Enable the checkbox in payment term configuration to get the Interest calculation in Overdue invoices for the selected payment term. And set the values required for interest calculation, and the account for interest jornal entries can be changed from here. This is the details example for immediate payment term with daily period based interest.

After the payment configuration we can use that payment term in invoice creation. Also set the invoice details ,use the update interest button to calculate.

Here you can get updated value of interest and amount.

The interest details are included in new invoices.

You can also enable this automatic script for automatic interest update.

Warning on updating invoice twice or more in a selected interest period.