Why is there future-dated Interest showing on my Bill?

Objective:

  • Why are future Interest charges being added to the Bill in advance?
  • Why is Interest being charged early?
  • Why are Interest charges being displayed on the Bills with a future date?
  • Future interest charges showing on Bills
  • Client being charged interest ahead of time

Environment:

  • Clio Web App

Additional Information:

n/a

Answer:

At first glance, it might appear that interest for the next month has been accrued ahead of time. However, this would not be the case. The dates shown under the Due On column, are the due dates for the interest that has already been accrued in the previous month.

If payment is not made by the Due On date then future interest will be generated.

For example:

  • Interest accrues every 30 days
  • You have an invoice with an issue date of January 9, 2018
  • The first round of interest will be charged February 8, 2018 (30 days after the issue date)
  • The Due On date for the February interest will be March 11, 2018 because the client has up until March 11, 2018 to pay that February interest charge. 
  • If the interest is not paid by March 11, 2018, further interest will be added.
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