Finance charges are not retroactive.

Only invoices created after the feature is enabled are eligible. Invoices that existed before activation will never incur a finance charge, even if they remain unpaid.

Finance charges apply per invoice, not on a monthly billing cycle.

Each unpaid invoice is evaluated individually based on your configured grace period and the invoice date. There is no fixed monthly billing date — a charge generates whenever a specific invoice crosses your grace period threshold, which may be at any point in the month.

Each finance charge generates as its own separate invoice.

Finance charges do not appear as line items on the original invoice. When Shepherd applies a finance charge, it creates a new invoice that references the original. To view, edit, or collect payment on a finance charge, open it from the Finance Charges sub-tab under Invoices.

The "Accrue interest/fees on finance charge invoices" setting only affects finance charge invoices created after it is enabled.

Turning this setting on will not apply compound fees to any existing finance charge invoices.
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Default Fee — Choose how finance charges are calculated: a flat fee or a percentage of the invoice total.

Minimum Balance — Set the minimum outstanding balance required before a charge is applied. Use this to prevent small balances from incurring fees.

Grace Period — Set the number of days after the invoice date before a finance charge can apply. The grace period is measured from the invoice date, not from the date the feature was enabled. For example, with a 30-day grace period, an invoice created today would first become eligible for a finance charge in 30 days. If you later change the grace period, previously generated charges are not affected — new charges will follow the updated setting going forward.

Client Type Exceptions — Select client types to exclude from finance charges. If an exempt client receives a charge, confirm their Client Type is assigned correctly on their profile — clients with no Client Type selected will not be covered by the exemption. Learn more about Client Types here.

Invoice Status to Incur Fees — Define which invoice statuses can trigger finance charges. By default, only Checked Out invoices are eligible. If no status is selected, finance charges will apply to all invoices regardless of status.

Accrue interest/fees on finance charge invoices — When enabled, Shepherd can apply a new finance charge to a prior finance charge invoice if that invoice remains unpaid past the grace period again. This only applies to finance charge invoices created after this setting is enabled.

Invoices — A Finance Charges sub-tab appears within the Invoices page. Each finance charge has its own invoice number and displays the related original invoice number. Payments are collected as normal. Note that the status filter on this tab applies to the finance charge invoices themselves, not the original source invoice — filtering by a status not held by your finance charge invoices will return no results even if the original invoices carry that status.

Client Statements — Statements include a Finance Charge column within aging balances, displaying total finance charge amounts alongside 30, 60, 90, and 120-day balances.

Invoice Summary Report — Finance charge invoices are included automatically.

Invoice Line Items Report — Finance charges appear as a product type and category labeled Finance Charge. Toggle on Include Finance Charge and search for Finance Charge Fee under the Description, Product Type, or Product Category columns to isolate them.

Client Report — A Finance Charges column displays totals per client.

End of Day Report — Finance charges are included as standard invoices.

Accounts Receivable Report — Finance charges are included as part of outstanding balances.

The feature is enabled in Admin > Clinic Settings > Financial Settings > Finance Charges

The invoice was created after finance charges were activated

The invoice balance meets your Minimum Balance threshold

The invoice has passed your configured Grace Period

The invoice status is included in your Invoice Status to Incur Fees setting

The client's Client Type is not listed in Client Type Exceptions