## 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.

Watch the video: [YouTube video player](https://www.youtube.com/watch?v=QE5vppHmUnM)

## Enable late fees

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

![](latefeestarter.png)

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

![](feelate.png)

### Select which invoice to apply late fees to

You may select whether you want late fees applied to the same overdue invoice, or to a new separate invoice.
When late fees are newly enabled, this setting automatically sets to generating new invoices for late fees.

1. Go to Settings
2. Select ==Features==, then search for **"Late Fees"**
3. Select an option for the **Which invoice should the late fee be added to?** setting

![](./late-fees/latefee-on-new-invoice-setting.png)

When viewing a late fee invoice in ChargeOver, you can see which overdue invoice it was created for.

![](./late-fees/latefee-invoice.png)

### 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 the blue link that says "**more advanced options"**

![](latefeeex.png)

3. Check off the **customer is exempt from late fees** checkbox

![](checkboxlf.png)

4. ==Save== your changes

### 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`