Late fee for customer

Hi Experts,

Can any one help on late fees. We would like to charge a late fee to some of our customers. How can I set up the late fee schedule and how does SAP work. I also Need to know if SAP can automatically calculate the late fee for each invoice or it does the full balance of the customer. I am running SAP Business One 8.82 PL: 05.

Thank you for your time.