How do I set up invoices with late payment and interest charges? FYI Invoices have different due dates e.g 30 days, 7 days etc.

Hi aniz-premiuminno,

Being able to record invoices and interest charges is essential to ensure that you receive payments for your services. QuickBooks Online is a great program that offers the ability to track your sales and expenses for your business in a simple way. I'd be glad to provide you with information on how to enter the payment fees and the interest charges.

In QuickBooks, the system allows you to manually record interest charges for invoices and late payment fees. You can charge interest or late payment fees on overdue invoices by adding finance charges to the transaction. First, you will need to create an item for finance charges. I'll explain how.

1. Go to the Gear icon.
2. Select Products and Services.
3. Click New.
4. Select Service.
5. Enter the name, such as finance charges.
6. Enter the price/rate.
7. Select the Income Account to track how much you receive in finance charges. If the income account is not listed, you can just type the name, press Enter, and complete the New Account template: Income for the account type and Service/fee income for the income account type.
8. Click Save.

After creating the item, you can open the concerned invoices and add the finance charge item that you've set up. Next, you'll need to enter the finance charge amount and click Save and close. This helps you apply a charge interest or late payment fee on the overdue invoices in QuickBooks.

Let me know if you have any questions, I'll be happy to help.