How do I add interest without creating an operating balance?

January 30, 2017 no comments

How do I add interest without creating an operating balance?


I’ve been manually adding interest on my invoices every month (and I would love for a feature that automatically calculates this because it makes billing take three or four times longer than it should) however I have found that if there is a payment on the invoice the system deletes the payment and creates an operating retainer and then I have to go back and re-apply the operating retainer to my invoice.  This is a pain, but not in itself a problem – until I run income reports and it shows that a single client has paid 1,200 that month when it was actually paid four months ago.  Since the payments are essentially removed I now have to manually go through all of our payments for the month, remove the charges that didn’t actually occur that month, and then I have to manually calculate income and profit.


Is there an easier way to do this or a quick fix that I’m not aware of?  I tried adding interest as a soft cost instead but that made calculating interest too complicated.  Can you alter the billing screen so that late fees/discounts/finance charges can be applied without erasing prior payments? Even better – do you have a timeline for auto-calculating interest?

Lynne answered

    Is it possible when applying interest to a payment received to have that allocation go to Interest Income rather than to the ‘client operating funds’.  at the moment I have allocated interest received to the ‘client operating funds’ as there is no other option available that I can find.  Hopefully it will not be long before there is a solution provided.

    JD Robinson edited comment on answer

    @JCoy – I have a quick work around solution that may work for you that my firm uses. We automatically charge a 5% overhead fee on all time and expense cards. This is added automatically to each invoice after you create this setting in your setup tab. Hope this helps! It’s much easier than trying to add an exact interest rate.

    Esther Peralta edited answer
    David Seltzer

    Hi and thank you for the question.  When you are applying operating retainers, you can apply a prior date on the payment to match the original date.

    I will put in a request on your behalf to allow fees/discounts etc to be added to invoices without erasing invoices.

    As for the auto-calculating of interest, that feature  is in the pipeline and estimated to be added in the second quarter

    David Seltzer answered