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K
kross1
March 7, 2023
Question

assessing late fees on invoices

  • March 7, 2023
  • 1 reply
  • 0 views

We have a customer that has 13 invoices past due. We have been adding late fees every month. Now they are wanting me to send them a separate invoice for the late fees with a new invoice number. That would be a new invoice just for a late fee on a separate invoice. They state their accounting system doesn't allow them to change the amount on an invoice so they need a new invoice number. This seems ridiculous. Has anyone else have this issue?

 

Thanks, K 

1 reply

DivinaMercy_N
DivinaMercy_N
March 7, 2023

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. 

K
kross1Author
March 8, 2023

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

M
Mark_R
March 8, 2023

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.

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