How To Post Client Fees And Charges

You may charge fees to your client without affecting the debtor. The method you use to post fees and charges to a client depends on whether or not you want a paper trail and how you want this set up.

Method 1 - Transaction

You can create a specific Transaction Type for these charges. Please see How To Setup Transaction Types for details. Your transaction type can be set up as a Fee, with Omit from daily cash report, Don't calculate commission, and Don't calculate tax all switched ON.

When you want to charge a fee to the client using this method, open the Debtor form for the debtor involved and post this transaction. However, we do not put anything in the fields labeled To Us or Direct, but we put the amount into the field labeled Commission Amount. A letter/statement can be used to reflect this Transaction Type to bill the client. When the Client pays, you post the same transaction with a negative commission amount. The description can always be changed to reflect the purpose of the transaction.

1. Open the debtor the charge relates to.

2. Select the TRANSACTIONS tab.

3. Post a new transaction with the following settings:

- Account: FEE is dotted
- Omit from daily cash report is checked
- Don't calculate commission is checked
- Don't calculate tax is checked


4. Make sure the 'Omit from Client Statement' switch is OFF.

5. Enter the amount of the fee in the Commission Amount field.

You can create a Transaction Type that shows only the Commission field to make it easier for the user to know where to put the amount.

Posting an amount, either a charge or a credit, as a Commission, is a way of handling financial transactions with a Client, without affecting the debtor's balance.

Example:

You might charge a fee to a client for court costs. Later on, you may win a settlement, get an amount from the debtor and need to reimburse the client.

You would post two transactions that have no To Us or Direct amounts, just a Commission amount. One transaction would be a positive amount, when the client is charged. The other would be a negative amount, when the client is reimbursed.

Method 2 - Client Payment

You can also apply fees or charges to a client using the Payment section of the Client. You would post a negative amount for the amount of the fee. Then post a payment with a positive amount when the Client pays. The Description may be used to detail the reason for the charge and the debtor the fee relates to. This can also be used in a statement or letter to the Client.

To Test That The Fee Appears On Statements

1. Choose the Month End menu and Generate Statements.

2. Browse the statements generated, looking for the client to whom the fee was charged.

3. Open the statement and then open the Line Items to see whether the charge you posted appears correctly.

See Also

- Financial Detail