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Automatic Late Payment Fees

Add late payment fees automatically when invoices aren’t paid on time.

Written by Sara Brunvoll
Updated over 2 weeks ago

Set up rules once, and we will automatically add late payment fees to children whose payers have overdue invoices.


How automatic late payment fees work

Once you turn on automatic late payment fees, we check for overdue invoices and add fees based on your rules.

You control:

  • How many days after the due date to apply the fee

  • How much the fee is

  • Different rules for different billing cycles (if you use more than one)

What happens:

  • When a payer has an overdue invoice, Famly adds a late payment fee as a purchase on their child based on your rules

  • The fee appears on the child's next invoice - it's not charged immediately


How to set up auto late payment fees

You set up automatic late payment fees directly from your Billing & Payment settings. Go to your Billing & Payment settings, then edit an existing billing cycle or add a new one. From there, you can turn on automatic late payment fees and define the rules that should apply - including when the fee is added and how much it is.

Different billing cycles

If you use multiple billing cycles, you can set different rules for each:

  • Turn automatic fees on for weekly, off for monthly

  • Set different fee amounts per cycle

  • Choose different day thresholds per cycle

☝️ If a child has multiple payers on different billing cycles with different late payment fees, we apply the cheapest fee and split it between payers based on their payer split.

Turning automatic late payment fees on and off

You can turn automatic late payment fees on or off at any time.

  • When you turn the feature off
    Any late payment fees that have already been added will stay on the child. They won’t be removed automatically. You can manually delete the fees from a child profile.

  • When you turn the feature on
    Famly adds a late payment fee to all children connected to payers with overdue invoices, based on the rules you’ve set up.

When will late payment fees appear?

Late payment fees aren’t added instantly when you turn the feature on.

  • In the background, Famly checks every 15 minutes whether a late payment fee should be applied

  • This means you may see a short delay before fees appear for payers who already have overdue invoices

Who will get a late fee?

If you need to check who would receive a late payment fee when you turn the feature on, you can look at which payers currently have outstanding balances. If they have past invoices that are overdue or a latest invoice that matches the late payment fee rules, these payers will get a late payment fee added.

You can check outstanding balances in two places:

  • On the payer profile

  • In the Aging report, which shows all payers with outstanding balances

💡 You can't exclude specific payers from automatic late payment fees ahead of time.

Manually vs. automatically sent invoices

It makes no difference. Late payment fees apply to any overdue invoice, regardless of how it was sent.


How to see who has a late payment fee added

You have a few ways to track late payment fees before they’re invoiced.

From the Finance overview

  • Use the Purchase filter and select Late payment fee

  • This shows all children with a late payment fee that hasn’t been invoiced yet

  • You can see the purchase details in the side panel under Purchase category

From the child profile

  • Go to the child’s Billing tab

  • You’ll see the late payment fee listed as a purchase

  • From here, you can also delete the fee if needed

Removing late payment fees

Before the fee is invoiced: Add a discount to the purchase from the child's Billing tab.

After the fee is invoiced: Cancel the invoice, delete the fee, and resend the invoice. Or add a credit to the payer instead.

☝️ If you remove a late payment fee but the payer still has an outstanding balance, Famly will add the fee again automatically as long as the feature is turned on.

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