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DileepaNirmal
March 10, 2022
Solved

Add interest on overdue invoices

  • March 10, 2022
  • 2 replies
  • 0 views

Hello,
Is there any way to auto add an interest on overdue invoices QuickBooks online? or should I use third party apps? 

Best answer by Giovann_G

Hello. I need to know, whether there is an option called late fees under Account and settings in QuickBooks online? I see a video clip a man showing that feature on YouTube.


Hello, DileepaNirmal.

 

I know having the late fee feature is beneficial to your business. As my colleague stated above, this function within our product is currently unavailable for QuickBooks Online (QBO) in the UK version. 

 

The Automatic Late fee option is only available in the QBO US. That might be the one you see on YouTube, wherein you can turn it on under the Account and settings. 

 

In the meantime, you can add the late fee manually to new or existing invoices. Check out this article for a complete guide: Add service fees manually to invoices. You can also look for any third-party application that has this capability. Just click the Apps menu to find one.

 

Additionally, feel free to visit this resource for your future tasks about tracking your business financials: Run reports in QuickBooks Online. Here you'll learn the precise reports to use based on the details that matter the most to you.

 

Don't hesitate to leave a comment below if you have other questions about the late fee. I'll be here to help you out.

2 replies

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payment after leaving
March 10, 2022

Hi DileepaNirmal There isn't a function within our products that would automatically apply a charge for overdue invoices, this would have to be done manually, or, as you have stated, there may be an app available. We will however pass your valued feedback on to our developers for their consideration and we'd be grateful if you can leave feedback from within the product. .

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    DileepaNirmalAuthor
    March 10, 2022

    Thanks. Can you suggest me a third party app?

    A
    Ashleigh1
    March 10, 2022

    Hello DileepaNirmal, unfortunatly we are unable to advise you onw which thirs party to us, it would be a case of having a look at the app section in Quickbooks and looking though and seeing which is the best one that will suit your needs. 

      paul72
      paul72
      March 11, 2022

      Hi @DileepaNirmal 

       

      UK Gov / HMRC recommend sending a new/separate invoice for the late fees / interest.

       

      See https://www.gov.uk/late-commercial-payments-interest-debt-recovery/print#:~:text=Send%20a%20new%20invoice%20if%20you%20decide%20to%20add%20interest%20to%20the%20money%20you%E2%80%99re%20owed.

       

      Hope this helps.

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      DileepaNirmalAuthor
      March 14, 2022

      Hi,

      That means can I issue an invoice only for interest ?

      paul72
      paul72
      March 15, 2022

      Yes - you can issue an interest only invoice.

      You can also charge a business a fixed sum for the cost of recovering a late commercial payment on top of claiming interest from it.

       

      The interest (& any late payment charge) is zero rated for VAT (or Outside the Scope if you want to get technical) but is calculated on the VAT inclusive total you're owed.

       

      Note: this is only for B2B transactions.

       

      Hope this helps.

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