Applies to: Office Accounting Professional
A late payment charge is an invoice sent to your customer for not paying on time. Office Accounting Professional and Office Accounting Professional Plus help you generate these invoices based on your company preferences.
Sample Late Payment Charge form
Late payment charges are similar to batch invoices. You would normally send out late payment charges on a monthly basis to all your overdue customers, rather than create them one at a time. The Late Payment Charge form helps you achieve this task.
The following applies to late payment charges:
The Late Payment Charge form generates one late payment charge invoice on the selected date for each overdue customer based on the selections in the Preferences dialog box.
In the Preferences dialog box, you can set an annual interest rate, a minimum charge, grace days (don't apply charges if the customer is only a few days late), another fee in addition to the charges, whether to calculate interest on interest and whether to apply the charges from the invoice date or the due date.
You can view or change the company preferences for late payment charges by clicking the Preferences button on the form.
You specify a nominal account where you want to post the income from the charges to (typically an Other Income account).
You can edit the amounts before generating and saving the late payment charge invoices. You can also choose to ignore some of the late payment charges. (In the preceding example, you would typically not charge the 50 pence.)
When you click Save and Close, the late payment charge invoices are generated and can be printed in bulk directly from the Invoice List.
The late payment charge invoice is identical to a regular invoice, except that it is titled Late Payment Charge.
Late Payment Charge invoice
Note: Microsoft Office Accounting 2008 implements late payment charges according to the Late Payments of Commercial Debts (Interest) Act, which means using an actual/365 linear interest convention for calculating late payment charges. The charges are based on the actual days the invoice is late and each year is considered to be 365 days.