Late Fees Setup provides access to Late Fees configuration. Apply Late Fees must be checked to activate late fee functions. “Late” is determined to be 30 days past the posting date of any outstanding invoice(s). You must set the parameters below for fees to be properly assessed to any customer accounts that are now considered overdue. Account is defaulted to record the Late Fees revenue as collected in a separate GL Code for reporting purposes.
Fee Reminder Day - Choose between the 1st and the 15th of the month for the day in which the fee reminder message will appear or no reminder when the program is opened. If you don’t want to assess fees below a certain dollar threshold, enter that figure in Ignore Cumulative Overdue Balances below this Amount.
The Late Fee function is based on invoices that are 30 days or greater past due on the selected day of the month. If the customer has a $500, but only $100 of that is past due on the trigger date, the late fees will only be assessed on that portion of the balance.
Fee Assessment Options – If you choose the Flat Fee method, enter a price to apply a flat dollar amount to all late accounts. Choose Percentage of Balance to apply a calculated amount to the overdue account. If you’re looking for 1-1/2% per month, enter ’18’ in the Percent box. You may also "cap" the fee by specifying a Max. Fee $ and specify a minimum late charge by specifying a Min. Fee $.
Choose minimum and maximum dollar controls for the fees calculated, making sure to enter a number greater than zero in Maximum Fee so that Late Fees works as expected. Click on Done and it’s ready to begin using. Fee Assessment can be run automatically as part of the during the End-of-Day function or by selecting the Utilities menu, then Late Fee Assessment at any time. Individual fees may also be edited or removed during this fee assessment process.
When the Late Fees Assessment is run, all of the information pertaining to customers, and their overdue balances is displayed. The entries listed in black fit within the 30-90 day window for assessing fees. Any names shown in red are now beyond 90 days and the software has stopped automatically including these in the fee assessment process. There is the option of clicking the Apply Fee box if you want to assess this party with a further late fee. It is also possible to edit any individual fee listed. Once you’re satisfied with all of the values, click on Assess fees to run the process. This will conclude with the option to print a Late Fee Assessment report at this time.
When any of these customers’ balance is looked up with F5 Batch Payment window, the fees will appear as separate items included in their balance. At your discretion, the Delete Fee button will remove it from their account balance. On the other end of the spectrum, there may be some accounts such as family or employees that should never be assessed late fees. When Late Fees are enabled, all customers are defaulted to be assessed in the monthly process. It is possible to exclude certain customers by going to Utilities, Customer Screen and selecting the customer by name. Then click on Update Customer; put a check in the Exempt from Late Fees box and click OK. This customer will now be excluded any potential Late Fee assessments.
Recommendation: Update your disclaimers to warn your customers of the possibility of late fees, should they owe a balance 30 days past the invoice post-date.
Important: It is Essential for you to consult your local and state laws as they may regulate late fees practices. Please be advised that Snap-On is not responsible for ensuring your compliance with state and/or other law regarding the assessment of late fees or other interest charges on outstanding invoice amounts.
Late Fees Setup