Hi, I have a customer who has overdue invoices from a year ago and as much as I have tried to work with them, their drip feed payments have started to dry up. I need to know how to add interest charges to overdue invoices. Hopefully this will encourage payment or some sort of communication. Thanks in advance.
Hi BeastProduction,
Currently, we don't have a feature for invoices to reflect interest charges when they become overdue. However, you could look at setting up finance charges for your customers, which are amounts added to an outstanding balance as a penalty for overdue payment. These charges are usually added to the customer statement.
To set this up, you would need to configure the terms on the invoice. Once this is set up, the system will automatically calculate the charges. For detailed instructions on how to set this up within AccountRight, you can refer to our help article: Finance charges paid by customers.
I hope this helps!
Regards,
Earl
Hi Earl,
I really appreciate your reply.
I have tried following the instructions you provided but I'm not sure I am in the right place. You mentioned setting up within AccountRight; I don't think I have this, according to my subscription I have MYOB Business Pro.
Is there another way to do this?
Look forward to your reply.
Regards,
Geeta @ Beast.
Hi BeastProduction,
As of now, the financial charge mentioned by is only available on the desktop version, this won't be accessible with your current subscription. With this in mind, there is no option to natively account for interest charges for your invoices. A workaround would be creating a finance charge line item in the overdue invoice which will be manually calculated and added to the invoice each month. I believe it's best to keep this open as other users might have another workaround they can share on this post.
In the meantime, feel free to let us know if you need any other help.
Thanks,
Genreve
Hi,
I have gone through those steps. Successfully added finance charges to overdue invoices and setup finance charge income accounts. I have recently had partial payments of interest charges paid by my customer.
Now when I record the interest/finance charges paid by the customer in the receive payments wondow via finance charge,
it creates a new invoice with the total paid with a balance owing of $0 which is all correct.
However, upon further sending a new statement to the customer, the finance charge paid does not actually come off the total finance charges owing and does not record anywhere in the statements how much finance charges owing has been paid. So they are being charged daily compounded interest on the full amount rather then what they actually owe in finance charges.
is there a fix to this?
Thanks,
Huss
Hi Husst3214,
When you're making customer statements that include finance charges, you need to make sure those charges are set up right and show up on the statements. Here's how you do it:
Cheers,
Princess
Thanks Princess_R, I’ve done that, However the statements are not showing the paid finance charges and not coming off the total of finance charges.
Is there a way to correctly show what finance charge has been paid and total owing remaining?
Thanks,
Huss
