Interest on overdue invoices
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 charg...
Forum Discussion
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,
GenreveThanks for your reply Genreve.
What do you mean desktop version? I only use MYOB on my laptop, I don't have an app or anything like that.
Manually calculating it is going to be a real task working it out over number of days etc. Surely there is an easier way?
Hi BeastProduction,
When we say "desktop version," we mean software that you install and run directly on your computer or laptop. This is different from cloud-based or online versions, like your current product, MYOB Business Pro.
Currently, MYOB Business Pro doesn't automatically calculate and add interest to overdue invoices. But you can still do it manually by adding a new line item for the interest amount on the invoice.
Cheers,
Princess
