesn't that change my sales for the month?

Yes. Adding an interest service item to an invoice in QuickBooks Online (QBO) can impact your sales for the month, cheryl15115.

It represents additional income earned from providing interest-related services to your customers when you add an interest service item to an invoice. As a result, this will increase your total sales for the month, reflecting the additional revenue generated from the interest charges.

Including the interest service item on the invoice will contribute to your overall sales figures for the period the invoice is dated. This additional income will be factored into your sales reports and financial statements, providing an accurate representation of your business's total sales, including any interest income earned.

You'll want to learn how you can invoice customers for partial payments. Refer to this article: Set up and send progress invoices in QuickBooks Online.

I'll be waiting for your response if you have further questions about managing invoices within the program. The Community is available 24/7. Have a good one.

Why cant QBO add interest on past due invoices?? This is a normal business practice.

I can see how you want this feature to be added in QuickBooks. I'll guide you on how you can add interest on past due invoices, Heather.

For now, applying interest automatically on past due invoice invoices isn't an option. As an alternative, you can manually add them directly on the invoice. To do so, you can follow the step outlined below:

1. Go to the Sales tab
2. Under All sales tab, locate for the overdue invoice and click Edit.
3. Go to the line item where you want to add the interest. 
4. Under the Product/Service field, click the drop-down arrow and click Add new.
5. On the Product/Service information, click Service.
6. Enter the name of the service like Interest.
   
   
   
    
7. Tap Save and close.

Furthermore, QuickBooks downloads the transactions automatically. Learn how it looks for and tries to match them with those you've already entered in your account, I've added this article for more details: Categorise And Match Online Bank Transactions In QuickBooks Online.

Please get back to us if you have any questions when adding interest. As always, we're here to ensure everything is taken care of.

I understand I can manually go through all the past due invoices and add it manually. However, this is very time consuming.

I see that "Late Fees' can be automatically added, correct? Is there a way to change the name of "Late Fees" as it shows on invoices? Legally, I cannot add "Late Fees", but I can add interest. 

Thank you for responding to the thread, HeatherMarie1. Let me clarify the situation regarding the overdue charges in QuickBooks Online.

I acknowledge the relevance of having an efficient process for recording transactions within the program. At the moment, the system doesn't have the capability to automatically add late fees due to the unavailability of this feature in the QuickBooks ZA region. It would be beneficial to share comments with our software engineers so that they can consider incorporating this feature into future product enhancements. Here's how:

1. Click the Gear icon, then select Feedback.
2. Type in your feature request.
3. Click on Next to submit.

You can manually add a service item instead and name it as late fees as your workaround. You can refer to the instructions given by my colleague MariaSoledadG.

I've also added these articles for your reference in other invoice-related activities:

• Add a discount to an invoice or sales receipt in QuickBooks Online
• Customise invoices, quotes, and sales receipts in QuickBooks Online

Your suggestions are greatly appreciated. I'll get back to you with any updates or resolutions you need if you have other questions about late fees. I'm always ready to lend a hand.

But the system does have the capability to automatically add late fees??? Here is a screenshot. 

no response???