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How To Add Interest to Existing Outstanding Bills

Objective:

  • Charge Clients interest on Overdue Bills
  • How to add interest to outstanding Bills
  • How to apply interest to previous Bills
  • How to add interest to previous Bill generated

Environment:

  • Clio Manage

Additional Information:

  • Clio automatically calculates and applies the appropriate Interest on all Bills daily (at midnight, when the date changes) and backdated Bills will be updated to include the correct amount of Interest when that happens.
  • Please note that interest will not accrue on Draft Bills; the Bill must be Approved first

Procedure:

This article assumes that Interest is being added to Bills after they have become overdue and that a Payment Profile was not previously assigned to a Contact, or was changed after the Bill was generated.

Set Up the Client's Payment Profile

If you have not done so already, either:

  • Create a new Payment Profile (see here)
  • Edit an existing Payment Profile (see here)

Ensure your Client has the correct Payment Profile

  1. View the Client's Contact page
  2. Under Billing information, look at the Payment Profile
  3. If required, update the Contact's Payment Profile (see here)

Record all Bill information

  1. View the Bill you wish to add Interest to
  2. Record all relevant information (in the next step we will void and recreate the Bill). This may include, but is not limited to:
    • Issue Date
    • Due Date
    • Bill Number
    • Invoice Total
    • Date Range of Line Items
    • Bill Total
  3. Download a PDF of the Bill (for reference) (see here)

Void the Bill

  1. Click on More Actions and Void the Bill (for more information, see here)

Recreate the Bill

  1. Using the information from "Record all Bill information" above, create a new Bill (see here)
    • Ensure that the Issue Date of the Bill is backdated to the original issue date, so Interest is calculated correctly.
  2. View the newly created Bill
  3. Edit the created Bill, making any required changes to match the previous Bill (see here)
  4. Approve the Bill (see here)

Clio will apply Interest to the Bill overnight, based on the Invoice's Issue Date

If you do not see interest charges appear correctly after a 24 hour period:
―Check the Issue Date and Due Date of the new invoice
―Ensure the Payment Profile is in place for the Client, and that it is set to accrue interest
More information can be found here: Payment Profiles with Interest

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