Show TOC### Assigning Late Payment Fees

#### Procedure

In this step, you assign late payment fees to each of the company payment terms. The system uses these fees to calculate interest rates in the *Customer Receivables by Due Dates* report.

You can assign a dunning interest rate either per payment term or to multiple payment terms.

From the SAP Business One

*Main Menu*, choose , and find the payment term code to which you want to add a dunning interest rate.Choose

*Dunning Interest Rate Name*.The

*Late Payment Fees*window appears.Enter

*Code*and*Name*.In

*Days after Due Date*, enter the number of days after which interest applies.For example, if you enter 10, the system starts calculating the interest rate 10 days after the invoice's due date.

If applicable, specify the

*Interest %*and a*Fixed Sum*.To define the number of days regarding the calculation of interest only, specify the

*Number of days in month*.Choose the method of calculating the interest rate:

*Use original exchange rate from the invoice*Bases the exchange rate on the invoice posting date

*Use Current Exchange Rate*Bases the exchange rate on the posting date of the report/letter

If you want to issue dunning letters for partially paid invoices, check

*Calculate Interest on Partially Paid Invoices*.The interest rate calculated is based on the invoice open amount.

To save this late payment fee and close the window, choose

*Add*.