How to set up late fee rules flat, percentage, slab or hybrid

1. Open Late Fee Rules under Configuration

Open Inkwelly → Student Fee from the left sidebar, then click Configuration under SETUP. The Fee Configuration page lists four sections: Fee Structure, Discounts, Penalties & Refunds, and Preferences. Inside Penalties & Refunds, click Open on the Late Fee Rules tile. This page is the single place where every penalty rule for the school lives.

2. Click + Add Rule and name the rule

Click the + Add Rule button on the top right of the list. In the dialog, enter a clear name such as Standard late fee — Annual 2025-26 so anyone reading an invoice can recognise it. The name appears on every invoice that carries a late fee and on the fee receipt, so keep it readable for parents — avoid codes or short forms.

3. Pick the calculation type that matches your policy

Inkwelly shows four tiles: Flat Rate (fixed amount per period), Percentage (a percentage of the outstanding amount), Slab Based (configure slabs after save), and Hybrid (flat then percentage after N days). Pick Flat Rate when your circular says ₹100 per day after due date. Pick Percentage when it says 5% of outstanding after due date. Pick Slab Based when the penalty rises with delay — for example ₹50/day in week 1, ₹100/day in week 2, ₹200/day after that. Pick Hybrid when the rule is ₹100 flat, then 2% of outstanding after 7 days.

4. Enter the rate fields for the chosen type

For Flat Rate, enter the Flat Amount in rupees and pick the Period — Per Day, Per Week or Per Month. ₹50 to ₹100 Per Day is the typical Tier-2 day-school setting. For Percentage, enter the Percentage Rate between 0 and 100 — 2 to 5 is common. For Hybrid, enter the Initial Flat Amount, the Percentage Rate, and the After Days threshold at which Inkwelly switches from flat to percentage — for example flat ₹100 for the first 7 days, then 2% of outstanding. Slab Based has no rate field here — slabs are configured after saving.

5. Set grace days and the maximum cap

Enter Grace Period (Days) — the number of days Inkwelly waits after the due date before charging any late fee. 0 means the late fee starts the day after the due date; 7 is the most common Indian school setting. Then set an optional Max Late Fee in rupees and Max Late Fee in percent of the invoice — leaving both blank means no cap. The cap is the parent-fairness lever; most schools keep the late fee from exceeding 25% of the original invoice.

6. Mark Default and Active, then Create

Toggle Default on if this rule should apply to every invoice that does not already carry a specific late fee rule — the office usually keeps exactly one default per session. Leave Active on so Inkwelly can apply the rule today; toggle it off to keep the rule available without charging. Click Create. Inkwelly saves the rule and shows it on the list with a calculation pill, the rate detail (for example ₹100 per day), grace days, max fee, and a Status pill.

7. For Slab Based rules, add day-range slabs

If you picked Slab Based, click the saved rule on the list to open the slab editor. Click Add Slab, enter From Day and To Day (leave To Day empty for onwards), then enter either an Amount in rupees or a Percentage — not both. Add a description such as Week 1 — gentle nudge. Repeat for each tier — for example Day 1 to 7 at ₹50, Day 8 to 14 at ₹100, Day 15 onwards at ₹200. The slabs together describe how the penalty rises with delay.