Late Fees

Welcome to the Community, @jrlapides2. Glad to know that you're able to turn on the Late Fees feature in QuickBooks Online. 

Just a few insights though, QuickBooks does not apply late fees to invoice that overdue prior to turning on the late fees setting. This is why it's not showing up on your dummy invoice. 

For more information, you check out this article: Set up and apply automatic late fees to invoices. It includes answers to most of your questions about using the Late Fees feature in QuickBooks Online. 

For future reference, you can also create a service fee item manually to an invoice. Read through this help article for more information: Add service fees manually to invoices. 

Visit again if you have additional questions or concerns. I'll be right here to help. Stay safe. 

Hi Katherine:

Thanks for your response. I applied the late fees option PRIOR to sending out the invoice, not afterwards so this does not seem to explain the problem. 

Also, I did read the article you suggested prior to posting.

Jeff

Hello there, @jrlapides2.

I appreciate you reading the article suggested by my colleague. Let me add some information about late fees. QuickBooks Online will automatically calculate late fees as to when we apply it in the invoice.

For supplementary information, you can check this article that can guide you on how to set up and apply automatic late fees to invoices. 

For further reference, you can refer to this article on how to automatically do the sales tax calculations for your invoices and receipts: Set up and use automated sales tax in QuickBooks Online.

If you have further concerns, just click the Reply button. I'll get back to you as soon as I can. Have a great day.

So let me try to understand how it is supposed work as I have a test invoice sitting in my inbox.

Will the late fee show up when I click to pay the invoice IF the invoice is late?

Jeff

Thanks for coming back, jrlapides2.

Yes, the late fee will show up when clicking the invoice Pay button as long as you turn on the Late fees feature.

Here's how to turn on the automatic late fees in QuickBooks Online (QBO): 

1. Click the Gear icon on the top menu.
2. Select Account and Settings.
3. Tick the Sales section. 
4. Tap the Pencil icon in the Late fees section.
5. Check the box for the Default charge applied to overdue invoices.
6. Hit Save.
7. Press Done. 

Then, you can specify the fee type, amount, grace period, and how it will show up on the invoice. For more details about this one, check out this article: Set up and apply automatic late fees to invoices. 

To learn more about managing your invoices, refer to this link: Add, manage, and send invoices. 

I've got a link here where you can find articles about sales and customer transactions: https://quickbooks.intuit.com/learn-support/en-us/sales-and-customers/07?product=QuickBooks%20Online.

Feel free to go back to this post if you need a hand with creating recurring transactions or any QBO related. I'll be here to ensure your success. Take care always.