Calculating Late Fees

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General Information

The FRAZER system provides flexibility for processing late fees.  The system can display a message each day prompting you to run the late fee program.  This message does not need to display and the program can just be selected to run when needed.  For more information on modifying this setting, click here:  Other Options

 

In order to calculate late fees,

•a percentage needs to be entered for calculating the fee and
•the number of days a customer needs to be past due to have a late fee assessed. 

 

There are also options to

•enter the late fee as a flat rate instead of a percentage
•A maximum late fee can be included which limits the amount of the late fee that can be applied. 
•It is also possible to determine which amount to assess the late fee on.  Options include the Payment Amount (even if current amount due is lower) or the Current Amount Due (but no more than the regular payment amount).

If you have not already set up these options, click here: Other Options

 

Late fees are applied to a payment cycle only once.

So for example, if a $5.00 late fee was assessed on a customer because they missed their June payment (monthly payments) they would not receive another late fee unless they also did not pay their July payment. 

A late fee will not be applied if there was a partial payment that was enough to move the payment date ahead.  You determine what percentage of a payment is enough to move the payment date ahead.  For more information on this setting, click here: Payment Options

 

When the late fee program is run, a report displays that shows all of the late fees that were charged.  You can also view the late fees by displaying the transaction history for the customer or by printing the Transaction Listing Report for Late Fees (R-3-5-4). There will be an entry for each late fee that was charged.  Late fees are included in a customer's fees balance.

How Do I Get There?

•Select Customers on the main gray FRAZER screen
•Select 4 – Generate Late Fees.
Used Car Dealer Software by Frazer Computing, Inc.