Do you have unpaid bills? Are your customers paying late? Do you want to charge them the corresponding penalties?
With the "Automatic calculation of late payment penalties" app, get the amount of penalties to charge your customers for late payment!
Based on the penalty rate applied, the application automatically calculates the amount to be invoiced to the customer, according to the number of days overdue.
Installing the app adds a new link to each invoice: "Automatic calculation of penalties" in the "Late payment penalties" section.
Clicking on this link opens a new page with a table containing :
- List of invoice due dates, with overdue information
- Daily penalty amount
- Number of days overdue
- Total penalty amount
The penalty is calculated according to the following standard formula: [(amount incl. VAT x penalty rate)/365 ] x number of days late
Late penalties are not calculated in the following cases:
- On credit notes, on invoices to be issued: as long as the status is draft, the application does not display calculations
- On invoices with a payment due date that is NOT late. In order to calculate the amount of penalties, late payment must be proven.
Note that :
- Penalties for late payment are automatically due on the day following the payment date indicated on the invoice.
- Invoices and/or T&Cs must specify the conditions of application and the interest rate of penalties due in the event of late payment. In incwo certified NF, the late payment penalties module is automatically integrated into the invoicing function. Be sure to check your rate setting to obtain a calculation.
