---
title: Late Fees and Interest on Overdue Invoices
description: Turn on late fees and interest, set rates per customer, then review overdue invoices and choose which to charge, never automatically.
---
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# Late Fees and Interest on Overdue Invoices
## Set your grace period and rates once, and MetaFleet works out the fee on every past-due invoice.
**For:** Owners, managers and billing staff · **Permission:** Manage account settings (set the policy), Invoice approval (apply fees) · **Time:** ~5 minutes to set up
Late fees are a web-admin tool. They aren't on the technician mobile app.
### Quick summary
1. Go to **Settings › Fees & Surcharges**, open the **Late Fees** tab and click **Edit**.
2. Turn on **Charge late fees on past-due invoices** and set your rates.
3. Tick the one-time confirmation, then click **Save**.
4. Optionally set different rates for one customer, on the customer's **Late fees** card.
5. When fees are ready, click **Review & apply** on the **Overdue fees** card on the Billing Hub, tick invoices and click **Apply fees to N invoices**.
### Before you start
- **To set the policy:** permission to **manage account settings**. Without it you can see the policy but not the **Edit** link.
- **To apply fees:** the **invoice approval** permission. These are two separate permissions, so you can let someone set the policy without letting them charge.
- **How the policy resolves:** three tiers, and the most specific one wins. A **per-customer** override comes first, then a **per-brand** policy, then your **tenant default**.
### Turn on late fees and set your rates
Go to **Settings › Fees & Surcharges** and open the **Late Fees** tab. The **Late fees** card shows whether late fees are **On** or **Off**, and the **Where late fees land** table below it shows each charge, its amount, when it's charged and its tax class. Click **Edit**.
Turn on **Charge late fees on past-due invoices**, then fill in any combination of these fields. Leave a field blank for none. A flat fee with no percentage or interest is fine.
- **Grace days:** how many days after the due date before a fee can apply.
- **Flat fee ($):** a fixed amount, charged once after the grace period.
- **Late fee (%):** a percentage of the balance, charged once after the grace period.
- **Interest (%/mo):** monthly interest on the unpaid balance, including interest already charged.
- **Late-fee notice:** optional text, up to 280 characters, shown on your invoices and estimates.
An **Example** line under the fields shows what your rates would charge on a $1,000 invoice 45 days past due.
*The Late fees form with sample rates. Save stays greyed out until the confirmation is ticked.*
> **Tax.** Late fees and interest each have their own tax class. Until a Tax Group taxes them, late fees and interest are **Not taxed**. In the **Where late fees land** table, the **Tax groups** link shows which Tax Groups tax them. If none do, the fee isn't taxed.
>
> When a group does tax them, a late fee in a class that's taxed is taxed when it's applied. The tax is worked out that day, at that day's rates, tax by tax and after the customer's exemptions. It doesn't use the rates the invoice went out with.
>
> The **Sales Tax Export** lists a late fee in the month it was charged (see [File Sales Tax With the Sales Tax Export](https://support.metafleet.ai/sales-tax-export-report?hsLang=en)).
### Tick the one-time confirmation, then save
The first time you turn this on, a confirmation checkbox appears and **Save stays disabled until you tick it**. By ticking it you confirm that your customer agreements authorize these fees, that you're responsible for the legality of the rates, and that MetaFleet provides the tool only and gives no legal or financial advice. You only do this once. After you save, this policy is the default for every customer.
### Optional: set different rates for one customer
Your default applies to everyone. You can change any field for a single customer: a longer grace period for a key account, or no late fee at all. Open the customer under **Company Details › Companies** and find the **Late fees** card. Click **Edit**.
- **Charge late fees:** choose **Inherit**, **On** or **Off**.
- Each rate field shows the inherited value under it, for example **Inherited: 0**.
- Leave a field blank to inherit it. Enter a value to override just that field.
- A field you've set shows an **Inherited** undo control next to it. Click it to revert just that field to your default.
- **Late-fee notice:** leave blank to inherit your default notice.
- A line at the bottom reads **Effective for this customer** and says what this customer will be charged.
A brand can carry its own policy too; set it on the brand's edit form.
*A customer's Late fees card. Blank fields follow your default.*
### Open the Overdue fees card on the Billing Hub
When invoices go past due and fees are ready, an **Overdue fees** card appears on the **Billing Hub**. It reads like "$141.20 in late fees ready across 2 overdue invoices." The card only appears when there are fees ready to apply, and only for users who can apply them. Click **Review & apply** to open the review page.
### Review the fees and tick the invoices to charge
The review page lists each overdue invoice with its fee broken out into flat fee, late fee and interest, so you can see how it adds up. Tick the invoices you want to charge. A bar at the bottom shows **Total to charge — up to $X**.
### Apply the fees
Click **Apply fees to N invoices**. The **Apply late fees** window shows the most you'll charge. MetaFleet re-computes each fee at the moment you apply it, so the actual charge can be **lower, but never higher**, than the amount shown. Click **Apply fees** to confirm.
MetaFleet then adds the fee to the invoice total, records it on the invoice and notifies the customer with an in-app alert. The customer also gets an email if they receive billing emails. The list updates to show the fees you just applied.
> **Nothing is charged automatically.** MetaFleet computes the fees, but they're only applied when a user with the invoice approval permission reviews them and confirms.
### What gets charged and what doesn't
- **All service types.** Late fees apply to repair orders and to PM and Inspection orders.
- **COD customers are never charged.** Cash-on-delivery customers don't get late fees, even on a past-due invoice, and neither do customers with no payment account on file.
- **Paid invoices and invoices still in the grace period are skipped.** They don't appear as ready to charge.
- **No double-charging in the same period.** A charged invoice shows a **Charged this period** badge and can't be charged again that period. Turn on **Show invoices already charged this period** to see them.
- **Deactivated brands are blocked.** An invoice on a deactivated brand is flagged and can't be charged.
- **QuickBooks.** If your account is connected to QuickBooks, a fee applied before the order's invoice reaches QuickBooks goes with that invoice as a line. A fee applied after goes as its own invoice. If the order's invoice isn't in QuickBooks yet, the fee waits and goes once it is. See [Payments, Refunds, Credits and Late Fees in QuickBooks](https://support.metafleet.ai/quickbooks-payments-reference?hsLang=en).
### Troubleshooting
| Symptom | Likely cause | Fix |
| --- | --- | --- |
| I can see the Late Fees tab but there's no Edit link | You don't have the manage account settings permission | Ask an admin to grant it, or have an admin set the policy. |
| Save is greyed out the first time | The one-time confirmation isn't ticked | Tick the confirmation checkbox. Save turns on once it's checked. |
| No Overdue fees card on the Billing Hub | Late fees are off, no fees are ready, or you lack the invoice approval permission | Check that late fees are **On**. The card only appears when fees are ready to apply and you can apply them. |
| A customer never gets charged | They're a COD customer, or late fees are set to **Off** for them | COD customers are always excluded. Check the customer's **Late fees** card. |
| An invoice shows "Charged this period" | It was already charged in the current period | This is expected. It stays locked until the next period. |
| The applied charge was lower than the confirmation | Fees are re-computed when you apply | This is by design. The confirmation is an "up to" ceiling. |
### FAQs
**Does the interest compound?**
Yes. Each month's interest is the rate on the unpaid balance plus any interest already charged. One-time fees are never in the base.
**Are COD customers ever charged a late fee?**
No. Cash-on-delivery customers are always excluded, even when an invoice is past due.
**Can a customer be charged twice for the same invoice?**
No. Once an invoice is charged, it's locked for that period and marked **Charged this period**.
**Do customers get notified when a fee is applied?**
Yes. Applying a fee sends the customer an in-app alert, plus an email if they receive billing emails. The fee also appears on the invoice. If you set a late-fee notice, it prints on your invoices and estimates.
**Can I undo a fee after I apply it?**
There's no one-click undo on the review page. Review your selections before you apply. To correct a charge afterward, use your normal invoice adjustment process.
**Who can set the policy and who can apply fees?**
Two separate permissions. Setting the policy needs manage account settings. Applying fees needs invoice approval. If you don't see the **Edit** link or the **Review & apply** button, ask an admin to grant the right one.
**Is this on the mobile app?**
No. Late fees are web-admin only.
### Related articles
- [Approve and send an invoice](https://support.metafleet.ai/approve-and-send-an-invoice?hsLang=en)
- [Payments, Refunds, Credits and Late Fees in QuickBooks](https://support.metafleet.ai/quickbooks-payments-reference?hsLang=en)
- [Set Company Rates and Customer Billing Overrides](https://support.metafleet.ai/set-company-rates-and-billing-overrides?hsLang=en)
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