Late Fees

I guess maybe I worded my question wrong.  It is when I go to print a statement, I can add a finance charge.  Currently QB's adds the finance charge based on the number of days late the invoice is.  When I go to make sure the finance charge is being added correctly, under the steps I listed above, it shows 18% as the yearly rate.  

I appreciate your prompt response, missmissySEI.

Thank you for clarifying your concern. I see that you wanted to charge 1.5% monthly interest on past-due invoices and are seeking guidance on how to do that in QuickBooks Desktop (QBDT). 

However, know that QuickBooks calculates the finance charges annually. 

You can check if you calculate your finance charges correctly by using this formula provided by QuickBooks: 

Finance Charges = No. of days past due x Balance due x Rate / 365

After managing your invoices, you may want to take and process payments in QuickBooks Desktop.

You're free to reply to my post whenever you want to ask some questions or want to share your insights regarding finance charges or anything that relates to QuickBooks Desktop. I'm always here and ready to assist.

Hello, I am trying to figure out how to add the late fee to the original invoice on QB desktop. When I click on "assess charge" it creates a new invoice for this fee, separate from the original invoice. How do I get the late fees to appear on the customer's original invoice?

Thank you

I can assist you with your concern about late fees, jawd.

 In QuickBooks Desktop, there is a feature called "Assess Finance Charges" that you can use to calculate late fees for unpaid invoices that have gone beyond the grace period. This feature is not automated like in the online version, but it only takes a few clicks to assess late fees. I can guide you through the process.

To enable finance charges, here's what you'll need to do:

1. Go to the Edit menu at the top.
2. Select Preferences.
3. Click on Finance Charge.
4. Choose the Company Preferences tab.
5. Enter the details of your finance charge and click OK.

To assess late fees, you can go to the CUSTOMER workflow section of the Home Page and click on the Finance Charge icon. Then, select the customer and click on Assess Charges. Alternatively, you can right-click on the customer's name and select Assess Finance Charges. An invoice for the Finance Charge will appear on your customer's transaction list. 

However, if you want to add the late fee to the original invoice, you can consider creating a service or other charge item. Then, manually add them to the original invoice as another line item.

If you want to learn more about this feature, you can check out this article: Assess finance charges.

 If you have any further questions about late fees, feel free to comment below. I'm here to help you out.