Late Fees - Charging Percentage of Balance

Question

Hello, 
 How can we charge a late fee for a flat 1.5% of an open balance? The percentage option on the Late Charges Tab seems to calculate on a prorated annual basis. The Interest option shows nothing in the drop down screen and is not a typable field. 
 Any assistance is grealy appreciated! Thanks!

April Dahl · Answer

Hi Matt, 
 The Late Charge Type should be Fee and the Calculation Type should be Percentage . Then enter the percent as 1.5 . 
 You'll also want to make sure that the Next Fee Date on the late charge step is for the 1st of the month. You may need to change this date by turning on Audit Setup Activity (Tools > Options) to open the field. 
 Also keep in mind that the Frequency and Repeat Factor are going to determine how often a late charge should be charged on unpaid open items. 
 If you want to use the Interest option, you will need to set up the interest rate table in Setup > Interest Rates. This is why you were not able to select anything because interest rate tables are not set up. 
 I hope that helps. 
 April

Sage Construction & Real Estate

Late Fees - Charging Percentage of Balance

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