OfficeRnD gives you the option to set up late fees to be automatically generated when an invoice has been overdue for a set number of days. The late fee gets applied to the next invoice that's issued for the customer, and not the current one.
How do I set up Late Fees?
Before you set up your late fees, you will need to create a zero-priced one-off fee to use as the basis of the late fee. Late fees will be recorded under the account of that billing plan for reporting purposes. If you are not familiar with setting up billing plans, please take a look at our help article on the subject - click here to see it.
- Go to Settings/Billing -> Invoicing tab.
- Look for the section labeled We'll generate late fees.
- Enable the automatic late fees by clicking on the checkbox labeled Automatically. More fields will appear after you do that.
- Select the plan you created to be used for the late fees in the drop-down that appears.
- Select the type of calculation for late fees that you'd like to use:
Generate Late Fee Once - Choosing this option will cause a single one-off fee of X% of the overdue invoice's Total after a set number of days the invoice's Overdue date.
- Generate Late Fee Daily - Choosing this option will cause a one-off fee of X% of the overdue invoice's Total to be generated every that passes after the invoice's Overdue date. That will lead to a higher quantity of the same one-off fee.
- Select the percentage of the Overdue invoice that you would like to set as the base of the late fees that will be generated.
- Select how many days the system should wait after an invoice is Overdue before it generates a Late Fee.
- Hit Update at the bottom of the page to make sure your settings are saved.
Note: Rules for late fees are applied the moment an invoice becomes overdue. If the rules for the late fees are changed after an invoice has become overdue they will not take effect.
In order for the new rules to take effect, you need to go to the invoice page, disable the late fees option for the invoice and enable them again.