Removing or Reducing Late Fees During Payment Posting

Overview

While you are posting a payment, you can now remove or reduce the late fee associated with a particular invoice. This feature streamlines the payment posting process and improves tracking of late fee adjustments.

How to Remove or Reduce Late Fees

Step-by-Step Instructions

1. Click the 'Post Payments' icon
2. Navigate to the correct customer account
3. Highlight the invoice(s) that have late fees you want to adjust
4. Click on Change Late Fee
5. Make your adjustment (remove completely or reduce the amount)
6. Complete the payment posting process

Benefits of This Feature

Improved Workflow

This feature helps you avoid using the Write-Off button for late fees, keeping your financial records cleaner and more organized.

Better Tracking

An adjustments record is automatically written when you change late fees, allowing you to:

• Track how much in late fees is forgiven
• Generate reports on late fee adjustments
• Maintain audit trails for customer service decisions
• Monitor trends in late fee waivers

When to Use This Feature

Common scenarios for adjusting late fees include:

• Customer goodwill - Waiving fees for good customers with occasional late payments
• Payment plan agreements - Reducing fees as part of payment arrangements
• Billing disputes - Removing fees when delays were due to billing issues
• System errors - Correcting incorrectly applied late fees
• Special circumstances - Handling extenuating circumstances on a case-by-case basis

Write-Off vs. Change Late Fee

Use Change Late Fee When:

• Adjusting late fees during the payment posting process
• You want proper tracking of forgiven late fees
• You need an adjustment record for reporting

Use Write-Off When:

• Writing off bad debt or uncollectible amounts
• Handling non-late-fee adjustments
• Processing other types of account adjustments

Tracking Late Fee Adjustments

The system automatically creates adjustment records that allow you to:

• Review late fee forgiveness by customer
• Analyze late fee adjustment trends
• Report on customer service decisions
• Maintain compliance and audit trails

Best Practices

To effectively manage late fees:

1. Use Change Late Fee during payment posting for efficiency
2. Document reasons for late fee adjustments in customer notes when appropriate
3. Review adjustment reports regularly to monitor trends
4. Establish clear policies for when late fees should be waived
5. Train staff consistently on late fee adjustment procedures

Need Help?

Still have questions? Contact Cornerstone Holding Co. 847-405-9517 or email us customer.success@alarmbills.com