Formula pricing is a specialized pricing model on subscription products that allows a calculated amount to be charged, used in a specific case for handling late fees.
To enable the formula pricing/late fee, contact Fusebill Support.
You can charge late fees using a fixed amount or a percentage amount or a combination of both based on a minimal value.
Note: For a simple late fee solution, a purchase of a one-time fee can be used to manually add a late fee.
To set a late fee for a specific amount
When an invoice becomes overdue, you can set a fixed amount late fee to the invoice. To set a fixed late fee to an overdue invoice, complete the following:
- In Fusebill, in the left menu, navigate to Catalog.
- On the Catalog page, under the Products section, click Create Product.
- On the Create Product page, under Product type select Recurring.
- Provide a name for the product, for example, Late Fee.
- Click Save.
- On the Catalog page, click Plans.
- On the Plans page, select a plan. From the products tab, select the Late Fee product and click Assign Product.
- On the Add Plan Product page, in the Pricing section, from the Type dropdown menu, select the Formula.
- In the Pricing column, enter 0 for When Invoice Opening Balance and Charge %.
- Enter the fixed late fee amount to charge in the With a minimum charge of. In the example, it is set to $5 when an invoice goes unpaid.
- Click Show Advanced Settings below the pricing section.
- Under Quantity Management,
- Track unique quantities should be set to Off.
- Quantity should be set to 1.
- Fixed Quantity should be On to lock the quantity at 1.
To set a late fee for a percentage of the overdue amount
A late fee of a percentage of an overdue amount is typical of an interest rate type late fee. A percentage of the outstanding balance is calculated and added to the invoice amount. To set a percentage based late fee, complete the following:
- Continue as described above to step 9.
- In the Pricing section, enter a value for When Invoice Opening Balance*. This is when the formula should be applied. Entering 0 means that as soon as the balance is higher than 0, the formula would activate.
- For Charge %, enter a percentage to be charged against the outstanding balance if the opening balance is higher than what was entered in step 2.
- Enter a value for With a minimum charge of if there is a minimum charge to be applied for overdue invoices. This value is applied when the charge % amount is less than the minimum charge, in which case the minimum charge would be applied and not the charge %.
- Click Show Advanced Settings below the pricing section and configure as listed above.
Special considerations and requirements:
- The late fee product needs to be included with the subscription.
- It needs to be set to be an end of period charge
- Proration needs to be disabled.
- Consideration needs to be made on what it means when a customer adds a new subscription or product while their account is still in poor standing with overdue invoices.
- It applies to the next outgoing recurring charge of the same subscription.
- if there's an opening balance over a threshold, It does not add charges retroactively, only one fee, end of the period.
- It does not charge the customer with a separate automated charge mid-period.
*Opening Balance: This is the balance owing (or on deposit) at the time that this invoice was posted. It does NOT include any charges on the current invoice.