Automatically add a fee for a late payment to invoices

Learn how to set up an automatic late fee for invoices that are overdue in QuickBooks Online

You can have invoices automatically calculate a late fee for payments that are overdue. An item gets added to the invoice and you don't need to add a fee every time you are dealing with an overdue payment.

Calculating late fees

1. Go to the ⚙ icon and then Accounts and settings.
2. Go to Sales.
3. Select the pencil icon in the Late fees section.
4. Turn on Default charge applied to overdue invoices.
5. Select either a flat fee or to have a percentage of the remaining balance.
6. Enter your amount and frequency of your late fee.
7. You can optionally set up a grace period in the Grace period dropdown.
8. Select Save.

Invoices that are past due will show a late-fee line item under Product or service on the invoice.