To add a late fee schedule, complete the following steps:
- If you have defined a custom reminder schedule, select the group of customers to whom you want this late fee schedule to apply from the drop down list at the top right of the Late Fees screen.
- Select +Add Late Fee.
The Add/Update Late Fee window opens.
- Enter the number of days past the invoice due date that you want to have the initial late fee assessed in the Days Past Due field.
- Define the Recurring Fee Schedule by entering a number of days to indicate when the late fee charge will recur if the invoice has still not been paid after the initial fee is charged. For example, if you enter 30, a second late fee will be added 30 days after the original late fee. 60 days after the initial charge, a third late fee will be added. The late fee recurs until the invoice has been paid.
- Choose what Fee Type you want to use by selecting one of the following from the drop down list:
- Late fee amount - charges a flat fee regardless of invoice amount
- Late fee percentage - charges a fee based on a percentage of the late invoice
- The higher of the two - calculates whether the fee you entered or the percentage of the specific invoice is higher and charges that amount
- Both late fee & percentage - calculates the percentage of the specific invoice, adds the fee you entered, and charges the combined amount
- Enter the Late Fee Amount to indicate the flat fee charged for late invoice payments (when you use any but the late fee percentage Fee Type).
- Enter the Late Fee % to indicate the percentage of late invoices to charge (when you use any but the late fee amount Fee Type).
- Select Save Late Fee.