I have a situation where someone did look at their invoice and paid late but did not pay the late fee. I have it setup so the late fee is a percentage. The system applied the first late fee as a percentage of the total invoice, a partial payment was applied leaving a few dollars unpaid (the late fee amount). Two additional late fees have now applied but the amount has been a percentage of the remaining unpaid balance, not the whole original invoice amount and it is not compounding. So these second and third late fees have both been based on the unpaid amount, and both additional fees where for the same amount.
I guess what I was expecting was at a minimum. The percentage would apply to the total each time it was applied. Or at the very least the percentage would be calculated against the remaining amount each time it was applied. Instead I have two late fees both based on percentages but both for the same exact amount which ends up being a few cents and kind of makes our late fee system a joke.
Is this by design? I am wondering if there is a bug and percentage-based late fees being applied to partially paid invoices are not compounding?
It would almost be nice to have the option to have late fees apply to either the total invoice amount or the remaining amount.