The “Penalty” field on an invoice (that says, for example “0.5% per day”) is informative. If you would like to enforce it on a particular customer when they pay late, we advise to manually create a follow-up invoice.
Handling the penalties manually has a few benefits:
- No extra effort is needed to waive the penalty—if a late payment was due to circumstances not under the customer's control.
- No ambiguity if the customer is paying by wire transfer. If the penalty were automatic, the customer would have to be calculate how much they need to pay depending on the date—and the store might sometimes not receive it on the same day.