A late fee is applied to a loan when the Date Received is after the Grace Period. The number of days in the grace period is set from the Numbers tab of the
Moneylender Settings dialog.|
Late fees are handled automatically and cannot be added or removed. If you need to eliminate or create a late fee, adjust the Date Received on a payment record so that it falls within or beyond the grace period.
When payments are applied to late fees, only the amount above the regular payment is applied. If the regular payment is $100 and there are $15 in late fees on the account, a $100 payment is not applied towards late fees. However, a $125 payment repays the late fees in full. The remaining $110 is credited towards repaying the principal and interest.
Any third party fees are deducted from a payment before late fees, interest, or principal.