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Xero Business Community

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Sales Invoices - Add interest to late invoices (including paid/part-paid Invoices)

Started by Chris Johnson in Feature Requests | Idea

Any one else dealing with adding interest to invoices that are paid late? While it is easy enough to add line items to an unpaid invoice, once an invoice is paid, this becomes a real hassle in Xero. So if you have the scenario of a late invoice where you receive a partial payment, you will have many headaches to add additional interest to the invoice after the first payment. I would like to see Xero add an ability to add late fees or interest to invoices, even after a payment is made.

Currently Xero recommends you either:
a) delete existing payments, then add additional interest charges, then add the payments back. Wow, and what about reconciliation?!
b) add additional invoices for extra interest charges. Sure, that's really manageable to have one invoice spawn new ones (at a rate of one per month in our case...).

One idea for fixing this could be done by creating a flag for an account that is late fees and/or interest (and then only allowing that type of account to be added in line items on a partially paid invoice).
Official Xero Reply
Edging on a year since my last post(Jan 2020), completely get that you all want to hear from us here.

With new invoicing available to all, the team are monitoring usage and continuing to iterate and develop functionality where we see most benefit to majority of people.

An option to automatically add a percentage of interest to an invoice when it reaches or surpasses the due date hasn't been plotted on the schedule just yet. Withstanding this, there are other ways in which Xero is developing to help you get paid quicker and get more visibility on how your organisation is performing -

- We've added more to the detail of a contact you can see when creating a transaction. You'll now be able to view a contacts current and outstanding balance, helping you quickly analyse your customer's debt. This is just one step on a journey to delivering Credit Limits functionality in Xero, another hugely supported idea in community
- Our reporting teams are experimenting, with betas of short-term cash flows and business snapshot currently underway. These are steps forward in being able to visually surface insights about your business and helping to predict future revenues
- In 2019, we announced enhancements with Stripe and GoCardless, where you can now set up recurring payments through 'Auto pay' helping change relationships with your customers and saving you both the time of manually making regular payments, and we'll continue building on this throughout 2020 to expand our offerings with these payment providers.

Now, I understand the above doesn't fulfill the inherit need of everyone here though do hope it shows the direction we're heading with a drive to making business easy, and help you get paid faster. If there's any new news to share I'll be back with another update for everyone following the conversation here.
 

Kelly M (Community Manager)