At times, you can include a late fee or finance charge on your invoices. In such cases, you will receive a payment for the invoice amount plus that late fee. Typically, companies calculate late fee or finance charges on the last invoice and the clients pay it with the last payment. In some cases, companies prefer to calculate late fee on each outstanding invoice and clients must pay it each time.
In Web Suite, you can calculate late fee on the outstanding balance or invoice amount based on a specified date. For example, if you bill a client for $5000 and he makes a $2500 payment within the payment term, but is late for the second payment of $2,500, Web Suite will calculate the late fee on the outstanding balance of $2500 and not the entire principal amount of $5000. It takes into account payments applied to invoices and late fees before calculating the new late fee on the unpaid balance.
Late fee invoices print on selected
invoices formats and statements. They age like any other invoice and print
on aging reports. You can write off all or part of a late fee invoice
and apply payment to it.
When you create a late fee invoice in the Invoice Review screen, Web Suite generates a manual invoice internally with an invoice number same as that of the actual invoice but with ‘LF’ appended to it. The first late fee invoice will have the same invoice number but with a prefix of LF, and any subsequent late fee invoices will have initials LF1, LF2 and so on.
You can define aging at the global level and, payment terms and interest charges at the individual client/project level. Based on these settings, Web Suite calculates late fee when you create a late fee invoice in the Invoice Review screen. You can customize its label in the Custom Labels screen.