OVERVIEW
Interest can be applied to different sections of the invoice. For example, you could apply interest to:
The sub-total of the entire invoice (most common option, for situations where you would like to apply interest on an overdue invoice)
Only time entries, but not expenses
A custom dollar amount
To add interest to an individual invoice:
Open the Invoice Editor (for new invoices or existing invoices).
Scroll down on the page to view the Adjustments block (pictured below).
Click on Add Adjustment.
Let's take a look at the different options you have when adding interest to an invoice...
Item - Choose Interest from the Item dropdown menu.
Applied To - The Applied To dropdown menu will let you choose Flat Fees, Time Entries, Expenses, or Sub-Total. This is how you can determine which portions of the invoice to apply the interest to. Maybe you'd like to add interest to only time entries but not expenses - simply choose Time Entries for this column. To apply interest to expenses but not time entries, choose Expenses. To apply interest to the entire invoice (most common option), choose the Sub-Total option.
Type - The Type dropdown menu will let you designate the interest as a Percentage or Dollar Amount. The Percentage option is for situations like "I'd like to apply 15% interest to an overdue invoice". The Dollar Amount option is for situations like "I'd like to apply a $300 late payment penalty to the invoice".
Notes - Enter any notes for the interest line item as you'd like it to appear on the invoice itself. This is useful for describing the nature of the interest (for example, you could write something like "15% late payment fee on an overdue invoice".
Basis - The basis column is used when you are setting up Percentage based interest. Basis designates the amount that the interest percentage will be applied to. For example, if you choose to apply a Percentage interest to the entire invoice, the basis column would be populated with the invoice sub-total. The interest amount would be calculated based of the basis and designated percentage. You can edit the Basis column whenever you'd like.
Percentage - If you are adding interest as a Percentage line item, specify the percentage you'd like to add.
Amount - This column shows you the final interest dollar amount for the line item. If you are applying a Percentage interest type, the Amount column is not editable (it is calculated from the Basis and Percentage column). If you are adding Dollar Amount interest, the Amount column is where you can designate the dollar amount you'd like to apply.
To add interest on a Batch of Invoices:
Create the Batch of Invoices that you would like to add interest to. Learn more about Batch Billing HERE.
The adjustments section (pictured below) offers the ability to add an interest adjustment based on balances forwarded (unpaid balances) or any other section of your invoices of your choosing.
To add interest on already created Invoices:
Navigate to the Billing tab > Invoices and then select the check boxes next to the invoices that you would like to add interest to. You can also use the select all check box at the top of the list. Next, click on the 'Actions' button and select Adjustments. This will prompt a new pop-up window to appear where you can define the specifics on the adjustment. In this situation we'll select the Adjustment Type to be 'Interest' and then fill out the other details pertaining to this adjustment. Finally, select save to apply this interest to all selected invoices.