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, Amount and Per Unit Charges

Understanding Charge Types


When adding additional costs to an invoice, you can choose from three primary calculation methods: Percentage, Fixed Flat Fee, or Per Quantity.

1. Percentage Charges


Calculated as a portion of the total invoice value.
Best for: Taxes, service fees, or insurance.
Example: A 10% service fee on a $500 invoice adds $50.

2. Fixed Amount Charges


A set price that stays the same regardless of the invoice total or item count.
Best for: Flat-rate delivery, processing fees, or administrative fees.
Example: A flat $50 "Standard Shipping" fee applied to the whole order.

3. Per Quantity Charges


Calculated by multiplying a set rate by the number of units/items on the invoice line.
Best for: Installation fees per item, disposal fees, or per-unit packaging costs.
Example: A $5 "Eco-Tax" applied to 10 separate items results in a $50 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.