Summary

Fees contain the detail for each line item that is entered on an invoice. Follow this process to create a fee.

Step by Step 

1     Open the Fee Selection window.

• The Fee Selection window (AR> Maintenance> Fees) displays a list of all the fees created in the application.
  • The fee data grid can be customized to display specific columns or to group the displayed fees.
• Highlight a fee and click DELETE to delete the selected fee.
• Highlight a fee and click EDIT to edit an existing fee.
• Click CREATE FEE to open the Fee Maintenance window and create a new fee.

2     Open or create a fee.

• The Fee Maintenance window allows you to create new fees or modify existing fees.
• In the fee Code field, give this new fee a code. It can be from one to eight alphanumeric characters long.
• Enter a description in the Description field. This field will hold up to 60 alphanumeric characters.
• Select a Fee Type from the drop-down menu. The fee type selected will determine which of the remaining fields will be active.
• If the fee is units based, click the Fee Unit Type field search button to select a fee unit type from a list. This field will only be active if Standard is selected in the Fee Type field.
• If the fee you are creating is usually the same dollar amount, enter that amount in the Fixed Amount field. If the amount varies, leave this field at 0.00.
• Enter the priority for this fee in the Payment Priority field or click the field search button   to choose one from a list. Priorities can range from 00 to 99.
  • In the case of a partial payment in which there is not enough money to pay a certain level of priority, the system will allocate the payment across all the fees with the same priority level.
• By default the Active toggle will be checked. If you do not want users to have access to this fee, uncheck this toggle. This is usually done when a fee is no longer in use.
• Check the Accumulate rates for each tier toggle to accumulate rate amounts that fall across individual rate tiers.
  • For example, you might set up a late payment penalty fee tier system that looks like this:
    • 0 - 15 days late = $1 per day
    • 15 - 30 days late = $2 per day
    • 30 - 45 days late = $3 per day
  • If the Accumulate rates for each tier toggle is not checked, a penalty fee for a bill that is 40 days overdue would be $120 as it falls into the 30 - 45 days late tier (40 days x $3 per day).
  • If the Accumulate rates for each tier toggle is checked, a penalty fee for a bill that is 40 days overdue would be $75 as it is spread over all three tiers (15 days x $1 per day + 15 days x $2 per day + 10 days x $3 per day).

3     Add General Ledger accounts to the fee.

• Each fee requires three GL Accounts:
  • Accounts Receivable
  • Revenue
  • Cash
• When charges are generated, the system will debit the AR account and credit the Revenue account.

• When payment is received, the system will debit the Cash account and credit the AR account.

• The system will not validate what type of account was entered, so you can enter any account for the AR, Revenue and Cash accounts.
  • A common practice is to enter a liability account (usually either deposits or unearned revenue) for the Revenue account. That way the liability account gets credited when invoices are generated.
• To add a GL account to a fee, click the account field search button. This will open the Chart of Accounts Selection window.
  • The Fiscal Year will default to the active year. If you want a fee code that can be used in a prior fiscal year, change the year to the prior year.
  • Enter the desired account information in the Search Criteria section to search for an account.
    • You can override GL accounts when entering invoices.
  • Click the Select button when complete. This will return you to the Fee Maintenance window.

4     Attach a Late Fee to the fee.

• After adding the GL accounts for this fee, you can attach a Late Fee to this fee. Late fees are not required. If you want to use the Daily Interest feature in Recurring Invoices, you will need to add an interest penalty fee to the regular fee in order for the system to know how much daily interest to charge. To add one, click on the Late Fee field search button.
  • If this list is empty, you need to create designated penalty fees.

5     Attach a Collections Fee to the fee.

• If you use the collections process in AR, you will need to set up the collection accounts for this fee. Click the Collections Fee field search button.
• The Fee Selection window will display all of the available collection fees. If no fees are displayed, you will need to set up a separate fee for the collections process.
• Select a fee and click the Select button and the GL Account will appear in the accounts field.
• When an invoice is sent to collections, there are two transactions.
  • The original invoice is adjusted to zero.
  • A new AR customer account is created with a balance equal to the original invoice.

6     Attach Project Management information to the fee.

• The PM Interface toggle must be checked on the AR Setup window (AR> Utilities> Setup) in order to attach PM information to the fee.
• The Task Label field is used to attach a PM Task Code to the fee. Task codes are used to track the transaction history associated with specific PM jobs.
• The PM Type Code field is used to attach a PM Type Code to the fee. Type codes are used to categorize the type of work performed on a PM module task. Some examples of type codes include materials, labor, equipment and services.
  • This field is required if a Task Label has been attached to the fee.

7     Attach Tax Fees to the fee.

• The Tax Fees section allows you to attach previously created tax fees to a new taxable fee code. Tax fees can only be attached to Standard and Penalty Fee Types.
• Click ADD TAX FEE to add a tax fee to the new fee.
  • This will open a Fee Selection screen that displays all the active Tax fees created in the application.
• Select a tax fee and click the Select button to attach the tax fee to the new fee.

8     Attach Rates to the fee.

• The Rates section of the Fee Maintenance window is used in conjunction with the fee units specified on the fee. The rates section tells the system how much to charge for each unit specified on the license. This section will not be enabled when creating a Deposit fee.
• Click CREATE RATE to create a new rate line item.
• Enter the range values in the Greater Than and Through fields.
  • These values will designate the lower and upper limits of each penalty fee tier.
  • For example, a three-tier late fee might include ranges of 0 - 15 days, 15 - 30 days and 30 - 45 days. In this case, you would need to create a new rate line item for each of these ranges. The high limit a lower tier should match the low limit of the next tier.
• Check the Or Over toggle if you want the range to apply to unit values that are greater than the upper range entered in the Through field.
• Enter a Rate for the fee.
  • The Rate applies to both Percentage and Per Unit fees.
  • To create a Percentage fee, check the Percentage toggle and enter the percentage to be charged by the fee in the Rate field.
    • On Penalty fees, the percentage in the Rate field will be multiplied by the past due amount.
  • To create a Per Unit fee, check the Per Unit toggle and enter the per unit charge in the Rate field.
    • This is generally the amount you would like to charge for every unit in the range. The value in the Every field will determine how often the amount in the Rate field is charged. For example, if you want to charge $1 per day for every day a fee is overdue, you would enter a 1 in the Every field. If you are using a tier system, the rate might be $1 per day for 0 - 15 days overdue, $2 per day for 15 - 30 days overdue and $3 per day for 30 - 45 days overdue.
• Click the Save button when complete.