Setup Charges

Charges, discounts, and surcharges are financial adjustments applied to invoices or transactions that can either increase or decrease the total amount owed. Depending on the transaction terms, charges, discounts, and surcharges can all be applied to an invoice simultaneously.

- Discounts are reductions in the invoice amount offered to encourage prompt payment or as part of promotional offers.

- Surcharges are additional charges added to the invoice amount, often to cover specific costs or circumstances.

Percent or Amount Charges

Charges can be applied either as a percentage of the total invoice amount or as a fixed amount.

Percentage charges are calculated based on the total invoice amount, while fixed amount charges remain constant regardless of the invoice total.

For instance, a user might apply a 10% service fee on an invoice, or they might apply a flat $50 delivery charge.

Taxable or Non-Taxable Charges

Charges can be classified as taxable or non-taxable.

Taxable charges are those that are subject to applicable taxes, such as sales tax, value-added tax (VAT), or goods and services tax (GST), depending on the jurisdiction and the nature of the transaction.

Non-taxable charges, on the other hand, are not subject to taxes and are usually exempt from tax calculations.

Amount Limits

Amount limits apply only to percentage-based charges, ensuring the charge amount is within a specified range, regardless of the calculated percentage.

Minimum Amount Limit

- This sets a floor for the charge amount.
- If the calculated charge is below this minimum amount, the charge will be set to the minimum amount.
- For instance, if the minimum charge amount is $5 and the calculated charge is $3, the charge will be adjusted to $5.

Maximum Amount Limit

- This sets a ceiling for the charge amount.
- If the calculated charge exceeds this maximum amount, the charge will be capped at the maximum amount.
- For example, if the maximum charge amount is $10 and the calculated charge is $15, the charge will be capped at $10.