Accruing Late Fees

Overview

Companies that do accrual accounting or prepare reports for a lender often need to track changes in receivables with date specificity. The late fee accrual feature allows you to assess a one-time late fee to each invoice with date stamping for easy tracking and reporting.

How Late Fee Accrual Works

When enabled, the system will:

• Assess a one-time late fee to each invoice that meets your past due criteria (past due days + late fee grace period)
• Date stamp the late fee for accurate tracking
• Provide visibility into when late fees were assessed through various reports

Enabling Late Fee Accrual

Location: Utility tab > Invoice Setup Options

Action: Check the box for Only Calc Late Fee Once

This setting changes late fees from recurring calculations to one-time assessments.

Reports for Tracking Late Fees

Invoice History Report

The Invoice History Report now includes an option to show the Late Fee Date on the report.

Benefit: You can see exactly when each late fee was assessed.

Adjustments Tracking Report

This report tracks the date that a late fee is manually adjusted.

Use Case: Monitor when late fees are forgiven or modified for audit purposes.

Aging Report with "As of Date"

When you calculate late fees only one time, the Aging Report allows you to enter an "As of Date."

Features:

• View aging as of a specific date rather than current date/time
• Account for late fees in aging calculations
• Any accrued late fees are counted as of the last date the late fee accrued

Benefits of Late Fee Accrual

Accrual Accounting Compliance

• Properly track when late fees are earned for financial reporting
• Date-specific receivables changes for accurate accounting

Lender Reporting

• Provide detailed documentation of receivables changes
• Show when late fees were assessed with specific dates

Better Tracking

• Historical record of all late fee assessments
• Easy identification of adjusted or forgiven late fees
• Historical aging reports using "As of Date" feature

Simplified Management

• Late fees assessed once per invoice
• No recurring calculations to manage
• Clear audit trail of all late fee activity

When to Use Late Fee Accrual

Use this feature if your company:

• Uses accrual-based accounting
• Prepares reports for lenders or investors
• Needs detailed tracking of receivables changes
• Requires date-specific financial reporting
• Wants simplified late fee management

Difference: Standard vs. Accrual Late Fees

Standard Late Fees:

• Can be calculated repeatedly on the same invoice
• Late fees may compound over time
• Less date-specific tracking

Accrual Late Fees:

• Calculated one time per invoice
• Date stamped for tracking
• Better for financial reporting
• Clear audit trail

Important Considerations

• Once you enable "Only Calc Late Fee Once," the system behavior changes for all late fee assessments
• Historical aging reports become available using the "As of Date" feature
• Late fee adjustments are tracked with dates for audit purposes
• This setting is recommended for companies with specific accounting or reporting requirements

Need Help?

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