Finance Charge and Late Fee Setup

Pathway: Setup > Account > Account Class > Finance Charges / Late Fees


This article explains how to configure finance charges and late fees, which can be applied to an account's invoice during billing. To allow flexibility across account classes, three charge options are available: One-Time Fee Per Invoice, Manual Flat Fee, and During Billing.


Permissions

The following permissions are required to set up Finance Charges and Late Fees:

Charge Code Setup

To apply a finance charge or late fee, you must first create a charge code for billing. This code is used in billing and appears on invoices alongside the charge amount. Once created, the charge code can be applied in the Finance Charge and Late Fee setup within the Account Class. Depending on your policy, the same charge code may be used for all late fee setup options.


For information about creating a charge code, review the Charge Code Setup article.

Finance Charge / Late Fee Types and Setup

During Billing

With this option, when running a scheduled billing batch, the finance charge or late fee will be calculated during the billing process and included on the invoice.  

Manual Flat Fee

With this option, a manual flat fee is applied before billing. This finance charge/late fee option requires manual processing before billing in Accounting > Calculate Manual Finance Charges and Late Fees, and is further detailed in the 'Manual Flat Fee Process' section below. 

One Time Fee Per Invoice

With this option, a finance charge or late fee will be applied one time per invoice and is only calculated for scheduled batches.