How to Collect Penalty Payments from Customers

Collect Penalty on Overdue Invoices

Follow the steps below to apply and collect penalties on overdue invoices.

Login into your AltheaSuite account using your credentials.

To collect penalty from customers, you must first define a penalty rule.

Follow the tutorial to set it up :  https://www.altheasuite.com/tutorials/how-to-define-penalty/

The penalty amount will be calculated based on the defined rule when clearing invoices through the Receive Payment screen.

Go to Sales > Receive Payments, click on New.

Select the customer with the overdue invoice.

Choose the invoice to be cleared – the system will calculate the penalty based on the defined penalty rule. 

Penalty : Displays the penalty amount calculated based on the defined penalty rule.

Adjusted Penalty Amount : If the customer is paying only a part of the total penalty, enter the amount being paid here. The unpaid penalty will be carried forward and included in the interest calculation for future payments.

Finally, you can collect the amount using the customer’s preferred payment method.

To view the Financial transaction related to a penalty, go to Receive Payments, open the specific payment received, click on the context menu (three dots) and select “View Financial Transactions”.

You can view the financial transactions associated with a payment that includes a penalty.