Interest on Overdue Invoices
by BeyonData Solutions Private Limited https://www.beyondatagroup.com$ 22.85
Interest on Overdue Invoices
Automatically calculates interest on overdue invoices and sends payment reminders to customers, helping
businesses improve collections and cash flow.
Key Highlights
Interest on Overdue Invoices
Smart Interest Automation
Automatically calculate overdue interest based on configurable Daily or Monthly periods.
Automated Payment Follow-Ups
Send reminder emails before and after invoice due dates without manual intervention.
Accurate Outstanding Balance Tracking
Always display the latest payable amount, including accrued interest charges.
One-Click Interest Update
Recalculate and refresh interest amounts instantly from the invoice form.
Overview
Interest on Overdue Invoices
his feature enables Interest on Overdue Invoices helps businesses automatically calculate and apply interest charges on overdue customer invoices. Configure interest rates directly on payment terms and choose whether interest should be calculated daily or monthly. The module also sends automated payment reminder emails before and after the due date, ensuring customers stay informed about outstanding balances. With manual interest recalculation options and automated overdue management, businesses can improve cash flow and reduce payment delays.
SCREENSHOTS
Configuration
Navigate to : Accounting -> Configuration -> Payment Terms
Open or create a Payment Term and configure the following fields :
1. Interest Rate (%) : Enter the percentage of interest that should be applied to overdue invoices.
Example : If the Interest Rate is set to "1%", the system will calculate interest based on the selected interest period.
2. Interest Period : Select how often the interest should be applied.
2.1 Daily : When "Daily" is selected, the configured interest rate is applied on a daily
basis to the outstanding invoice amount.
2.2 Monthly : When "Monthly" is selected, the configured interest rate is applied on a monthly basis to the outstanding invoice amount.
Workflow Example :
1. Create a Sales Order
2. Set the Payment Term to "Immediate Payment"
3. Confirm the Sales Order and complete the delivery process
4. Create and post the customer invoice
5. Leave the invoice unpaid
Daily Interest Example
Assume the following configuration
Payment Term: "Immediate Payment"
Interest Rate: "1%"
Interest Period: "Daily"
If the invoice remains unpaid after its due date, the system automatically calculates and
applies interest to the outstanding invoice amount on a daily basis according to the configured
rate.
Monthly Interest Example :
Assume the following configuration:
Payment Term: Immediate Payment
Interest Rate: 10%
Interest Period: Monthly
If the invoice remains unpaid after its due date, the system automatically calculates and
applies interest to the outstanding invoice amount on a monthly basis according to the
configured rate.
Automatic Payment Reminder Emails :
To help customers make timely payments, the system automatically sends payment reminder emails
for overdue invoices.
Reminder emails are sent:
- Before Due Date
2 days before the due date
1 day before the due date
After Due Date
1 day after the due date
3 days after the due date
7 days after the due date
These reminders are sent regardless of whether the interest period is configured as Daily or
Monthly.
Additionally, each reminder email includes the current outstanding amount, including any
applicable interest charges.
* Update Interest Button
A new "Update Interest" button is available in the Amount Details section of the invoice.
his button allows users to manually recalculate and update the interest amount based on the
current outstanding balance, configured interest rate, and interest period (Daily or
Monthly).
When clicked, the system automatically recalculates the latest applicable interest and updates
the invoice amount accordingly.
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| Availability |
Odoo Online
Odoo.sh
On Premise
|
| Odoo Apps Dependencies |
•
Invoicing (account)
• Discuss (mail) |
| Lines of code | 368 |
| Technical Name |
bd_overdue_invoice_interest |
| License | OPL-1 |
| Website | https://www.beyondatagroup.com |
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