Question about Late Fees

Self-Hosted | v5
1

Version ie <v5.10.30>

5.12.28

Environment <Docker/Shared Hosting/Zip/Other>

self-host vm

Question

so I just have a question about late fees… How is the “Late Fee Percent” calculated? What I’m looking for is it calculated simple interest per day/month/year? compounded interest?

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2

Hi,

It’s just a percent of the total. If multiple late fees are added I believe they will compound.

3

most late fees, at least in the US, are typically governed by the terms and conditions between the two parties and legally upheld after validation against state usury laws (i.e. simple interest charged)… and i’ve never seen one that used a fixed amount or percentage.

in other words… i guess i’ll never use that section.

4

question for the templates & reminders section.

First Reminder is configured like the below:

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Questions:

  1. If I send this reminder multiple times (i.e. every 31 calendar days) does it add an additional 1% as in 1% of the new total with the previous 1% added? Also, does it add 1% to the total or just the items (i.e if I have shipping, taxes, or other fees).
  2. Will it update the invoice that’s now locked to show the new invoice total with the late fees identified?
  3. If I configure a schedule does it only do it once or does it update the due date on the invoice? Basically does it automatically send every 31 days while or just the once?
5
  1. I believe it will add 1% to the total each day
  2. I’m not sure, you’d need to test
  3. A scheduled send would only send once
6

It’s not adding the 1% anywhere.

7

Sorry, I misread. The fee is added when the system sends the reminder, not if you send it manually.

8

so you have to have it configured to automatically send it to add the late fee? that’s probably not a good idea… I know I’d rather decide when to attach the late fee myself.