Apply penalties—Accounts Receivable

When you apply a late fee to a customer invoice, Intacct automatically creates and posts an AR adjustment. You can then view, edit, or print the adjustment, or email it to the customer.

1. Go to Accounts Receivable > All > Payments > Penalties.

2. Optionally, set filters to narrow the focus to only those invoices you want to apply penalties to.

   Set filter options

   1. To filter by a range of customers, in the From customer and To customer dropdown lists select a beginning and ending customer. The dropdown lists show customers sorted by ID number.

   2. To set additional filters to target specific eligible invoices, select more filters in the Additional filters section.

      1. In the first column, in the first dropdown list select the field on which you want to filter. Choose from Customer, Customer ID, Invoice amount, and Total due.

      2. In the second column, select a relevant operator, for example Equals or Contains.

      3. In the third column, enter the appropriate value.

      Select the filters in the order that you want them to be applied. For example, if you want to filter by customers whose name contains the word "Network" first and then filter by invoice total, in the first row select Customer in the first dropdown list and select Contains in the second, and select Total due and Equals in the second row.

3. Select View.

   Intacct displays the Select Invoices to Apply Penalties page, which lists the overdue invoices that meet your filter criteria.

   The header bar shows you how many invoices were found. To change your filter options and revise the list of invoices displayed, select Filter.

4. Select the Penalize checkbox next to the invoices you want to apply penalties to.

5. Set the penalty options as required.

   Set penalty options

   These settings apply to all the invoices you select for applying penalties at this time.

   • In the Description for penalty document field, enter a meaningful description, for example "Late fee", or accept the default, which is Penalty.

     When you apply penalties, Intacct creates an adjustment within a summary named PENALTIES. The description you enter here is used in the PENALTIES summary, and in the adjustment if it is printed.

   • In the Calculate penalty by section, select one of the following:

     • Select Invoice amount to calculate the amount of the penalty based on the entire invoice amount.

       If an invoice amount is zero, it does not appear as available to penalize. Because the amount is zero, the calculated penalty is also zero.

     • Select Amount due to calculate the amount of the penalty based on just the remaining amount due if the customer has partially paid the invoice.

     For example, if you have an invoice of $100 and the customer has paid $75 leaving an amount due of $25, you can penalize the entire invoice of $100 or only the amount due of $25.

6. Select Save.

View the adjustment

Based on the associated terms, Intacct creates a summary adjustment to account for the penalty.

1. Go to Accounts Receivable > All > Payments > Adjustments.

2. Find the row with the appropriate adjustment.

   Penalty adjustments are easy to find in the list because they have a Summary title PENALTIES - <timestamp>. The timestamp is a combination of the date and time that the penalty was applied, for example, PENALTIES - 09/28/15 16:32:42.

3. Select Edit, View, or Print as needed.

   For example, if you want to send a copy of the adjustment to the customer, select Print.

   Intacct creates a PDF of the adjustment, which you can then save, and attach to a customer email.