---
title: "Charge interest"
slug: "charge-interest"
tags: ["Area - Accounting", "Focus - Construction", "Focus - Service Replacement", "Role - Accountant", "Role - Admin", "Type - Commercial", "Type - Residential"]
updated: 2026-07-11T16:02:57Z
published: 2026-07-11T16:02:57Z
canonical: "help.servicetitan.com/charge-interest"
stale: true
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.servicetitan.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Charge interest

## Overview

You can charge interest to customers who have an outstanding balance. Charging interest automatically creates an adjustment invoice. Before you begin charging interest, you’ll need to create a task code item in your pricebook and add an invoice type for interest charges.

## 

---

### 

#### Who uses this feature

- Administrators, office employees, managers, accountants, and bookkeepers
- Applies to all business types
- Applies to all trades

#### Feature configuration

- Account configuration is required to use this feature. Please contact [Technical Support](http://go.servicetitan.com/ask) for details.

## Things to know

- This article goes through the legacy workflow of charging interest. For more on charging interest using the Invoices module, see [Charge interest using the Invoices module](/v1/docs/charge-interest-using-the-invoices-module).
- When an adjustment is created, the date on the original invoice does not change. The date on the adjustment invoice is the date the adjustment is created.
- The outstanding balance is not linked to the payment terms set on the invoice.

## Set up a task code item in the Pricebook

## 

To charge interest, you first set up a task code item in the Pricebook.

1. Go to the navigation bar and click **Pricebook >** **Services**.
2. Click **Add Service**.
3. In the Details tab enter service details. ![Form section for adding a service with fields for code, name, and description.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/charge-interest-image-98d59ozh.png)

> [!NOTE]
> **Note:** You can leave the Price field as $0.00.
4. When you are done, click **Save**.

## Add an invoice type for interest charges

After you have a task code set up, you can build an invoice type for interest charges.

To build an invoice type:

1. Go to the navigation bar and click **Settings ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/icon-gnav-settings-inactive.png)** .
2. In the side panel, click **Invoicing >** **Payment and Invoice Types**.
3. Under *Invoice Type*, click **Add**. ![User interface showing invoice type options with buttons to add, activate, and deactivate.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/charge-interest-image-g5mm2a5j.png) The *Invoice Type* pop-up opens.
4. Enter the *Name* of the invoice type.
5. Click **SAVE**.

## Charge interest

To charge interest:

1. Go to the navigation bar and click **Accounting**.
2. Click **the Select a Batch** dropdown and select *Create a new batch*. ![User interface showing options to create a new batch in a software application.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/charge-interest-image-j460jsfg.png) *Create a new batch* opens.
3. Enter a *Batch Name* and select a *QuickBooks Company File.*
4. When you’re done, click **Save**. A batch number is automatically assigned to the batch. You can find the batch number and the batch name on the *Select a Batch* field. ![Interface showing Batch #293 new selection and cash total of $12,351.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/charge-interest-image-uiaxiaxh.png)

> [!NOTE]
> **Note:** You can also click Select a Batch and select a batch from the dropdown.
5. Once an open batch is selected, click **Charge Interest. ![User interface showing options to charge interest or apply payment for a batch.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/charge-interest-image-foh95ku0.png)** The *Charge Interest* screen opens.
6. Enter interest details:
  1. **Interest Rate:** Percentage of interest that will be billed, as a decimal. For example, 10% would be 0.10
  2. **Task Code:** Service created that acts as the line item for interest.
  3. **Inv. Type:** Select the invoice type created that pertains to interest.
  4. **Invoice Date:** Date that appeara on the adjustment invoices. ![Form for charging interest on invoices with fields for rate, type, and date.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/charge-interest-image-jtxefe1a.png)
7. By default all invoices with an outstanding balance in the batch are selected. Unless the invoice is less than a month old or belongs to a customer who is exempt from being charged interest. ![List of invoices with balances, including customer details and completion dates.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/charge-interest-image-o2488kjx.png) Any invoice can be excluded from this batch by unchecking the box next to the invoice.
8. When you’re done, click **Create Invoice Adjustments**. New invoices with interest charges are generated.

> [!NOTE]
> **Note:** The original invoice numbers don’t change, nor will any other information on the invoice.

You can find the invoices where you charged interest in the *Accounting* section under *Batched*.

![Invoice management interface showing batched invoices and payment options for technicians.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/charge-interest-image-zp746h9j.png)

## Exempt customers from interest charge

## 

1. [Go to the Customer Record](/v1/docs/use-search-in-servicetitan#search-for-records).
2. Click **Edit ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/icon-edit.png)** .
3. Select **Do not charge interest fee**. ![Checkbox options for service preferences, highlighting interest fee and member savings selections.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/charge-interest-image-skindxil.png)
4. Click **Save**.

## Want to learn more?

## 

- See [Manage the Accounting section](/v1/docs/manage-the-accounting-section)

A batch, or invoice batch, is a set of invoices that have been audited and are ready to post. You will use the Invoice screen in ServiceTitan to create invoice batches. On the Invoice screen, you'll have access to unbatched and batched invoices.

[Learn more →](https://help.servicetitan.com/docs/servicetitan-glossary) · [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview)

The top-level account in ServiceTitan representing a property owner or account holder, containing all locations, jobs, and history.

**What it does:** Serves as the single source of truth for all customer interactions, history, and financial data.

**Also called:** Customer account, Client record

**Tags:** Core

[See the full glossary →](https://help.servicetitan.com/docs/glossary-overview)