Set up automatic late fees on overdue invoices to encourage prompt payment and compensate for collection delays.
Written by Chloe NguyenUpdated over a month ago3 min readBeginner
What this guide covers
This guide explains how to configure late payment fees in JobsiteOn. You will learn how to set up fee rules, how fees are applied to overdue invoices, and how they appear to the customer.
Why use late payment fees
Late fees serve two purposes:
Incentivize prompt payment — Customers are more likely to pay on time when they know a fee will be added.
Compensate for delays — Late payments affect your cash flow. Fees help offset the cost of collection efforts.
Setting up late fee rules
Navigate to /settings/invoices or /settings/billing.
Find the Late Payment Fees section.
Configure the following:
Fee type — Choose percentage of the invoice total or a fixed amount.
Fee amount — The percentage rate or dollar amount.
Grace period — Number of days after the due date before the fee is applied (for example, 7 days).
Frequency — Whether the fee is applied once or recurring (for example, monthly).
Click Save.
Screenshot:The late fee configuration showing a 2% monthly fee with a 7-day grace period.
How late fees are applied
When an invoice passes the due date plus the grace period:
The late fee is calculated based on your settings.
The fee is added to the invoice as a separate line item.
The customer sees the updated total when they view the invoice.
If the fee is recurring, additional fees are added at each interval until the invoice is paid.
Tip: Include your late fee policy in the notes or terms section of every invoice so the customer is aware before the fee is applied.
How customers see late fees
On the payment portal and invoice PDF:
Late fees appear as a separate line item labeled "Late Payment Fee."
The updated total includes the original charges plus the accumulated fees.
The customer can see when the fee was applied.
Animation:An overdue invoice updating to show a late fee line item being added after the grace period expires.
Waiving a late fee
If you want to remove a late fee for a specific customer:
Open the invoice detail page.
Click Edit.
Remove the late fee line item.
Save the invoice.
Note: Waiving a fee on one invoice does not change your global late fee settings. The fee will still apply to other overdue invoices.
Legal considerations
Before enabling late fees, verify that:
Your local jurisdiction allows late payment fees at the rate you plan to charge.
The fee is disclosed in your terms and conditions before the invoice is sent.
The grace period meets any minimum requirements in your area.
Best practices
Start with a reasonable fee (1-2% monthly) to avoid alienating customers.
Always include a grace period of at least 7 days.
Mention the late fee policy in your invoice terms for transparency.
Waive fees selectively for long-standing customers who pay late for the first time.
Review late fee collections monthly to ensure they are working as intended.
