What is late payment fee in SAP SBO - SAP Business One?

SAP Term: late payment fee

• Component: SBO

• Component Name: SAP Business One

• Description: An additional charge that is assessed when payments are not made on time.

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• Key Concepts: 
  Late payment fee is a charge that is applied to customers who do not pay their invoices on time. It is a way for businesses to encourage customers to pay their invoices promptly. The amount of the late payment fee is typically determined by the business and can be set as a fixed amount or as a percentage of the invoice amount. 
  
  How to use it: 
  In SAP Business One, late payment fees can be set up in the Accounts Receivable module. The user can specify the amount of the late payment fee and when it should be applied. The user can also specify whether the late payment fee should be applied to all customers or only certain customers. 
  
  Tips & Tricks: 
  It is important to ensure that the late payment fee is clearly stated on all invoices so that customers are aware of it. This will help to ensure that customers pay their invoices on time and avoid incurring any additional charges. 
  
  Related Information: 
  SAP Business One also offers other features related to Accounts Receivable, such as credit limits, payment terms, and dunning letters. These features can help businesses manage their accounts receivable more effectively and ensure that customers pay their invoices on time.