From the main menu, go to Configuration > General information,

• Click the "General Information" tab,
• Go to the "Administrative fees" section,
  • Enter Nbr of days allowed before applying the fees, (default: 30 days),
  • Enter the Percentage value of the fees (default: 2),
  • Check/Uncheck Generate invoices option:
    • Check: fees are recorded in the customer's account receivables,
    • Uncheck: fees are only printed on the account statement,
• Click the disk to save.

IMPORTANT

GENERATE INVOICES

When checked  the Administrative fees are recorded on the customers receivables for the month. To reverse them, you have to manually remove the record in the customer's account through the "Invoice Entries" module.


When unchecked  the administrative fees only show on the account statement. A record is created in the customer's account but no invoice is generated. If the customer sends a payment for the fees, you have to generate an administrative fees invoice before you record the payment reception in GEM-CAR.

You can also set a specific configuration of the administrative fees by customer.

• Go to the "Customer management" window,
• Click on the "Accounting" tab,
  • Enter a value for "Days before admin. fees",
  • Enter a value for "Interest rate" *,
• Click the disk to save.

* IMPORTANT: Interest is only allowed by financial institutions. That's the reason why GEM-CAR calculates ADMINISTRATIVE FEES and not interest. 

If you choose a different rate than 2%, please, bear in mind to edit the Legal message of your invoice in General Information for that specific customer before printing client's copy.

From the main menu, go to Customer Management > Administrative fees generation,

• Enter a date to generate the fees,
• Click the yellow folder icon to display all the customers account where the fees will be applied,
• Check the accounts where the fees will be applied,
• Click the green check mark to generate the fees.

Once the process is completed, GEM-CAR will automatically show a summary report:
"List of administrative fees by customer"

The mention "ADMINISTRATIVE FEES" will be displayed on the account statements for the fees generated:

GEM-CAR uses the following formula to calculate and generate the Administrative Fees:


GEM-CAR is calculating the Administrative Fees according to the Number of Days of delay and not months.

The "Number of days" configured in GEM-CAR is the grace period after which fees will be calculated daily, for each day of delay after the grace period.

Please note that the date entered in the administrative fees generation module will not be considered: the system will always calculate the fees as of the last day of the month for which you are doing the calculation.





Also note that 30 days of delay means that the invoice closed on 31st of August 2021 will be late with 30 days in the end of October.

• Fees calculated as of 30th of September – 0$ The invoice is not yet late, so our ENGLISH CUSTOMER (from the previous example) is not in the list.

• Fees calculated as of 31st of October – 30 days in October

• Fees calculated as of 30th of November - 29 days of delay because the invoice is generated on the 30th 

• Fees calculated as of 31st of December – 30 days 

• Fees calculated as of 30th of September - 10 days in the current month. Therefore:

• Fees calculated as of 31st of October – 30 days in October

• Fees calculated as of 30th of November - 29 days
  

GEM-CAR recommends to use this option. The goal is to provoke a payment from your clients with dues fees.

We only calculate compounded delay if we don’t generate monthly invoices.  

When we calculate fees without generating invoices we take the number of days in each month after which the invoice was considered late.

Note: This amount disappears after the first print/sending of the account statement by e-mail to the customer and it will not be saved anywhere in the system.

Example 1 – Invoice 100$ / closed on 2021/08/31 / Admin fees 2% / grace period: 30 days.

• Fees calculated as of 30th of September – 0$

• Fees calculated as of 31st of October – 31 days in October

((100*.24)/365)*31=2.038356164

• Fees calculated as of 30th of November - 31 days delay in October + 30 days delay in November = 61 days

• Fees calculated as of 31st of December – 31 days delay in October + 30 days delay in November + 31 days delay in December = 92 days

((100*.24)/365)*92=6.0493150568




Example 2 – Invoice 100$ / closed on 2021/09/20 / Admin fees 2% / grace period: 10 days.

• Fees calculated as of 30th of September - 10 days delay in September

((100*.24)/365)*10=0.653424

• Fees calculated as of 31st of October - 10 days delay in September + 31 days delay in October = 41 days

• Fees calculated as of 30th of November - 10 days of delay in September + 31 in October + 30 in November = 71 days

((100*.24)/365)*71=4.668493

The goal is to provoke a payment from your clients with dues fees.

When a customer decides to pay his fees, create an invoice through the Point of Sale. Please note that an invoice has to be created only if the customer chooses the method  "Generate invoices" not active:

• Create an estimate,
• Add the Administrative Fees product (created previously) with taxes included (fees are taxable but not interests),
• Close the invoice to the customer's receivables
• Open the customer's receivables,
• Select the fees and the original to record the payment.

• Go to the Archive
• Find the invoice with the administrative fees
• Click on "Reverse invoice"
• Close the invoice as receivable, the payment date may be the date the charge was billed
• The administrative charges and the reversal should cancel each other out

• Open your customer in the Point of Sale
• At the PoS, click on the History button 
• Select the invoice from the list
• Click on "Reverse invoice"
• Close the invoice as receivable, the payment date may be the date the charge was billed
• The administrative charges and the reversal should cancel each other out