The Late Payment Fees tab helps you track and manage penalty charges applied to customers who pay their invoices after the due date.
Late payment fees serve two important purposes: they encourage customers to pay on time and compensate your business for the cost of delayed collections.
You can set up fees as either fixed amounts or calculate them as a percentage of the overdue invoice amount.
To create a new late payment fee, click the New Late Payment Fee button.
The Late Payment Fees tab displays the following information:
The date when the late payment fee was applied. This date is calculated based on the invoice due date plus any grace period you have configured.
The customer being charged the late payment fee. Click the customer name to view their full record in the Customers tab.
The reference number of the overdue sales invoice. Click the reference number to view the original invoice and its payment history.
The amount of the late payment fee. This amount is automatically added to the customer's outstanding balance and will appear on their statement.