Late fees

Good morning, @Charlie11.

How are you doing today? I hope all is well. 

There are several reasons why you may not see a late fee applied to an invoice automatically such as:

• The invoice was already overdue before turning on the default late fee settings.
• QuickBooks Online only applies late fees to invoices up to six months overdue.
• Your Invoice is still unpaid but in a closed period.

When you apply a late fee to an invoice, it will show up as a line item. Like other products, you can change the name of the late fee if you want. Here's how:

1. Go to Gear Icon, then select Products and Services.
2. Find the late fee you wish to edit, then click on Edit.
3. Enter the name you want to use in the Name field.
4. Hit Save and close.

If you'd rather enter the late fees manually, you certainly can. All you'll need to do is create a service item and apply it to the invoices manually. You can name the service item "Late fee" if you wish. For more information about this process, check out Add product and service items in QuickBooks Online. 

That should do the trick. You can learn more about late fees in Apply late fees to overdue invoices in QuickBooks Online. 

Please don't hesitate to let me know if you have any other questions or concerns. Have a good one! 

Thank you Tori. I get everything you said. I went to the late fee item and it shows me a rate. I want the finance charge to be 1.5% of all past due amounts on the current statement. I have many repeat customers so there will be open invoices not subject to a finance charge on recent invoices and finance charges on older open invoices. 

All of my invoices go out as "due on receipt" but I will apply finance charges or "late fees" on amounts over the 30 day threshold.

It does not look like I can add a % to open and late invoices in the late fee item under products and services.

I have attached the item I used to use on Desktop version that did it automatically when I ran my monthly statements and it allowed me to pick the clients I wanted to add the finance to. 

Let's set up late fees together so you can charge your customers accordingly, Charlie.

When applying late fees in QuickBooks Online (QBO), the system will only calculate and apply to your invoices the day after you turn on the late fee setting. Since you want to add it to your old invoices, I'd suggest adding it manually by following the steps above.

The option to add a percentage to products and services is unavailable. As a workaround, you can add a flat rate for that amount and calculate the equivalent amount of the 1.5% late fee you want.

Furthermore, refer to this article for a step-by-step guide on manually adding late fees to your old invoices: Apply late fees to overdue invoices automatically in QBO.

Additionally, you can streamline your invoicing process by enabling automatic reminders for unpaid invoices, ensuring timely payments and improved cash flow for your business.

Feel free to comment if you still have concerns about late payments on your invoices. I'm here to help you.