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Add late fees to overdue invoices

Set the rules for late fees, preview what a run would add, and let Pop Dispatch add each fee as a line on the overdue invoice.

For
OwnerAdministrator
Hosting
Any hosting
Devices
Web browser
Business
All businesses

Checked against Pop Dispatch 0.1.0

Late fees add a line to an invoice that stays unpaid past its due date. You choose the rules once. Pop Dispatch then adds the fees for you, and you can preview a run before it changes anything.

Before you start #

  • Only the owner changes the rules. Managers can read them, preview and run.
  • Invoices have due dates. See "Receivables and aging".
  • Late fees stay off until a fee above zero is set.

Steps #

  1. Open Settings and choose "Late fees". The form is titled "Late fee rules".
  2. Tick "Add late fees to overdue invoices".
  3. Set "Grace days": the days after the due date before a fee is added, from 0 to 365.
  4. Choose the "Kind of fee": "Percent of the balance" or "Flat amount". For a percent, type the "Percent", for example 1.5, up to two decimals, 0 to 100. For a flat fee, type the "Flat amount".
  5. Choose "How often": "Once" or "Every month".
  6. Set "Most fees on one invoice" (1 to 12). This matters when the fee repeats every month.
  7. Set "Most in fees on one invoice", the cap. Type 0 for no limit.
  8. Save. A message says "The late fee rules are saved."

Preview and run #

  1. Under "Run late fees", choose "Preview". It lists the invoices that would get a fee, with Invoice, Customer, Period and Fee, under "Fees a run would add". It changes nothing. When none are due it says "No invoice needs a late fee right now."
  2. Choose "Add late fees now" to add them. Confirm the question. A message says "Added ... fees, ... in all."
  3. The list "Late fees added" keeps a record of each fee.

How a fee is worked out #

  • The fee is a line on the invoice, and it raises the invoice total. Late fees carry no tax.
  • A fee is added once for each period. Running again adds nothing new for a period that has its fee.
  • Period 1 starts the day after the grace days end. With "Every month", a new period starts every 30 days, up to "Most fees on one invoice".
  • A percent is worked out on what was owed before any late fee, so fees never compound. Percentages round half up.
  • The cap trims a fee so the fees on one invoice stay within it.
  • Void and paid invoices never get a fee.
  • Pop Dispatch runs this by itself every hour.

For example: a fee of 1.5 percent, 5 grace days, every month, on a balance of 200.00. On day 6 past due a fee of 3.00 is added. On day 36 a second fee of 3.00 is added, up to the most fees you set.

Technical details
  • Routes: GET and PATCH /settings/late-fees (owner changes; owner and manager read), POST /late-fees/run with an optional dry_run (owner and manager), GET /late-fees (money roles).
  • The rules are stored as percent_bps (basis points), flat_cents, repeat, max_fees and cap_cents.
  • The hourly run goes through every business. A failure for one business is skipped and tried again at the next check.
  • Turning on with no fee set is refused: "Set a fee above zero before turning late fees on."

If something goes wrong #

  • "Check the grace days, percent and amounts.": grace days run from 0 to 365, and percent from 0 to 100.
  • "Set a fee above zero before turning late fees on.": enter a percent or a flat amount.
  • "Late fees are switched off. Turn them on in Settings, Late fees.": tick "Add late fees to overdue invoices" and save.
  • "Only the owner can change late fees.": ask the owner.