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.