Occasionally, you may have Clients with overdue invoices and you may want to charge them interest, or a late fee/penalty.
To charge interest:
- Enable this setting by selecting Firm Settings from the drop-down menu beside your avatar.
- Click Billing & Accounting in the vertical menu bar and select Billing Options from the expanded menu.
Scroll down and check off the box labeled Charge Interest by default for invoices that are paid late on the right-hand side. More fields display that allow to customize the wording that will display on the interest line under the Name of Interest Charge.
Once enabled on the firm level, you can now begin charge interest to both Contacts/Matters.
New Person/Company - Slide the toggle to the right to charge Interest.
New Matter - Select the appropriate radio button
At 12AM each evening, qualifying invoices will have interest assessed as assigned to the Matter as a Billable Interest Charge. This charge will automatically be created in the Invoice column under the Interest tab of the Time module.
This is where you can view all billable
activity/WIP. It will immediately be available to be pulled onto your next invoice.
These line items will only be available to be added to a new invoice and cannot be added to an existing invoice
They display on the General Ledger under the "Interest Revenue" revenue account on an accrual basis once it has been invoiced, and on a Cash basis once it has been paid by the client.