Late fees are charges imposed for missing payment deadlines. They encourage timely payments, compensate for delays, and help maintain cash flow. If you miss a due date, a late fee is added to your payment, typically as a fixed amount or percentage.
To create late fee profiles to an invoice, follow these steps:
On the dashboard or main menu, locate and click on the "Late Fees" tab.
After clicking on "Late Fee Profiles," you will see a list of existing late fee profiles if any. To create a new one, click on "Add New" button.
You will be directed to a form where you need to provide the following information:
Name: Enter a name for the late fee profile. This name will appear as an item on the invoice.
When should the first late fee apply?: Specify the number of days after the invoice becomes past due when the first late fee should apply. Use the "[Enter days]" field to enter the desired number of days.
Recurring late fee - If enabled:
- How often should additional late fees be applied?: Choose the frequency at which additional late fees should be applied. You can select from options like daily, weekly, etc. This is done using a dropdown menu.
- How many times should we send this invoice?: Decide how many times this invoice should be sent. You can either input a specific number of days or check the checkbox for "infinite" if you want the invoice to be sent repeatedly without a set limit.
Late Fee Type: There are two types to choose from:- Percentage (%): If you want the late fee to be calculated as a percentage of the total invoice amount.- Flat ($): If you want the late fee to be a fixed amount.
Amount: Enter the late fee amount, either as a percentage or a flat fee, depending on your selection in the previous step.
After filling out all the necessary information in the form, review it for accuracy.
Click on the "Save" button to create the late fee profile.
That's it! You have successfully created a late fee profile in InvoiceQuick, specifying when it should apply, how often, and the type and amount of the late fee. This profile will be available for use when generating invoices.