Answers to common questions about how late fees are calculated in Re-Leased, including fee types, grace periods, bank rates, and Chart of Accounts behaviour.
How are late fees calculated?
Fees are calculated on outstanding or unpaid amounts, and on amounts that were paid late. Late fees are generated per invoice, per Chart of Account (COA), and per rule. Line items with the same COA are grouped together.
How does the Flat fee (charged once) work?
The flat fee amount is charged once based on the COA and the overdue invoice. The number of days overdue is not considered.
How does the Percentage (charged once) work?
The entered percentage is charged once based on the COA and the overdue invoice. The number of days overdue is not considered.
How does the Annual Percentage (charged daily) work?
This uses the formula: (Days late ÷ 365) × (Daily percentage + Bank Rate, if applicable) × Amount overdue.
Example: Monthly rent is $2,420. Company rate is 9.5%, optional bank rate is 2%. Tenant is 12 days late: 12 ÷ 365 × 11.5% × $2,420 = $9.15.
How is the Grace Period applied?
The grace period is the number of days tenants have to pay after the invoice due date before late fees are applied. If payment is not made within the grace period, interest is calculated dating back to the original due date.
What date is used to calculate late fees?
Fees are calculated based on the date the money cleared — not the date it was captured or reconciled in Re-Leased.
Are credit notes considered in late fee calculations?
Yes. Credit note allocations are treated like payments, using the allocation date for the calculation.
When can Bank Rates be used?
Bank rates can only be applied to the Annual percentage — charged daily fee type. The Bank Rate field appears automatically when this rule type is selected.
What happens when I change the rule rate or bank rate?
The latest version of the rule is applied to all calculations. Historical changes are not considered. If the bank rate changes, all pending fees will be recalculated using the latest percentage.
Important: Before changing a rule rate or bank rate, generate an interim late fee invoice so that outstanding fees are captured at the previous rate.
To modify a Bank Rate: go to Late Fee Rules > Bank Rates, click the Contextual Menu [...] and choose Edit. Or go to Late Fee Rules, expand Current Rules, find the rule, click Edit, and select the Bank rate field.
How do you identify overdue invoiced amounts?
Chart of Accounts are used to identify overdue invoices by looking at the line items within the overdue invoice.
How are Chart of Accounts (COA) used?
A rule must have at least one income COA for creating late fees. The COA must have a tax type assigned.
A rule must also have a paid-to COA for where late fees are charged.
Rules can be assigned to multiple COAs.
Assigning multiple rules to the same COA will result in multiple fee line items.
Note: When choosing the income COA, be cautious about selecting "all" accounts — this may include the paid-to COA and result in late fees being generated on late fees.
Will fees still be calculated after being waived?
No. Waiving a fee means no further fees will be generated for the applicable COA lines within that specific invoice for that specific rule.
Do late fees have audit logs?
Yes. Audit logging is in place for late fees. Contact Re-Leased support to request audit log information while a UI for this is being developed.
Can I add vacated tenants to Late Fee rules?
Only current tenants can be added to late fee rules. Vacated and future tenants cannot be selected. For vacated tenants, raise a late fee invoice manually or use a repeating income invoice template.
For North American users, "Tenancies" are known as "Leases". For more information on regional terminology, see our Glossary of Regional Terminology.