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Version: 8.2

Invoicing late payments

Product and threshold configuration​

Access : Application config → Apps management → Accounting, configure → ‘Late payment interest’ section

Once the feature is active, in the ‘Late payment interest’ section, it becomes possible to configure two products used in the generated invoice: ‘Late payment product’ and ‘Flat fee product’. These products carry the accounting configurations used to ventilate (break down) the invoice.

  1. Enable late payment interest: click on this option to activate late payment interest.

  2. Flat fee product: select a product with a flat fee.

  3. Late payment product: if required, select the product eligible for a late payment.

  4. Threshold amount: amount below which the invoice is not generated. This prevents you from invoicing amounts that are too low.

  5. Late payment interest flat fee: flat fee amount that will be applied.

caution

If you do not activate the ‘Enable late payment interest’ option, the ‘Interest rate history’ tab will not appear in the payment method file.

Configuring interest rates​

Access : Accounting → Configuration → Payment → Payment modes

From the ‘Payment mode’ menu, you can configure or modify a payment mode.

  1. Label: enter a label. For example, ‘Credit card collection’.

  2. Code: enter a code. For example, ‘ENC.CB’.

  3. Type: select a type (other / direct debit etc).

  4. Interest rate(%): interest rate to date.

  5. Interest rate history lines: in this table, you will find the interest rate history with the current periods that have been saved. Several rates can be used if the period to be invoiced concerns several rates. Click + to add a new line.

  6. Save and historize the new interest rate: click on this button to save and archive the interest rate.

Invoices​

Access: Invoicing → Customer invoice

It is possible to calculate late payment interest and generate the associated invoice from the payment tab of an overdue invoice. The invoice is only generated if it shows late payment and the amount calculated exceeds the configured threshold.

Late Payment Interest Invoice: an invoice with late payment interest will have a tag indicating that it is a ‘Late Payment Interest Invoice’.

Content tab: on an invoice, in the Content tab, you will find products and flat fees that were configured in the accounting application.

Generate late payment interest invoice: on the Payment tab, you will find the ‘Generate late payment interest invoice’ button. This button allows you to generate the invoice.

tip

The next formula is applied: Amount payable x Rate x No. of days late / 365.