You have two penalty types to choose from,

New: Latechaser creates a new invoice, for the penalty/policy/late fee.

Note: You will need to determine if this should automatically be approved or sent to a draft in your accounting system.

Existing: Latechaser adds the penalty/policy/late fee onto the existing invoice it was issued on.

Note: This will automatically be approved, as Latechaser is just updating the existing invoice.