Balancer makes it simple to calculate the interest due on an intercompany loan. Once you have configured the interest rate, Balancer will calculate the amount due in any given month by calculating the interest due daily, taking into account any changes in the loan balance.

Expand a loan on the dashboard and choose the "Edit interest setting" button. This is also available on the loan details page.

This will show you a screen like this with three options:

By default, balances have no interest applied - that is to say, 0% rate from the Group's start date:

Variable gives you more fine-grained control over the interest rate. Each line represents a change in the interest rate, and we will apply that rate from the given date onwards. In the example below:

Once you're happy, hit Confirm and the page will update to reflect the interest due

You can post your interest adjustments directly into Xero.

You can either select 'Invoice [Xero org name] for interest' or 'Add interest to loan balance'.

Select 'Invoice [Xero org name] for interest' to post as Invoice and Bill.

Select 'Add interest to loan balance' to post as Journals.