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In an ideal world, all your customers pay you on time. In the real world, however, you need a mechanism to encourage your defaulting customers to pay you on time. One best, proven mechanism to ensure timely payment is – charging late fees on invoices. More often than not, the complexities involved in computing and managing the late fees keeps you away from using it.

Well, that’s no more the case! With Zoho Invoice late fee calculation on invoices can be completely automated and managing it is a breeze. Let’s quickly see how to configure late fees for an invoice, but before getting into the configuration details, let’s take a look at their relationship-

  1. You can configure as many late fees as you want
  2. While creating/editing an invoice you can associate a late fee to it.  Whenever there is a delayed payment for this particular invoice the corresponding late fee formula will be applied.

Late fees configuration:

Configuring late fees is simple and it just has the following four fields-

Late Fees Settings
  1. Name: Unique name to identify the late fee, e.g. “2-percent-weekly”, “10-dollar-monthly” etc.
  2. Type: Should it be calculated as a “% of the invoice” or is it going to be a “flat fee”.
  3. Rate: Specify a flat fee or a percentage, based on what you have specified for the “Type” field.
  4. Apply: The frequency, as to how often the late fee has to be calculated and applied to the invoices.

Associating late fees to an invoice:

While creating or editing an invoice, just select the appropriate late fee in the “Late Fees” field as shown below-

Associating late fees to an invoice

Hope you find this feature useful and it comes handy whenever your customers delay their payments for your invoices.  Try it now and share your comments with us.

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  1. don't buy if you can't pay

    You know if my suppliers would let me pay whenever, I would allow my customers the same “option”. But in the real world everyone needs to pay their bills on time. If not there needs to be incentives such as late fees and/or interest.

  2. don't buy if you can't pay

    You know if my suppliers would let me pay whenever, I would allow my customers the same “option”. But in the real world everyone needs to pay their bills on time. If not there needs to be incentives such as late fees and/or interest.

  3. David

    Who came up with this? If you ever want to see your customers again, dont use late fees!!

  4. David

    Who came up with this? If you ever want to see your customers again, dont use late fees!!

  5. Leon Quinn

    Its a great feature, thanks Zoho and I’ve often thought of using it as I have a lot of trouble getting paid but in the ‘current economic climate’ I think if you up a person’s bill you will just slow down payment even further!!

  6. Leon Quinn

    Its a great feature, thanks Zoho and I’ve often thought of using it as I have a lot of trouble getting paid but in the ‘current economic climate’ I think if you up a person’s bill you will just slow down payment even further!!