A Late Payment Fee is a penalty you impose on customers when their invoices remain unpaid a certain number of days after the due date. The Late Fee amount (or percentage) will be noted at the bottom of the invoice. Once the late fee is triggered, it will be included in the invoice Adjusted Total Due calculation on all invoices views.
Late Payment Fees can be configured for both one-time invoices and for invoice schedules. If used with an invoice schedule, the fee is calculated based on the Due Date for each individual invoice generated by the schedule.
Follow the steps below to configure a Late Payment Fee for either a one-time or recurring invoice.
On the send new invoice screen, locate the Charge a late payment fee line.
Select
the “Yes” radio button.
NOTE: The default setting for the Late Payment Fee is “No” which turns the option off for
the invoice or schedule.
The Late Payment Penalty Fee configuration fields appear below the radio buttons.
Select the type of penalty fee you would like to charge from the drop-down box.
“Percent” is the default. This setting calculates the fee based on the invoice Total Due.
“Flat Amount” is the alternate selection. This enables you to charge a set penalty regardless of the invoice amount.
Enter the exact penalty fee you would like to charge in the Apply a field.
For a Percentage enter the amount of the invoice total you want to charge. For example to charge a two and a half percent fee, enter 2.5 (do not enter .025).
For a Flat Amount enter a dollar value (without the $-- i.e. enter 5.00 not $5.00).
Enter the number of days after the invoice Due Date to begin charging the late fee in the days after field. (For example, if the invoice is Due on May 1, and you enter 10 days, the late fee will appear on May 11.)
Continue with configuring the rest of your invoice or invoice schedule.
Example Invoice with Late Payment Penalty configured to charge a 10% fee if the invoice remains unpaid 15 or more days after the due date.
