Adding Automatic Late Fees

Learn how to enable late fees for overdue invoices

To enable automatic late fees, follow these steps:

1. Click > next to Billing
2. On the expanded menu, click Settings
3. Select Late Fees
4. Click 'Yes' to enable late fees, and then click Save

Once enabled, you will see additional settings that can be customised to fit your needs.

• Resend invoices after applying the late fees
  You have two options for resending invoices once a late fee has been applied:
  
  • If you select Yes, an updated invoice will automatically be sent to the customer.
  • The updated invoice will include a section showing the late fee applied.

• Apply late fee after days
  You can specify the number of days after the due date for which a late fee should be charged.
• Description for invoice
  You can modify the description that appears on the invoice to explain the late fee. This description will be visible on the invoice sent to customers.
• Apply Fixed Amount
  You can set a fixed late fee amount that will be applied to all overdue invoices.
• Apply Percentage
  Alternatively, you can apply a percentage-based late fee.
• Tax rate for late fee
  If you have taxes enabled, you will need to set the tax rate for the late fee. This option will appear only when taxes are enabled.
• Enable late fees for partially paid invoices
  You can choose to apply late fees to partially paid invoices or not.

You have the flexibility to apply a fixed amount, a percentage fee, and a tax rate simultaneously, or you can choose to fill in only one of these options.

Once you've configured your late fee settings, click Save to finalise the setup.

By setting up automatic late fees, you can ensure timely payments and maintain a consistent cash flow. Customise the settings to fit your business needs and let Class Manager handle the rest. If you have any questions or need further assistance, don't hesitate to reach out to our support team. 🙌