Add Late Fee to an Invoice

Add Late Fee to an Invoice

Purpose Statement

The purpose of this feature is to allow administrators and billing personnel to add late fees to overdue invoices, helping agencies maintain cash flow and encourage timely payments from customers. This functionality supports both flat fee and percentage-based late fee structures to accommodate different agency billing policies.

Background Information

Late fees are essential for Fire/EMS agencies that provide billable services such as ambulance transport, fire suppression, or special event coverage. Adding late fees to overdue invoices helps recover additional costs associated with delayed payments and encourages customers to pay invoices promptly. The system supports both flat fee amounts and percentage-based calculations to provide flexibility in how agencies structure their late fee policies.

Common use cases include adding late fees to ambulance billing, fire suppression invoices, and special service charges that have exceeded their payment terms.

Required Permissions

Users must have the following permissions to add late fees to invoices:

  • Invoicing Module Access: View and access the invoicing section
  • Edit Invoice Permission: Ability to modify existing invoices
  • Fee Management Permission: Authority to add fees and charges to invoices

Video


Step-by-Step Guide

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1. Click on Invoicing.


Click on Invoicing.



2. Click on Invoice List.


Click on Invoice List.



3. Click on Expand Advanced Search.


Click on Expand Advanced Search.



4. Select Overdue.


Select Overdue.



5. Click on Apply.


Click on Apply.



6. Click on Edit for the Invoice to add a late fee to.


Click on Edit for the Invoice to add a late fee to.



7. Click on Add Fee.


Click on Add Fee.



8. Click on "Late Fee" to add the Late Fee.






9. Option #1: Select "Flat Fee" to add a Late Fee using a Flat Fee. Enter the fee amount and any notes needed.






10. Click on Save.


Click on Save.



11. Example of the Flat Fee late fee added to an Invoice.


Example of the Flat Fee late fee added to an Invoice.



12. Option #2: Select "Percentage" to add a Late Fee using a Percentage. Enter the percentage and any notes needed. The late fee for this example is added to the total Invoice.






13. Click on Save.


Click on Save



14. Example of the Percentage (15%) late fee added to an Invoice.






15. Handle the updated Invoice as appropriately per agency requirements.

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Handle the updated Invoice as appropriately per agency requirements.



Best Practices

  • Establish clear late fee policies before implementing fees
  • Document the reason for late fees in the notes section for audit trails
  • Verify agency policy allows for the fee structure being applied (flat vs. percentage)
  • Review overdue invoices regularly to apply late fees consistently
  • Communicate late fee policies clearly to customers in initial invoicing
  • Consider graduated late fee structures for extended overdue periods
  • Maintain records of all late fees applied for compliance reporting

Troubleshooting & FAQs

Q: Why can't I see the Add Fee button? A: Verify you have proper permissions for fee management and invoice editing.

Q: Can I add multiple late fees to the same invoice? A: Yes, you can add additional fees if your agency policy supports compound late fees.

Q: How is the percentage calculated? A: Percentage-based late fees are calculated against the total invoice amount before any previous late fees.

Q: Can I remove a late fee once it's been added? A: Late fees can typically be removed through the edit invoice function, but check your agency's policy on fee reversals.

Q: What's the difference between flat fee and percentage late fees? A: Flat fees are fixed amounts regardless of invoice total, while percentage fees scale with the invoice amount.

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