Use the Charges Setup tab (Receivables > Options) to establish penalties and service charges to apply to receivables invoices. Once set up and you've created an invoice, you can apply the charges under Receivables > Payments. For more information, see "Service Charges and Penalties".
Penalties are fees for not paying on a balance due in a timely manner for a service or product, while service charges are additional charges related to the purchase of a product or service.
To establish service charges and penalties to apply to receivables invoices:
- Go to Receivables > Options > Charges Setup tab.
- Click the button to create a new charge or penalty.
- Enter a description of the penalty or charge in the Code field.
- From the Type drop down, select Service or Penalty
- In the Based On field, select to base the charge or penalty off Dollars/Cents or Percents.
- Enter the amount in the Amount field.
- If basing the charge on a percent, be sure to enter this amount as a percent in decimal form (e.g., enter 5% as .05)
- To delete a service charge or penalty, click on it and press .
- Click Save when finished.
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