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Late Fee Amounts

Modules > Accounts receivable > Setup > Customer posting profile > [select a profile] or select New > Interest code

Use this page to set up late fees for specific customer posting profiles. You can set up a flat fee, percent fee, and a separate account for sales reporting fees and charge fees.

This work flow explains how to set up late fees for Property Lease Management transactions. For more information on setting up interest codes, see Set up interest rates for an interest code in the Microsoft Dynamics 365 for Finance and Operations documentation.

Set Up Late Fee Amounts

To set up your late fee amounts, do the following:

  1. Go to the customer posting profile that you want to use. Select the highlighted Interest code which opens the Interest code page.

  2. Go to the Earnings by Currency FastTab.

  3. For sales based late fees do the following:

    1. Under Sales based rent fee account, select the account where the late fees are posted to the G/L.

    2. In the Sales reporting late fee field, enter a number. This is the amount that is charged when a late fee is created and posted. It is a flat fee.

  4. For charge fees, do the following:

    1. Under Sales based rent fee account, select the account where the late fees are deposited.

    2. Under Grace period, enter the number of days before a late fee is charged.

    3. Under Calculation, select the type of late fee: flat fee or percentage fee.

    4. In the Amount field, enter a number for the late fee. This is the amount that is used to determine the late fee charge, depending on the type of calculation.

  5. Enter and change any other relevant fields on the page. For more information, refer to Set up interest rates for an interest code in the Microsoft Dynamics 365 for Finance and Operations documentation.

After you have set up your late fee amount settings, they are linked to customer posting profile.

Fields

The following field boxes are available: 

Property lease management interest code fields
Field Description
Sales based rent fee account Select the account for the sales based rent fees.
Sales reporting late fee Enter a number for the sales reporting fee.
Charge fee account Select the account for the charge fees.
Grace period Enter the number of days before a charge becomes outstanding. For example, if you set the grace period number as five, then tenants have five days after their charge is due before a late fee is applied.
Calculation

Select the calculation type:

  • Flat fee: A specific amount that is charged when a lease payment is outstanding or when the grace period has ended.

  • Percentage fee: Calculated based on the outstanding payment that is due.

    For example, if a tenant has a monthly rent of $2500, but has only paid $2000, then a late fee is calculated based on the outstanding $500. In this case, if the percentage amount is set at ten, then the late fee would be $50 – ten percent of $500.

Amount Enter the amount for the late fee. Depending on the calculation type you select, this value is either a flat fee or a percentage.

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