Features · Collections
Penalty interest that accrues itself, daily
When a customer goes overdue, most companies either forget the penalty or guess it. Flows does neither: each contract carries its own penalty rules, the system accrues interest day by day, and every baht of it is visible, historical, and negotiable on record.
01
Rules set once, on the contract
Configure the penalty terms when the contract is created — the rate, what it applies to, and when it starts. Different customers can have different rules, because the rules live on each contract, not in a global setting.
- Per-contract rate & rules
- Applies from the overdue date
- No penalty? Just leave it off
- Terms visible to the whole team
Contract SC-2026-041 · Bangkok Trading
@Somchai please follow up period 3
Logged on the contract · visible to the team
02
Accrued daily, with the history to prove it
From the day a period goes overdue, the system adds the day's interest — no month-end catch-up, no spreadsheet formula. View 1 shows every contract's live penalty balance; view 2 shows how each period's amount built up over time.
- Daily automatic accrual
- Live balance per contract
- Per-period history view
- Numbers ready for a demand letter
Collection record — TCH Motors
Penalty accrued
฿69,820
Daily at 15% p.a. · 43 days overdue
03
Collected, or waived — always on record
When the customer pays the penalty, register it and the balance offsets automatically — cheques work too. When you negotiate a reduction, record the waiver with its reason; the audit trail keeps everyone honest.
- Penalty payments registered
- Payable by cheque
- Waivers with reasons
- Full audit trail
Cheques — received & issued
Bound to contract SC-041 · periods 3–5
Write-off happens automatically on clearing
Inside the module
Real screens from Flows ERP — what your team will actually work in.
Live penalty balances
Every overdue contract with its current accrued penalty — sorted by size, ready for the morning collections run.
Per-period accrual history
How the penalty built up day by day for one period — the number a customer can be shown, not argued with.
Why Flows
What makes Flows different
Not another generic ERP — a system built around how Thai SMEs actually buy, sell, and collect.
See how onboarding works →Priced per company, not per seat
One annual price, every module included. Add users freely within your tier — no feature gates, no seat fees.
Three languages with auto-translation
Thai, English & Chinese UI — and the data your team enters is translated automatically, so everyone reads the same records.
Your documents, exactly your format
Send us your invoice and receipt templates; our team configures them into Flows. Every document comes out looking like yours.
We walk you live — and stay
Five-step onboarding at no extra cost, then quarterly system stability reports. We don't disappear after go-live.
Spec sheet
What the penalty-interest module ships with — included in every plan.
Configuration
Per contract: rate, basis, and start condition
Accrual
Automatic, daily, from the overdue date
Views
Live balance per contract · per-period history
Payments
Registered against the balance; cheque payment supported
Waivers
Negotiated reductions recorded with reasons
Collections link
Balances feed demand letters & the timeline
Audit
Every adjustment logged — who, what, when
Export
Balances and history exportable to Excel
Frequently asked questions
What is penalty (default) interest?
Interest a debtor owes for paying after the due date, on top of the original debt — compensation for the delay. In Flows it's computed from the rules written on each contract, so the amount is a system figure, not a negotiation opener.
How does Flows calculate penalty interest?
By the contract's own configuration: the rate, the basis it applies to, and the start condition. From the overdue date the system accrues the amount daily, and both the live balance and the day-by-day history are visible.
What penalty rate should we set?
That's a commercial and legal decision — Thai law constrains what's enforceable, and many companies have their lawyer confirm the clause. Whatever rate your contract lawfully states, Flows applies exactly that rate, per contract.
Can we waive part of the penalty when we negotiate?
Yes — record the waiver with its amount and reason, and the balance adjusts with a full audit trail. The original accrual history stays intact, so you can always see what was owed before the concession.
Can a customer pay penalty interest by cheque?
Yes. Cheques can bind to penalty amounts as well as installments; when the cheque clears, the penalty balance offsets automatically.
Does the penalty amount appear in demand letters?
Yes — a demand letter generated in Flows can state the accrued penalty as of the letter date, computed by the system. See the demand-letters feature for the rest of that workflow.
What if we don't charge penalties at all?
Then don't configure them — contracts without penalty rules simply never accrue anything. Many businesses enable it only for chronic late payers.
Stop estimating what late payment costs you.
Start a free one-month trial, or book a demo and see penalty interest accrue on a real overdue case.