You are able to turn on late fees for past due invoices, with various options for customization.
Late fees can be turned on and configured by navigating to Invoicing, then Invoice Settings, and from the options on the side select Edit reminders/fees.
A late fee from Autobooks works as a one-time bill sent as a separate invoice. The late fee invoice will reference the original past due invoice so both you and your customer have this for record-keeping purposes.
Once toggled on, the following options are available to customize late fees:
- Enable grace period - The number of days after an invoice's due date that a customer can pay before it is considered late.
- Enable % of invoice fee - This will charge the late fee as a percentage of the amount owed on the original past due invoice.
- % of invoice: The percentage of the original invoice that will be charged as a late fee.
- Minimum late fee - This option will set a minimum amount to be charged. The late fee will be at least this amount unless the percentage exceeds this value.
- For example: a customer is past due for a $100 invoice. You have set a 3% fee with a $5.00 minimum. Since the percentage would only generate a $3.00 charge, the $5.00 minimum fee would be applied.
- Enable flat fee - This option charges your customer a set amount for any past due invoice.