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Invoice late fee wording for Product Management

all right let's get practicing in QuickBooks Online grab the link below in the description so that you can follow along [Music] all right here we are in the Qbo gym and the Qbo gym is a place where we have numerous exercises that simulate real life scenarios that you may encounter as a bookkeeper every single month we come out with a new set of different exercises for you to practice and complete and we break it down for you into four different categories so it's a day we are going to be working in the May cardio section at the top here is a video that talks about what's going on in Craig's world that month he is our fictitious business owner further down is an interactive quiz to kind of test your knowledge related to the video up above and then at the bottom here we have all of the exercises within this section so today we are going to practice setting up late fees and sending invoices with different terms you will need to be in the sample company to do this exercise if you are not sure how to get into the sample company or get your own free qboa account just click on the link below in the description so our scenario today is that Craig asks you to send an invoice to Freeman Sporting Goods for one rock found three hours of installation at seventy dollars per hour they always pay late and so he has set their terms to Net 10 with an additional fee for every day that they are late paying so let's see how we would set this a couple notes here before we go into the exercise late fees are handled in a system or are handled on both a system-wide and an individual customer level first thing that you have to do is you have to turn it on in the accountant settings it's important to note here that once it is turned on Qbo will will assign a late fee schedule that you set up to all of their customers not just one but all of them um so while you can disable it for any customer that you don't think that it applies to you do have you will you have to do this individually excuse me um you can't do it with more than one customer you can't do it in bulk or in batch or anything it has to be individually done so once it is turned on you can set an individual late fee schedule per customer that is different than one that is set up in the accountant settings the one in the account settings is kind of like that overall applying kind of to everybody but for individual ones if you want to change it you can always make that adjustment later and then finally one note here is that late fee schedules they will not apply to invoices that are already outstanding or that are in the closed period it's only for ones that are brand new not for ones that are kind of hanging out there and you're waiting for them to pay um just so just keep that in mind if you are doing this in real life ever for a customer for a client um that you would need to know that it only applies to ones after you turn this on so let's get started and get this turned on to begin with to do that we're going to go to the ear gear icon and select account and settings so here I am in the sample company this is the dashboard we're going to go up here to the top right corner where the gear icon is click on that and then click on account in settings and you will see this pop-up for you we want to go over to the sales Tab and then click on the late fees section to make it editable so let's go ahead and do that on the left side here click on sales and then down here you see this late fees just go ahead and click anywhere into that box and that's how it will become editable um we want to turn the slider on that says default charge applied to overdue invoices keep a note here that at this time the sample company will not allow you to create a late fee that is a percentage of the balance however we can change this in the Freeman Sporting Goods customer record so let's first you'll see what I mean in a second let's go ahead and turn this on so just click on this little slider here you know that it's turned on because it's green and because all this other information has appeared what we were talking about before is this right here you can only put a dollar amount you can't put the percentage um so we are going to enter any number um this is going to change when we record this for Freeman um so let's just go ahead and type in one two three we'll say that that is what the late fee is it's a very highlight fee but that is the late view we're gonna put in here um keep in mind too that Qbo will automatically add a late fee product to the product and services list this will automatically be applied to any outstanding invoices when they become overdue not current ones but when they become overdue that is when it will show up so now that we have done that we're just going to go ahead and save and then we'll be done so let's go ahead and click on the green save button and now we can go ahead and click on the oh I'm sorry we can click on the X down here or we can click on the green done button I'm going to click on the done button and now we are back to the dashboard so now that it's turned on we need to change the settings for Freeman Sporting Goods so in the left nav bar we're going to click on customers and leads so over here left nav bar click hover over the customers and leads and then click on customers and you will see our whole customer list up here we want to go ahead and find the one for Freeman sporting goods and then click on that row and just a note here you will see there's three different ones here for Freeman Sporting Goods this is for all of their locations we're going to click on this top one this is the parent this is like their main account um so this is the one that we want so go ahead and click into that anywhere on that line and you will see their customer profile up here and all of the activity that they have um we are going to click on late fees which is up here um also if you have any um pop-up set up here go ahead and click out of those I'm going to click into this late fees little category here it is showing up here because we have enabled this in the account settings uh just a few moments ago um you will notice that late fees is automatically turned on by default in a relief scenario you would need to disable this for any customer that does not apply to so if you have other customers you will need to that you don't want this applied to you're going to have to go into their customer profile like you just did here and you're going to have to turn this off for each one all right so let's um the finish move back into the exercise here we're going to click on customize and then click percentage of remaining and add five for five percent so here I we're going to click on this radio button that says customize we're going to select percentage of remaining balance and then we are going to change this to five so five percent is what we want and then we are going to add the frequency to per day and that is because he said that he would charge a late fee for every day after they were supposed to pay so um let's go ahead and click on that um which under frequency go ahead and put per day you'll notice here that there is this grace period that you can always adjust and you can add that for customers if you want to give them a grace period um but Craig had said that he is already giving them 10 days to pay it and likely um it's likely longer for other customers but he said he's giving them 10 days to pay it so he does not need to include an additional grace period but at least in real life you do have that option if it's something that you want to do now we are just going to go ahead and click on the green save button and now that has been saved there's this little note here that says save usually when things are saved in Qbo you see a little pop-up here it's down here it just tells you that it's uh saved for you so um while we are in the Freeman record we're going to go ahead and change the terms to uh that Net10 so that every time that we create an invoice for them it will automatically be set that way so um since this was at Craig's request we're going to go ahead and click on the edit button so at the top here there's this white edit button click on that and you'll see their customer profile appear here we are going to scroll down until we get to the payment section and then in the terms drop down select Net 10 and then save it so back here scroll down until you get to payments section here there is this terms button right there go ahead and click into that and then select Net10 so now anytime an invoice is created for Freeman this is the terms that are automatically going to show up and you'll see that in a moment when we create an invoice go ahead and click on the green save button and now that has been saved for us so now that the late fee structure and the terms are all set up we're going to go ahead and invoice Freeman for the rock Fountain and the hours worked so from this page we can actually just click on new transaction and then select invoice so click on here new transaction and then select invoice you could before I click on this there's other ways to create invoices like clicking on the plus new button and doing invoice the nice thing here is that by doing it from the customer profile itself you will see that when we click on invoice uh all of their information has already populated for us so it's it's one less step that we have to do trying to find the customer here so that's pretty neat a little shortcut there so now let's go ahead and fill the rest of us out you'll notice that the correct terms and the late fee structure are in place so here's those terms and it's showing here that net or late fees apply so we are good there um in the product service grid we're going to select Rock Fountain since that is one of the things that he did so go ahead in this box if you click into it twice and you start typing in rock you will see Rock Fountain up here click on that and then we need to also bill for the installation hours so in the um in that same thing we're going or that same field on the second line we're going to do landscaping installation so let's click into that two times I'm going to type installation start there we go installation is right there and that shows the description of it he said that there were three hours so we need to change the quantity to three and we said that it was at a rate of seventy dollars so let's go into this rate type 70 and if You tab over now you will see that it has updated to this 210 the 3 times 70 equals 210. and now we are just going to go ahead and save and close this in a real life scenario if you have the email address for the um for the customer you can always send Save and send it directly to them but for the purposes of this exercise we're going to go ahead and save and close so click on the Arrow here and then click on Save and close and there we go we have set up a late fee structure and uh terms and now sent an invoice and if you have any questions or want to know more about the qvo gym just go ahead and click on the link below in the description we're moving through the cardio section with our next exercise where we practice receiving payments and I will see you in the next video foreign [Music]