Late charges are an excellent tool to spur your customer to pay there outstanding invoices.  It is always best o take a credit card, but if you cannot then later charge of 1.5% a month or a minimum of $25.00 is an excellent tool to spur payment.  The $25.00 is actually less then the actual costs of:

  • Sending out a statement $8.50
  • 15 minute call @40.00/loaded our for your collection clerk = $10.00
  • Sending out the original invoice $8.50
  • Time value of money
  • Ties up office staff from productive work
  • Worst job in the office after folding and stuffing invoices
Total cost = $27.00 and that assumes they pay after 30 days.

You can always waive the charge and accept immediate payment.  We support both late charges on last invoice and a separate invoice for late charges to match your companies policies.  

We recommend generation of late charges as a separate invoice so that you have

  • Separate opportunity to contact customer for past due balances
  • Makes it easier to adjust off as an incentive for payment

You can always generate the late charges as part of the normal invoicing process and include it on the regular invoice.

Step by Step

Setting late percent on all sites

1. Use Admin\database utilities\ change \ tab 5 - sites

2. Select all sites

3. Use tab 4 fields

4. Populate percent late charge e.g. 1.5

5. Bulk site change

6. For those sites that you do not want to apply late charges to , simply set the penalty to zero(0)

Generating late charges

  1. Invoicing Post monthly charges
  2. Select tab "Late charges"
  3. Fill out form and post charges
    1. You can selectspecific categories of customer
    2. Balances grouping e.g. 30+, 60+ or 90+
    3. Look back period to stop posting if a late charge already exists
  4. Generate late charge invoices and distribute to customers
  5. If you want to waive the late charge you can either
    1. Delete the invoice
    2. Adjust the invoice to zero ( a must if you to end of month reconciliation with an accounting package)
    3. Pay the invoice with a posting check code "ADJ".