How to configure interest charges on overdue invoices using Payment Terms in Metro Accounting System?

In Metro, Payment Terms by default do not support automatic interest charges on overdue invoices. However, you can manually configure or automate interest on overdue payments using a combination of methods:

1) Go to the "Accounting" module by clicking on its icon in the main dashboard or using the application menu.


2) Inside the Accounting module, navigate to the "Configuration >> Payment Terms."


3) Click on "Payment Terms" to access the list of available payment terms.

4) To create a new payment term, click on the "Create" button.


5)  The Payment Terms creation screen in Metro, where you define how and when a customer must pay their invoice.

Header Section

  • Title: Payment Terms / New – You're creating a new payment term rule.

  • Buttons:

    • Save: Saves the new payment term.

    • Discard: Cancels creation and discards unsaved data.


Form Fields Explained

🔹 Payment Terms (Name Field)

  • This is the name of the payment term.

  • Example: "30 Days", "50% Now, 50% After 30 Days", "Net 45", etc.

  • You should enter a meaningful name that reflects the due conditions.

🔹 Company

  • Select the company this payment term applies to (multi-company support).

  • In your example: Metro Group Pte Ltd.

🔹 Interest on Overdue Invoices.

This is a custom or advanced enterprise field allowing automatic interest calculation.

Options Explained:

FieldDescription
Checkbox: Interest on Overdue InvoicesEnables the interest feature for this payment term.
Type (Simple Interest)Defines the type of interest. (Daily, Weekly and Monthly)
Frequency (Daily)Defines how often interest is calculated — options likely include Daily, Monthly, etc.
PercentageAnnual or daily interest rate. For example, if you want 18% annual, and it's set to daily, you'd enter 0.05 per day (18% ÷ 365).
Interest BasisDefines if the interest is calculated on:
  • Tax Inclusive: Includes taxes in the interest base.

  • Tax Exclusive: Excludes tax.
    | Account for Interest | Select the accounting ledger where interest income will be posted (e.g., “Interest Income”).

Now, the Payment Terms configuration screen in Metro, but with an enhanced or customized module that supports automatic overdue interest on invoices — a feature not available in standard Metro. This looks like a custom module or enterprise feature for applying simple interest on overdue payments.



Terms Section

Defines the base payment schedule.

FieldDescription
Due TypeBalance: 100% of invoice value due under this term.
Value0.000000: Placeholder value; will allocate full balance.
Number of Days0: Payment is due immediately (adjust as per policy).
OptionsDays after the invoice date: Sets when payment is due.
Day of the MonthOptional – leave 0 if not using specific calendar days.


6) Once you've entered all the necessary details, click the "Save" button to create the new payment term.


To apply Overdue Interest charges on Invoices in Metro, you can manage this using the Follow-up Levels under Accounting. However, Metro Accounting System does not natively auto-calculate overdue interest. Click Here

To get more details, how to configure interest charges on overdue invoices using Payment Terms in Metro Accounting System, please do contact us at support@metrogroup.solutions