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

Users of the invoice app have the option to specify charges to be applied as either 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.