Late Fees - A Debit Memo Use Case

a debit memo is a document that records an adjustment to an account to reflect a deduction or charge for example, when a customer fails to pay an invoice on time, a late fee can be issued as a debit memo, and sent it to the customer as part of the invoice preview this feature is in preview permissions required please enable the following permissions in the user role debit memo management view debit memos create debit memos activate debit memos cancel debit memos delete debit memos \# identify overdue invoices and create a debit memo to create a debit memo for an overdue invoice, you can follow the steps below log in to your nue app https //app nue io and navigate to revenue manager → invoices if an invoice is overdue, you can see a late fee icon next to it click on the late fee icon to create a debit memo in the create debit memo popup, fill up the following information amount enter the total amount for the debit memo tax specify the tax amount associated with the debit memo, if applicable description enter a detailed description of the debit memo, including the reason for issuing it (e g , “late fee for invoice #inv 000011”) other optional fields may be available depending on your system configuration click save and close \# transfer debit memos to payment systems after a debit memo is created, it will be automatically transferred as an invoice item to your connected payment system (e g collect payments via stripe invoicing docid nbzb70twgpswffpy5hz ) in real time this ensures that the debit memo is accurately reflected in the invoice and can be processed for payment the original overdue invoice will be voided in the connected payment system a new invoice will be created containing the original invoice items, as well as a new "late fee" invoice item the description of the debit memo will be used to identify the additional invoice item in the new invoice the folloiwng image shows the new invoice in stripe \# pay invoices with debit memo (late fees) when an invoice with a debit memo item is paid in stripe, the payment information will be transferred back to nue two payment application records will be generated—one for the invoice amount and another for the debit memo amount this allows for accurate tracking and reconciliation of payments associated with both the invoice and the debit memo \# refund invoices with debit memos (late fees) in the event of a partial refund for an invoice that contains a debit memo item, the refund process handles the refund amounts for the invoice and the debit memo separately if the total refund amount is equal to or greater than the original invoice amount, the invoice is considered fully refunded in nue for example, the invoice amount is $99, debit memo is $10 and the total refund amount is $100, the invoice will be marked as fully refunded in nue the debit memo will be considered as partially refunded nue will first process the original invoice first before processing debit memos when refunds happen, 2 credit memo records will be created containing the refunded amounts, one for the original invoice, and one for its associated debit memo if credit memos docid 4kdt24lq8ag py6vdkpgu feature is not enabled in nue, a negative invoice will be created instead