Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
How to add a penalty item that is compounding for each outstanding invoices? We bill our tenants monthly for association dues.
I add this on the current invoices to show how much penalty the tenants have compounded over their outstanding invoices.
Good day, @Arzini.
You can create a penalty item to charge the customers for outstanding invoices. Here’s how:
Once done, create an invoice for the item. You may have to manually calculate the penalty amount depending on the guidelines provided for charging late payment fees. Follow these steps:
Check out these article for the details:
Leave a comment if you need anything else. I’m more than happy to help. Have a fantastic day!
Yes, I already know these steps. These are the steps in creating a new item particularly to creating a penalty item. But what I meant is creating a compounding penalty. For example, one tenant has one outstanding invoice. On the current invoice, I added a 3% penalty due to the outstanding invoice. But on the situation when a tenant has two or more outstanding invoices, we use penalty compounding monthly (interest). Meaning, it's more than 3% (or 3% per outstanding invoice).
We are condominium association billing our tenants monthly for association dues. If unpaid more than two months, they get penalty compounding monthly.
I'm using the desktop product. I have activated the Finance Charges but it doesn't accumulate or compound the interest/penalty for each outstanding invoices.
Hello Arzini
To look at this further for you could you provide a screenshot of the edit>preferences>finance charge page and alos the customer information page showing the invoices in your example
Thank you
Emma
Compounding penalty is, for example, when Invoice A remains outstanding with an amount of $100, we will show the penalty of 3% on the current invoice B which is $3. If on the next Invoice which is Invoice C (now the current invoice), Invoice A & B is still unpaid, Invoice A has now a compounded penalty of $6 and Invoice B has the penalty of $3 both shown on the current Invoice C. Remember that these are Invoices billed on a monthly basis for each tenant.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.