Late fees let you automatically add a charge to invoices that are not paid on time. They are configured in Invoices → Configure → Fees, on the Late Fees tab.
Turn on the Late Fees toggle, then set:
- Fee Name — how the fee appears on the invoice (default Late Fee).
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Type:
- Flat fee — a fixed dollar amount (up to $5,000).
- Percentage of remaining balance — a percentage of whatever is still owed.
- Amount — the dollar amount (flat) or percentage (percentage type).
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Frequency:
- One-time — the fee is applied once, the first time the invoice becomes eligible.
- Per day — the fee is applied once per day for as long as the invoice remains overdue.
- Grace Period — a buffer of None, 1 day, 5 days, 7 days, 14 days, or 30 days after the due date during which no late fee is charged. As the panel says, the grace period begins the day after the due date.
- Catalog Item (Required) — the catalog item the fee is recorded against.
Click Save.
How a late fee is applied. Once a day, PSS checks your open invoices. An invoice gets a late fee when all of these are true: late fees are enabled, the invoice is Late, it still has a balance owing, and the grace period has passed. PSS then adds the fee as a line item on the invoice and recalculates the total. With One-time frequency it is added only once; with Per day it is added once per day until the invoice is paid. The same eligible fee is also offered as an Add Late Fee checkbox when you record a payment on that invoice (see 6.7).
Example. With a flat late fee of $25.00 and a 5-day grace period, an invoice due on the 1st that is still unpaid on the 7th has $25.00 added to it. With a percentage fee of 1.5% on a $200 balance, the fee would be $3.00.
Note: Late fees are added as a separate, tax-exempt line item, so they do not have tax applied on top of them.