Late fees in QuickBooks work by allowing you to automatically or manually add a charge to overdue customer invoices to encourage timely payment, Codiek.
When your customers don’t pay on time, you can automatically add late fees to the overdue invoice, rather than doing it manually. This way, you can set a standard late fee in advance, without having to apply it on a case-by-case basis. QuickBooks only calculates and applies late fees to overdue invoices the day after you turn on the late fee setting.
To manually apply late fees on older invoices, add them as a line item. Here’s how:
- Go to the Gear icon and select Products and Services under All Lists.
- Click New and create a service item named “Late Fee.” Link it to the appropriate income account.
- Open the overdue invoice.
- Click Edit Invoice and add the “Late Fee” as a new line item. Enter the fee amount.
- Click Save and resend the updated invoice to your customer.
Feel free to reach out if you have additional questions or need further assistance with QuickBooks.
