Apply Late Fees - Calculate Interest

You can set up broadly how late fees or interest charges are added to invoices by modifying the settings Charge Interest How, Days After Invoice Date To Charge Interest, Invoice Interest Rate per Month, Invoice Past Due Service Charge, and Minimum Interest Charge in Admin -> Billing -> Company Options -> Defaults -> Invoicing.

Charge Interest How

• Apply To Current Invoice - Interest charges will be added to and maintained on the late invoice itself.
• Create New Interest Invoice For Each Invoice - A new invoice will be created with the interest charges amount for each late invoice.
• Create New Interest Invoice For Each Customer - A single new invoice will be created for each customer with interest charges for all outstanding invoices.

The number of days unpaid after the invoice date to start charging interest on invoices.

Invoice Interest Rate per Month

This value will be used as the company default monthly interest rate to charge when applying interest charges to invoices (Income -> Payments -> Calculate Interest). This can be overridden per customer by selecting a value for Invoice Interest Rate Per Month on the customer edit page.

Invoice Past Due Service Charge

This value is a flat amount to add to past due invoices when calculating interest charges via Income -> Payments -> Calculate Interest.

Minimum Interest Charge

This is the minimum amount of interest to charge if an invoice is eligible to have interest charges added for the month. For example, if this value is set to 5, and the interest charges for the invoice would only amount to 3.50, then the interest charge for the month will be set to the minimum of 5.00.

You can set specific interest rates per customer by using the Invoice Interest Rate per Month setting under Invoicing -> Additional when editing a customer. Add new rates to the select box by clicking the Add button next to the field.

If you don't want to charge interest for particular customers, set the Charge Interest? setting to No under Invoicing -> Additional when editing a customer.

Add interest charges to invoices by going to Income ->Payments -> Calculate Interest. 

If you only want to charge interest for the current past-due period and not prior months, be sure to check the box labeled Skip Previous Months Interest Charges.

The system will provide a preview of the invoices that will have interest charges assessed. Check the box next to invoices that should have interest charged. Click the box at the top of the Charge Interest column to include all invoices. Click Save when ready to officially add interest charges.