Late charge compounding is controlled through billing format codes. Perform the following steps for each billing format code for which you want to include the option to compound late charges. Once a billing format code is set for late charge compounding, late charges on invoices for matters that use that billing format code will be automatically compounded.
NOTE: This option is not normally enabled. Check the law with your local jurisdiction to make sure this is permitted.
Select File > Setup > Billing Format Codes.
The Billing Format Codes Browse window appears. Highlight the billing format code and click Edit.
The Billing Format Code Maintenance window appears. Select the Reporting Options tab. Then, check the new field Compound Late Charge Interest to turn on late charge compounding for the selected billing format code.
A warning message appears. Click OK to close the window.
Click Done to save your changes.