---
title: "Charge interest"
slug: "charge-interest"
tags: ["Area - Accounting", "Focus - Construction", "Focus - Service Replacement", "Role - Accountant", "Role - Admin", "Type - Commercial", "Type - Residential"]
updated: 2026-03-27T18:26:29Z
published: 2026-03-27T18:26:29Z
---

> ## 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)