This guide explains how to set up late charges and configure the calculation of late interest in the system. Follow the steps below to ensure accurate interest computation based on your company’s payment terms.
Set up late charges:
Go to housekeeping, general Setup, default values, pay terms.
Go to housekeeping, late charge setting, and select Yes.
Set the minimum to 0.00, so even 1 cent of late charges will be charged.
Calculations of late charges:
Calculation of late interest in the system is based on the total outstanding invoice amount for each charge. Example:
Late charges = TA * Rate * (OD/365)
* TA = Total outstanding invoice amount
* OD = Overdue Days
* Rate = Interest rate per year (in %)
Late charges can be printed in Reports, Invoice Debit Note.