Set up automatic late fees on overdue invoices

How to set up your late fee policy

1. Go to the workflow you want to add late fees to

   In the workflow, click on ‘policies’.

   

2. Configure your policy timing and Xero integration

   Decide when to apply the fee (how many days overdue), the description on the invoice and what account code to categorise the fee as in Xero. Finally, choose whether to raise the fee as a draft or a posted invoice in Xero. More on that here.

   

3. Set up a fixed fee or accruing interest

   Option one is simple interest that accrues daily from the day the fee starts. Option two is a one-off fee, which can be a fixed amount or a percentage of the invoice.

4. Save your late fee policy

   Your late fee will apply to any invoice that crosses the overdue threshold from step 2. It won’t apply to invoices already past the threshold so to charge one of those, apply a late fee to that invoice manually.

   

Sending your customer a late fee invoice

By default, Trove raises the fee as a draft invoice in Xero, which someone needs to approve before it reaches the customer. More on sending late fees here.

What plans include it

This feature is part of Trove's core set and is included on all plans.

Late fee policies need a connected Xero account, because the fee itself is raised as an invoice in Xero.

Related features

• Apply a late fee to an individual invoice →

  Charge a late fee on one invoice without creating a whole policy. If you have a policy set, you can override your default per customer.

• Send late fee invoices to your customers →

  Trove raises your late fee in Xero in either draft or posted state, then emails it to the customer as soon as it's approved.