Late fees
In this video, you'll learn:
- How to configure late fees for each site you manage.
- Setting the trigger for late fees based on days past the invoice date.
- Choosing between fixed or percentage-based late fees.
- Setting a threshold to determine which unpaid invoices generate a late fee.
- Assigning an accounting code to apply taxes and manage late fee invoices.
- Understanding how to stack multiple late fees while ensuring they are based on the original unpaid invoice.
By the end of this video, you'll be able to set up and customize late fees in Storeganise, helping you effectively manage overdue accounts.
Next up in this module: Creating custom promotions (promo codes)
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View the transcript
This video will explain how to set up late fees in Storeganise.First, it’s important to note that late fees are site-specific. If you manage multiple sites, you’ll need to configure late fees separately for each one. Additionally, each late fee will be generated as a unique invoice and added to the customer’s unit rental account.
To get started, select the site where you want to add a late fee. Then, click on "Advanced settings" in the left side menu. Scroll down to the "Late fee" section and click on "Add your first late fee."
Begin by entering a description for the late fee. You can use a placeholder to reference the unpaid invoice that the late fee is associated with. For this example, I’ll use a placeholder to create a description that links the late fee to the specific unpaid invoice.
Next, set the number of days from the invoice date that will trigger the late fee. This means if your invoice period starts on the first of the month, the late fee will be generated based on the number of days after that date. If your billing mode is anniversary-based, the late fee will be triggered a certain number of days after the customer’s anniversary date. In this example, we’ll set it to seven days, so the late fee will be generated seven days after the invoice date.
Now, decide if the late fee will be an absolute value or a percentage of the unpaid invoice amount. For instance, you could set the late fee as a fixed amount, like $10, or as a percentage, such as 10% of the unpaid invoice.
Next, set the threshold. The threshold limits which unpaid invoices will generate a late fee. For example, if you set the threshold to 10, any unpaid invoice under $10 won’t generate a late fee, while any invoice over $10 will.
Lastly, you can assign an accounting code, which allows you to add a tax rate and accounting code to the late fee invoice.
To summarize with our two examples: The first example generates a late fee invoice of 10% of the unpaid invoice amount, generated seven days after the invoice date. The second example creates a late fee invoice for $10, generated 14 days after the invoice date.
You can stack multiple late fees if needed. However, keep in mind that the late fee balance doesn’t accrue. If you’re using the relative percentage option, it will always be based on the original unpaid invoice, not on any subsequent late fees.