Late fees on overdue invoices

TallyPip can add a late fee to an invoice that's still unpaid some days after its due date. It's added once per invoice, as a Late fee line in the invoice's totals, and goes into your books as Late fee income.

Turn late fees on

1. 1Go to Settings › Sales (owners and admins) and find Late fees.
2. 2Tick Charge a late fee on overdue invoices.
3. 3Choose the Fee: a Percentage of the unpaid balance (for example 1.5) or a Flat amount (for example 25.00).
4. 4Enter the Days after the due date to wait (for example 15). With 0, the fee is added the day after the due date.
5. 5Check Your invoices will say and press Save.

Only invoices you send after turning late fees on can get one, so nobody is charged a fee they weren't told about. Check what's allowed where you and your customers are.

What your customer sees

• Before: the invoice (on screen, online and in its PDF) says, under the totals, for example "A late fee of 1.5% of the unpaid balance is added if it isn't paid within 15 days of the due date."
• After: the invoice shows a Late fee line above the Total, and the amount due goes up by it. The online invoice, its PDF, reminders and Pay all use the new amount.
• Their statement shows the fee as its own line, on the day it was added.

When the fee is added

Each morning TallyPip checks your sent invoices. An invoice that's still unpaid when its days after the due date have passed gets the fee: a percentage is of what's still owed that day. It's added once, never twice, and not to drafts, paid or voided invoices, or invoices brought over from another app. The invoice page then says Late fee of … added with the date.

Waive a late fee

1. 1Open the invoice. Next to Late fee of … added, press Waive it and confirm.
2. 2The fee comes off the invoice and out of your books, and it won't be added again.

Don't want a fee on one invoice at all? Before it's added, press No late fee on this one at the top of that invoice.

In your books and reports

• The fee is its own entry, dated the day it was added: Accounts Receivable up, Late fee income (an income account TallyPip adds in the 4900s) up. Reports for earlier days don't include it.
• On the cash basis it counts when it's paid; a payment covers the invoice first, then the fee.
• Voiding the invoice takes the fee out too. If your books are closed on the day it would be added, it's dated the first open day.
• To stop adding fees, untick Charge a late fee on overdue invoices. Fees already added stay unless you waive them.