Automatic Late Fee's and/or Finance Charges
EVERYONE wants / needs this. Why is this not done yet... Also make it so we don't need to interact with it. Its so much easier just being able to tell a customer "Well, the computer did it." It would also help remove favoritism. I have a tendency to overlook some accounts for the people that I like.
David M Beaty commented
This should be on Qb already. Under the Late Payments of Commercial Debts Act, every company has the legal right to charge it to any outstanding debt.
This is an important feature that would be very helpful. I'm a small landlord with only a few properties so the fee does not get added that often. However, when my previous rent collection service was automatically applying the fee the tenant knew right at the time of payment the fee was now due and I had fewer excuses ... it was late and the fee appeared right on the online invoice. Now that I need to manually add the late fee to the next month's invoice I receive emails offering explanations for why they're late and asking we don't apply the fee on the next month's rent. If the fee is automatically due on the day they're late and it's needed to pay the current rent in full, it's psychologically easier for the tenant to accept. I understand programming is not simple but there are other companies with fewer resources than Intuit already doing it.
Frances Murray commented
Yes - for several of my clients we are having to manually calculate and post. This should be an option.
Is QuickBooks working in adding an option in which we can charge fees to clients for paying using a credit card. My profits are being eaten by intuit fees and would like to pass the charges to the client otherwise I will be obligated to use another service or merchant services that will give me next day deposit and with lower fees.
I would just like to be able to make it a percentage that is automatically added on after 30 days of not being paid, and also to be able to turn it off for certain clients.
Once a month finance charge which is after a 30 day no pay. I still can't believe that this has not happen yet. Please make this a "hot button" to finally get done.
Thank you in advance
Late fee/finance charges would be a very good thing. When there is no penalty for being late people tend to forget or delay paying. I am all for this.
This would be most useful for customers who are chronically late pay
Tim Stewart commented
I do add late fees after the 30 day period is up. However, it is hard for me to remember for all accounts, with so much going on in the shop. It would be very helpful to have some way to add the late fees for whomever/customer, and for any time period. Could you add it to the invoices somehow, so that when the designated time period arrives, such as the overdue invoices, the late fee charge is automatically added.
Thanks for listening,
Is anything in the works to get this added to QBO? Thank you.
Add discounts late fee's
They have been too busy doing high-demand modifications like re-designing the UI, at least, 3 times since 2012.
PLEASE YES NEED this has been requested since 2012?! Where is it?
Ralph Howarth commented
Because it is not a simple thing.
You cannot compare QB Desktop with QBO. QB Desktop does list customization and management where you have to leverage the list management to get more of what you want it to do. QBO starts off with some automation presumptions that forks the list management into separate functions. The functions are: Activity, Charges, Billable Expenses, & Time. These functions determine how an invoice is constructed. So we all want late fees; but just how should they be levied? As Charges? or as Activity? If Activity, then they become their own invoice. Then the customer either has to get the invoice processed separately, or be included in a statement processing run. Either way, it can be more work to give a customer due notice of late fees and charges. If the fees are added as Delayed Charges, then those charges await processing of the next invoice, which depends on whether the user has their invoices setup to automatically include charges or if the company settings have the charge automation turned on. If not, the user has to remember to manually link the charges on an upcoming invoice.
Then there is the late payment policy of your organization. Are multiple late fees assigned for the same charge that misses payments month to month? or is interest charged subsequently thereafter? By law, some industries cannot levy a late fee multiple times on the same charge but can charge interest.
Then what about scheduled electronic payments when customers participate in Bank Authorization Transfers? Are customers going to be immune from late fees when they have scheduled payments and the processing is delayed by no fault of their own? Just applying late fees to all Overdue Invoices is not an adequate solution as the algorithm for administering late fees is elaborate out of necessity.
Then there are "price level" tiers of late fees and interest rates. Sometimes a policy of late fees is a graduated scale where the late fee amount escalates up for multiple occurrences of the same in a given time period. Sometimes interest rates also very depending on the nature of the activity that pertains to different revenue center policies.
Just having a "simple" late fee / finance charge automation can quickly devolve into a blunt, shotgun instrument that demonstrates poor discrimination of just when such fees should apply. Such a tool can quickly exacerbate a host of customer relation problems if not built and wielded properly. Ultimately, whatever QBO gets around to building is going to have a design to it; and if you use it counter to the design, it can render some unintended consequences like any automation can.
No, I do not work for QBO. I am a business technologist, and have been wary of how technology can help and cause trouble in the same sandbox. In order for such a tool to implement well, it would have to have a solid filter trapping method to target the correct invoices for charging late fees and interest. Such filter trapping is synonymous with any kind of bulk data grid editor (think batch transaction editor) that pulls data into a targeted record set. Then and only then can you run a targeted function operation on the data. Without a good filter trap, automation can become an avalanche of a whole bucket of tuwuble (in the tweety bird voice.)
There are way more votes for this than MANY of the other projects QB is currently working on. Why is this taking so long for such a simple thing?
Definitely need this as part of core software, get working QB,
Jake Willer commented
Quickbooks online should have a place on the invoice for late fee charges or interest to be added. It would also be nice if there were some type of overdue invoice letters that say that the interest/late fees will now be applied if not paid in full.
Dirty Nails LLC commented
Stating that it is available in a third party app that has a minimum charge of $19.00 per month is not acceptable. With QBO we already pay a hefty $33.00+ monthly. This is a basic accounting function for business owners and should be available in QBO as it is available in desktop version.
There are a number of third-party QBO applications on the APPS menu (bottom of the left sidebar). The most promising appears, to me, to be "Automatic AR and Recurring Billing Platform" by Armatic, Inc. (https://appcenter.intuit.com/app-b7q6mivc53)
It seems like there is an application that solves this exact problem!