assessing late fees on invoices

Hello there, @kross1. I'm here to help you create an invoice for the late fees in QuickBooks Online (QBO).

To send a separate invoice for the late fees, you can manually create an item for this and add it to the transaction. Here's how:

1. Navigate to the Settings menu and select Products and services.
2. Click New and select Service.
3. From the Name field, enter a name for the late fee.
4. Next, from the Category dropdown, select the category that best describes the fee. Find out more about item categories (Optional).
5. If needed, fill out the rest of the fields.
6. Click Save and close.

Once done, you can now create a new invoice with a new number and select the late fee. For reference, check out this article: Manually add service fees to invoices in QuickBooks Online. 

I'll include this helpful article that you can use as a guide in recording your customer payments: Record invoice payments in QuickBooks Online.

I'm always here ready to lend a hand if you have any other concerns about managing customer late fees in QuickBooks. Have a good one and stay safe. 

This solution leaves me with too many questions to even try it out.

1. This new invoice#, does it copy the original invoice, I add the late fee, then it's all on one invoice again? or is this new invoice just for the late fee?

2. what happens to the original invoice#? Am I collecting on that plus the new invoice# now?

3. Is the original invoice voided ?

thanks, Karen R

Hello there, Karen R.

Allow me to chime in and provide additional information on your follow-up questions about creating an invoice for late fees.

For your first question, the invoice won't copy the original one since you're creating a new invoice. And it's for the late fee only.

Second, you can collect payments to the original invoice. Lastly, the original invoice will still be open until your customer paid it. Thus, it doesn't void.

Just in case you want to learn more about applying late free to overdue invoices automatically, you can check out this article for more guidance: Apply late fees to overdue invoices automatically in QuickBooks Online.

Don't hesitate to leave a comment below if you have other concerns or follow-up questions about managing late fees for invoices. I want to make sure you're taken care of.

I don't seem to find this option in my QuickBooks online

I understand your sentiments, @Xtreme. Let's figure out the reasons why the option isn't showing on your end.

If you're referring to applying late fees on invoices, this option is available in the US region only. Nonetheless, if you are using a different region, may I know what region you're using? This way, I can provide accurate information specific to your country.

Furthermore, if you are using the US region, then, let's perform the basic troubleshooting steps to isolate the issue.

We can use an incognito window and sign in to your account there. If this option works, we can clear the cache from your regular browser.

Here are the shortcuts to incognito browsers:

• Google Chrome: press Ctrl + Shift + N
• Microsoft Edge: press Ctrl + Shift + N
• Firefox: press: Shift + CTRL + P

Furthermore, the cache can hamper and affect the functionality of QuickBooks and result in missing tabs and features, thus, clearing the cache to reduce issues that occur when using QuickBooks.

I'm here to help with any further questions you may have about QuickBooks or any other topic. Feel free to reach out whenever you need assistance. Take care!

Mark

I have a similar question.  We would like to establish a standard automatic late fee to be generated by QBO and sent to our past due customers.  I have read and understand the article on setting up automatic late fees but was not clear on if this will be a separate invoice or added to the existing invoice.  We would like it as a separate invoice to not impact transactions after we reconcile each month.  

Let me guide you on how you can establish a standard automatic late fees due to customers, Daker.

QuickBooks Online (QBO) only calculates and applies late fees to overdue invoices the day after you turn on the late fee setting. You can manually create an invoice and enter the late fee as a line item. To do so, follow the steps provided below:

1. Go to the Sales tab, then select Products & services (Take me there).
2. Select New.
3. Select Service.
4. Enter a Name for the service example: late fee
5. From the Category ▼ dropdown, select the category that best describes your product or service. Learn more about item categories.
6. In the Description on sales forms field, enter a description. This is what your customers will see on their sales form.
7. Enter an amount in the Sales price/rate field. Note: If you charge a variable rate for services, you can leave the Sales price/rate field blank. Then add the price when you fill out the invoice or sales receipt.
8. Select the account you want to use to track the sale from the Income account ▼ dropdown. Tip: You can use an income account QuickBooks has already set up for you, or select + Add new to create a new income account. Learn more about adding accounts to your chart of accounts.
9. In the Sales tax section, sales tax is applied by default based on location. For more specific options, or to make the product or service nontaxable, select Edit sales tax. Then do one of the following, depending on the product or service:
   1. If the product or service is tax-exempt, select Nontaxable. Then select Done.
   2. If the item has a special tax rate, use the Search field or Browse all to find and select a more specific product or service type. Then select Done.
10. When you're done, select Save and Close.

Once done, you can add the service to your invoices, sales receipts, expenses, and other sales forms.

You'll also want to track how much you spend on the product and service and track and manage the product and service items you sell, read this article for more information: Add Product And Service Items To QuickBooks Online.

Additionally, QuickBooks Payments allows you to add links to invoices so customers can pay online. Take time to read this article for more details: Take And Process Payments In QuickBooks Online With QuickBooks Payments.

Let me know if you have any questions about automatic late fees. I'll be one post away if you need further assistance.