How to Fill Out a Statement With Late Fees

Businesses providing goods or services often sell to their customers on account. This means their customers receive a product or service now and pay for it at a later date. The terms of credit sales vary by businesses and customers. Credit lines also vary based on businesses and creditworthiness.



When a sale is made, the company sends an invoice to the buyer stating the amount due and the due date. If a customer does not pay, the business will send a reminder statement.

Instructions

1

Determine which customers have outstanding invoices with the company. When all customers with outstanding invoices are found, statements can be generated and late fees added. Businesses have different terms when it comes to charging late fees on accounts. Terms are usually disclosed on the original invoice a business issues.

A statement does not show details of the sale, but rather a summary of the sale and the amount due. Statements typically are generated at the end of each month and are sent as a reminder of an outstanding debt.

2

Fill in the customer's name and address, as well as the date, at the top of the statement. All monthly activity should be included on the statement so that the customer can see a summary of all transactions that occurred during the month.

Because statements are generated at the end of each month, all transactions from the first of the month are included. This includes all sales made by the company to the customer and all payments the company received. The customer's balance is recorded at the bottom of the statement.

3

Calculate late fees. Late fees are calculated based on the terms agreed upon between buyer and seller. Typically fees are calculated as a percentage of the outstanding balance. The late fees are then written below the customer's balance and a total is recalculated. The statement is then sent to the customer.