You can create late fees for unpaid charges that appeared on previous statements. These fees can be created manually or automatically. Late fees are generated at the same time finance charges are generated. If your organization assesses late fees and finance charges, they will be added together and applied to the subsidiary accounts.
Before the system can automatically generate the fee, you must set up how those transactions will be created:
· First you must determine the subsidiary accounts that will have late fees created and define the revenue account number to which the fees will apply (use the Subsidiary Definition function). For each subsidiary that will have late fees created, type the account number in the Finance Charge Account # column on the Subsidiary Definition for A/R window.
· Enter the amount of the late fee in the Late Fee column on the Subsidiary Control window.