Interest on overdue invoices, explained before it hits the ledger

Build interest and penalty policies with grace periods, caps and escalation tiers, preview exactly who gets charged what in a dry-run wizard, and see the full days-overdue, rate and principal breakdown behind every figure — all without forcing a posting until you are ready.

The problem

Finance teams calculate interest and penalties on overdue invoices by hand, invoice by invoice, spending hours every month on error-prone arithmetic. Most tools either force every charge straight to the ledger with no preview, or show a number with no explanation of how it was reached, so accountants cannot trust, defend or even see the figures before they commit.

The solution

Build a policy once — percentage or fixed, simple or compound, daily, monthly or yearly — with grace periods, caps and escalation tiers, then override it per customer. Run the dry-run wizard to preview exactly which invoices qualify and what they will be charged, review the full breakdown, and post only when you confirm.

Capabilities

Everything a finance team needs to charge overdue interest with confidence

Every capability below is implemented in the module.

01

Policy builder with per-customer override

Set one global default interest or penalty policy, then override the rate, cap or placement for individual customers such as VIP accounts or negotiated terms.

02

Percentage, fixed, simple or compound

Choose a percentage or fixed charge amount, and calculate it as simple or compound interest to match the contract or accounting policy you operate under.

03

Daily, monthly or yearly intervals

Calculate interest on the cadence your payment terms actually use, so every figure matches what was contractually agreed.

04

Grace periods, caps and escalation tiers

Give customers a grace period before any charge applies, cap the charge per invoice or per customer, and escalate the rate the longer an invoice stays overdue.

05

Forecast mode with no GL posting

See accruing interest on the invoice and on the customer record in forecast mode, with nothing posted to the general ledger until you explicitly confirm.

06

Transparent calculation breakdown

Every charge stores the days overdue, rate applied, principal and effective dates behind the figure, so it can be checked, explained and defended.

07

Draft-first review, flexible posting

Charges start in draft, move to confirmed, and post only when you choose — as a line on the original invoice, a separate penalty invoice, or a draft debit note.

08

Dry-run batch wizard and scheduled cron

Preview and generate charges across many overdue invoices at once from a wizard filtered by due date, customer or policy, with a daily cron for automatic recalculation and full multi-currency support.

09

Reminder emails and revenue reporting

Send a branded reminder email for any charge, with an option to skip weekends when scheduling, and track collection effectiveness and revenue impact from a pivot and graph dashboard.

Workflow

How it works

1

Configure a policy

Set percentage or fixed rate, simple or compound interest, calculation interval, grace period, caps and escalation tiers, then override per customer where needed.

2

Preview with a dry run

Run the Generate Charges wizard to see exactly which overdue invoices qualify and what each customer will be charged before anything is created.

3

Review the breakdown

Check the draft charge's days overdue, rate, principal and effective dates, then confirm once you are satisfied it is correct.

4

Post and track

Post as a line on the invoice, a separate penalty invoice or a draft debit note, then monitor collection and revenue impact from the dashboard.

Questions

Frequently asked

No sales fog. If your question isn't here, email us and we'll answer it the same way.

No. The default policy runs in forecast mode, showing accruing interest on the invoice and customer record with nothing posted. Charges move through a draft-first review before you choose to post them.

Get the app

Buy it on the Odoo App Store

Purchase, download and install directly from the official Odoo Apps Store — you'll always get the latest supported build.

Interest on Overdue Invoice — Forecast, Explain & Charge

Policy-driven interest and penalties with grace periods, caps and escalation tiers — forecast first with no GL posting, then post from a transparent, line-by-line calculation breakdown.

Buy on Odoo App Store