The module enables businesses to automatically calculate and apply penalty interest to invoices that are not paid by their due date. Interest can be computed on a daily, monthly, or annual basis depending on defined payment terms. This ensures fair compensation for late payments and reinforces timely customer settlement.
Define penalty interest rates (daily, monthly, or yearly) linked to specific payment terms.
Automatically compute and append interest lines to overdue invoices.
Generate corresponding journal entries to reflect interest income accurately.
Support audit-worthy tracking of interest events tied to invoice due dates.
Offer flexibility in configuring triggers, such as grace periods or interest-free windows.
Encourage timely payments by transparently applying penalty interest.
Reduce manual effort and the risk of missed calculations for overdue accounts.
Improve accounting accuracy with systematic recording of interest charges.
Maintain fairness and consistency in cash collections and credit control.
Provide clear audit trails for interest-related adjustments and accounting.
Automated Interest & Penalties
App for Interest on Late Payments
Manage Overdue Invoice Charges
Auto-Apply Penalties on Overdue Invoices
This apps is helps to calculate daily,monthly or yearly Interest Penalty on Overdue Invoices based on payment term configuration.Payment term is something that accountant emphasis on most , delay payment can cost as late payment fee , so when payment get over due , interest needs to be charges in order to get payment sooner, this module does perfect job this payment over due method , automatically calculate interest on overdue payments this apps apply financial charges on overdue invoices. When your invoice is validated and overdue than everyday/monthly it automatically updates the interest/penalty of invoice based on interest rate assigned on payment terms configuration.calculation of invoice will be done based on invoice due date. The Interest will be calculated on the draft invoice only.
Set Payment Term
This is the details example for monthly payment term.
This is the details example for daily payment term.
User with officer rights configuration
This is the user with sales officer rights. User with this rights can reset the details of interest rate.
Monthly interest example for the officer
Daily interest example for the officer
User without officer rights configuration
Warnings
Warning on updating montly invoice twice or more a month.
Warning on updating daily invoice twice or more a day.
User with no sale office right will not able to see reset button in the invoice.
After validate invoice user can only see update button.
As the invoice moved to the open state user can only able to see update button,reset button will become invisible.
Here you can get updated value of interest and amount.
