Late Fees

Overview

You can configure ChargeOver to automatically charge late fees for overdue invoices.

When a late fee needs to be added to an invoice, per the schedule you configure, the late fee is added as a new line item on the existing invoice.

Enable late fees

1. Click the gear icon in the top right corner of your page to get to Settings
2. Select "Add-Ons" from the menu on the left and then "More Add-Ons"
3. Find "Late Fees" on the list, click "View Settings"
   • Select "Yes" from the dropdown and the late fee settings will be revealed

Late fees will automatically be added to invoices based on the schedule you configured.

Exclude a specific customer from late fees

1. Find the customer in ChargeOver that you want to exclude from late fees
2. Click on the Edit tab and select "More Options"

3. Check off the Customer is Exempt from Late Fees checkbox

4. Click the Update Customer button

How late fees are calculated

Late fees are added as a new line item on the existing, overdue invoice (the existing, overdue invoice will be updated to reflect the addition of a late fee).

For flat amount late fees (for example, a $10.00 late fee), the late fee will be added to the invoice on the schedule you dictate.

For percentage-based late fees, the fee is calculated as a percentage of the overdue balance on the invoice, minus any other late fees (that is, subsequent late fees are not cumulative on top of prior late fees). For example, let's start with an invoice with a prior late fee:

• Original invoice total, excluding any late fees: $100.00
• Prior late fee: $10.00
• Current invoice total: $110.00

If you assess a new late fee of 10% against this invoice, the new late fee amount is calculated only against the $100.00 balance of the invoice.

• New late fee: ( $100.00 * 10% ) = $10.00 late fee

So after this new late fee, the invoice will look like:

• Original invoice total, excluding any late fees: $100.00
• Prior late fee: $10.00
• New late fee: $10.00
• New invoice total: $120.00