Select from two penalty rules in Late Chaser:
TO START FROM YOUR DASHBOARD GO TO > SETTINGS > SETTINGS
You'll find the two penalty rules (Fixed Price or Percentage) below:
Important note: All changes save automatically as they are made.
How Interest penalties work:
When this option is selected, Late Chaser will take the overdue amount of your invoice, and apply the interest rate that you set, and generate a penalty invoice in Xero for your customer.
Set the status of your penalty invoices
Late Chaser will create penalty invoices for your interest fees, choose the invoice status of how they appear in your Xero account, either as Approved or as a Draft.
Choose the Xero chart of account for your penalty revenue
Select which chart of account you would like to code your interest fee income to go into. Xero will typically have a default option for your pick from (Interest Income) however feel free to set your own, or discuss this with your accounting professional.
Set your grace period / Select how many days after overdue to send the penalty
Late Chaser will let you apply a grace period before sending penalties on overdue invoices.
Example: Select 2 days and Late Chaser will wait 48 hours before sending the penalty invoice.
Note: If you don't want to apply a grace period, set this to 0.
Set your interest rate to charge on your invoices
Set the dollar amount of the penalty that you want charge to your customer for overdue invoices.