What is “interest” on an invoice?

Interest can be applied to an invoice in case of late payment. It becomes payable if your client fails to comply with the payment terms agreed upon in a contract or stated in a previous sales invoice.

If you have agreed on a specific late payment interest rate with your customer, you can define the interest value between 0-0.02% on the invoice. To do so, go to:

Income → Invoice Settings → Sales Invoice Interest

If you do not wish to apply late payment interest, you can simply select “Use default interest (0%)”.