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.
Would be WONDERFUL to be able to add Automatic Late Fees that you can adjust the template for all late invoices. Automatically add whatever percentage you choose to invoices that are all over X number of days past due.
Ryan Malek commented
I would ABSOLUTELY love it if due date reminders could be sent and late fees could be calculated, applied, and sent automatically. Its extremely tiresome to have to manually perform this task at least weekly when its something that should be EASILY automated.
Here's how to do it:
1. Have a default finance charge rate which is applied to all new customers, and a default account to which finance charges are credited.
2. Allow the rate to be changed for each customer, or to turn off finance charges for the customer.
3. When sending statements, have a last-minute override to not charge finance charges, in case there is some unusual circumstance.
4. Compute the finance charge and add it to the statement, but do not make an entry for it in QBO. (It really should NOT be part of the invoice - that makes the invoice inaccurate).
5. When applying payments to invoices, have a Finance Charge field on the data entry screen. If the customer paid a finance charge, the amount goes in that field and is credited to the account defined in step #1. If the customer doesn't pay the finance charge, you just let it go. You're glad to get the payment and you might make a note to require prepayment from the customer in the future.
This is a very simple and elegant way to handle finance charges.
It is not accurate to add the finance charge to the invoice. It doesn't belong there - it is the result of the customer not paying the invoice on time, not something that was originally charged to them.
QBO should have had this feature right from the beginning! It is a normal, fundamental part of an accounting system, and one that is VERY easy to implement when done as outlined above.
I copied and pasted this from a previous post dated 11/10/17. Since I am experiencing the same issue. I will not recommend QBO to any of my future clients due to the limitation of the program and the slownest of the response to issues that affect many users.. QB Desktop is so much better..
Cynde Main commented
AS it seems, QB need to add this feature sooner rather than later. Please advise as to when this is going to be done?
This is something that should be a high priority! If you have a very big customer base it is very labor intensive to figure and add charges manually. Why was this feature dropped? Please address this issue.
Kristen Presley commented
It would be every helpful for QB to have a feature that would all accuring interest to be add to a specific client base on term in set up rather than having to calculate and do it manually.
When will you be adding the "Assess Finance Charges" feature that is missing and included in the stand alone local version of QB... It's been several years... Why???
Firstly I need to commend you guys on a really amazing product. I migrated from SAGE online accounting to QB and never looked or going to look back!!
There is one feature request I would like to add, and it is the functionality/ability to setup a late finance fee - perhaps as a global % under the account settings OR per customer. This would then add the applicable interest to overdue invoices/statements.
Ramesh Raman commented
Has anyone tried this - https://www.latefeemanager.com/ ? This is from QBO apps, and will work from within QBO
I need a finance charge line item. If QBO can't figure out a way to make assessing finance charges automatic, this would at least make it easier to do it myself.
Trevor McGee commented
Has to happen, or i'll go to xero
WOW again.... looked through comments and this was first mentioned 2012..... And QB hasn't stepped up. This is such a standard feature and QB is supposed to be the Gold Standard.
WOW. New to this and can't believe that a billing system doesn't charge late fees automatically. REALLY????
A. R. commented
It is crazy that this is still absent. Does QB even read their suggestion box? I suggest you read your suggestions QB!
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