Late Fees being added to current accounts

I have a number of units for which late fees are being added to the ledger regardless of the date of payment. Even if I put in a rent payment on the first of the month, the system adds a late fee on the 6th (I have a 5 day grace period). Also, if I do not record the payment on the first but date it for the first (or any day prior to the 5th) the late fee should be removed but is not.

Anyone have any input on this? Am I missing something?