Troubleshooting
Role: Administrators · Office employees · Managers · Accountants · BookkeepersArea: Accounting · Invoicing · Payment Terms interest settings · All business types · All trades
What you're seeing
You want overdue invoices to be charged a late fee automatically, for example a 1.5% fee for every 30 days an invoice stays unpaid. You're looking for a setting that applies this fee on its own, but you can't find one.
Why this happens
Reason 1
Interest is a manual action, not an automation.
ServiceTitan has no automation rule that applies a late fee or discount to an invoice on its own. Interest is charged as a manual action: you configure interest settings on a payment term, then run Charge Interest on the overdue invoices whenever you want the fee applied. The payment term settings control how interest is calculated (rate, frequency, grace period), but they do not charge interest by themselves. To keep late fees current, you repeat the Charge Interest action for invoices that remain overdue.
Before you start
You need access to the Accounting area and the Invoices module. You also need access to Pricebook and to Settings to complete the one-time setup below. If you don't have this access, contact your admin.
The invoice you want to charge interest on must use a payment term that has the Charge Interest option enabled and interest settings configured. If it doesn't, complete the setup steps first.
How to fix it
There's no automatic option, so set up interest once and then run Charge Interest manually on overdue invoices.
1Set up a task code item in Pricebook for interest
This task appears on the adjustment invoice that is generated when you charge interest.
On the navigation bar, click Pricebook > Services.
Click Add Service.
In the Details tab, enter the service details.
When finished, click Save.
2Create a payment term with interest settings
On the top toolbar, click Settings.
In the side panel, go to Invoicing > Payment Terms.
Select the payment term you want to add interest to, or click Create Payment Term.
Click the Interest tab.
Select the Charge interest toggle.
Select an Interest Rate:
For Flat interest rate, enter the Flat Rate amount.
For Percentage, enter the Annual Rate and select a Charge Method.
For Maximum of flat rate or percentage, enter the Flat Rate, or the Annual Rate and a Charge Method.
Select the Charge Interest Frequency. For a Flat interest rate, this is Once by default.
Enter a Grace Period in days.
Select the Task you created in Step 1 for the interest charge.
Caution: Review the LEGAL DISCLAIMER before saving interest on the payment term.
3Charge interest on the overdue invoices
On the navigation bar, click Accounting.
In the side menu, click Invoices.
Search for and select the overdue invoices you want to charge interest to.
Click Actions > Charge interest.
On the Charge Interest screen, select the date from which interest should start accruing on the outstanding balance.
Click Continue.
Review and confirm the invoices and interest fees to be charged. To remove an invoice from the list, click the Remove icon.
When finished, click Charge Interest.
✓ Done · Each selected invoice now has an adjustment invoice that includes the interest charged to the original invoice.
To keep late fees current, repeat Step 3 for invoices that remain overdue, on the cadence that matches the Charge Interest Frequency you set on the payment term. For example, a shop applying a fee for every 30 days unpaid would run Charge Interest about once a month.
Note: If you previously charged interest using the legacy Batching screen workflow, those settings do not carry over to the Invoices module workflow.
Still not working?
Contact ServiceTitan Technical Support at go.servicetitan.com/ask with:
The invoice number(s) you're trying to charge interest on
The interest rate and task code you used
The payment term applied to the invoice
What happened versus what you expected
Want to learn more?
Charge interest using the Invoices module ›
Review how to charge interest using the Invoices module.
Create payment terms ›
Review how to create payment terms.
Change payment term on an invoice or bill ›
Review how to change the payment term on an invoice or bill.