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February 10, 2023
Question

Late Fees

  • February 10, 2023
  • 1 reply
  • 0 views

Hello!

 

I have a client that is looking into charging late fees for open invoices.  Can i please get some help with this?

 

Thanks!

David

1 reply

February 10, 2023

Hi there, @schmidtfs. I'm here to help you in adding late fee charges on open invoices in QuickBooks Online.

 

Based on your scenario, I take it that you want to charge late fees for overdue invoices. If that's the case, you can simply enable the Default charge applied to overdue invoices feature from the Accounts and settings page. I'll show you how:

 

  1. Open the Settings menu. 
  2. Go to Account and settings.
  3. Turn on the Default charge applied to overdue invoices option.
  4. Choose a type of fee you want to add.
  5. Fill out the Amount or Percent and Frequency information.
  6. Fill out other necessary information.
  7. Toggle the Apply Sales Tax section depending on your preference.
  8. Once done, click on Save.

 

Here's a screenshot for reference:

 

 

That's it! Late fees will now be automatically charged to overdue invoices in QBO moving forward. For more details about the process, see this module: Apply late fees to overdue invoices automatically in QuickBooks Online. Please note: QuickBooks only computes and adds late fees to overdue invoices the day after you turn on the late fee feature.

 

If you'd also want to charge fees on previous overdue invoices, check out this guide to do it by yourself: Manually add service fees to invoices in QuickBooks Online.

 

You can always get back to us about how to manage invoices, fees, or QuickBooks. Just leave a reply below so we can help you as soon as we can. Take the best care!