Creating Late Fee Rules

  • Updated

Welcome to our guide on creating and managing Late Fee Rules. In this article, we will provide step-by-step instructions on accessing the Late Fee settings, defining fee details, and viewing all the rules you have set up. After activating these rules, you'll be able to track any calculated Late Fees through the Late Fees hub on your Dashboard.

Accessing Late Fee Settings

  1. Go to the Settings tab and locate the Late Fees option under the Accounting section.
  2. Alternatively, access the Late Fees Hub directly from the Dashboard. 

Optional Step: To incorporate bank-specific interest rates into your fee calculations, be sure to create a Bank Rate. Refer to our "Late Fees FAQs" for additional help on this aspect.

Adding a New Fee Rule

  1. Add fee rule name and an optional description.
  2. Choose one of the 3 fee types:
    • Flat fee - Charged once regardless of the number of days overdue.
    • Percentage - Charged once applying the percentage to the overdue amount.
    • Annual percentage - Calculated daily based on the formula: (Days late / 365) * (Daily percentage + Bank Rate, if any) * Amount overdue.
  3. If applicable, provide a Grace Period, which is the number of additional days given to leases/tenants to make payment before late fees are applied.

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Selecting Income Chart of Accounts

Choose how to apply late fees to your income accounts:

  • All accounts including future accounts, with a consideration to exclude generating late fees on late fees.
  • Select specific income accounts from a list.

Configuring Invoice Settings for Late Fees

  1. Choose an invoice template for the Late Fees invoice.
  2. Set the due date for the late fee invoice by specifying the number of days after the invoice issuance.
  3. Select the Late fee paid to account, ensuring that a proper chart of accounts is used for the fees' income.

Add Leases/Tenants to the Rule

  • Select the tenants who will be subject to the late fee rule. Please note that only current tenants can be added.
  • Activate your rule to start applying late fees based on your defined settings.
  • After creation, you can always revise your late fee rules to reflect any changes in policies or rates.
  • To view and manage all active late fees, navigate to the Late Fees hub from your Dashboard.

Remember, before making any changes to active rules, consider generating interim invoices to reflect the previous rates.


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