• From: Canada, Yukon
  • Registered: 09/27/2014
  • Posts: 121

Topic: fixed surcharge per item or per item category

Hi,

our area has recently implemented legislation for recycling fees.  The fees are fixed values based on the category of item.

I thought to set it up as a tax, but taxes only seem to have percentage options, no fixed fees.  Ultimately, this would probably be the best way, as it would keep track of all the money collected in a separate GL account.  And even better would be to be able to assign the surcharge to an item category, instead of having to assign it to each item individually.

So I looked through everything I could think of for any kind of "additional fee" field, but I can find nothing like it.

The only way I can think to approach this is to add a separate line item on each invoice, but this is error prone and difficult to reconcile against what was actually sold. 

Wondering if anyone has tackled this before and if so how, and how did it work out for you?

bobloblian's Website

2 Reply by poncho1234 (edited by poncho1234 10/15/2018 07:45:45 pm)

  • From: Colombia
  • Registered: 12/29/2014
  • Posts: 629

Re: fixed surcharge per item or per item category

1st thought would be 'sales kits'... but that would depend on how many items you have
It seems adding an additional item is the only way using FA, there's a number of posts in this forum with a similar request.

The FrontAccounting Wiki(Manual, examples, tips, setup info, links to accounting sites, etc) https://frontaccounting.com/fawiki/
  • From: Canada, Yukon
  • Registered: 09/27/2014
  • Posts: 121

Re: fixed surcharge per item or per item category

Hi Poncho,

Thanks for the suggestion, I hadn't considered sales kits.  looks like it would work; I have a few thousand items, so if I have to do each item it is going to take a long time no matter what.  Hence the hope for something that can be attached to categories. 

I will consider the data entry load vs the probability of mistakes on separate invoice items and proceed from there...

bobloblian's Website

4 Reply by poncho1234 (edited by poncho1234 10/16/2018 05:47:43 am)

  • From: Colombia
  • Registered: 12/29/2014
  • Posts: 629

Re: fixed surcharge per item or per item category

Thats all I can think of, well that and modify the tax system to accept a fixed charge.

How many of these fixed costs do you have?

Thinking out loud... create a service item 'fixed charge +adjustment' sell it for $10.00 give this item a tax that equals the fixed charge so if your fixed charge is $2.00 apply a 20% tax to it, name this new 20% tax to what the fixed charge is for, then add an another service item 'fixed charge -adjustment' sell for -$10:00 and 0% tax, you'll have to allow negative sale prices in Bankin&GL setup. Its a variation on discounts in tips & tricks. You will have to setup a few 'taxes' and items though. Try it on a training installation first. Maybe it will be less work than setting up and managing a few thousand sales kits

Maybe @apmuthu has a different idea?

The FrontAccounting Wiki(Manual, examples, tips, setup info, links to accounting sites, etc) https://frontaccounting.com/fawiki/
  • From: Canada, Yukon
  • Registered: 09/27/2014
  • Posts: 121

Re: fixed surcharge per item or per item category

hm, this is an interesting idea.  Certainly seems it would save a bunch of work.  I see the idea, basically another line item on the invoice, but one that would apply tax to a GL account, so easier to track.  Brilliant idea, thank you...

bobloblian's Website

6 Reply by poncho1234 (edited by poncho1234 10/16/2018 05:50:13 am)

  • From: Colombia
  • Registered: 12/29/2014
  • Posts: 629

Re: fixed surcharge per item or per item category

My apologies....the 2nd item should be sold for the same amount but negative, in my example above it would be -$10.00, thus cancelling the 1st $10.00, but leaving the 20% tax. You'll have to allow negative amounts in Banking & GK setup.

Oh an both the extra items need to be a service item

Yes assign each 'tax' its own GL account will help tracking and error finding

If it works add it to the wiki please

Post 4 has been edited to read correctly now

The FrontAccounting Wiki(Manual, examples, tips, setup info, links to accounting sites, etc) https://frontaccounting.com/fawiki/
  • From: Canada, Yukon
  • Registered: 09/27/2014
  • Posts: 121

Re: fixed surcharge per item or per item category

I was mulling this over last night in my dreams, and it occurred to me I could maybe just bury the surcharge in the price of the item and modify the description to say that the surcharge is included.  At the end of the month I can run an inventory report and create a vendor invoice based on that instead of using a GL account, and expense the cost that way.  This would avoid any confusion on the invoice, would probably avoid more mistakes in the long run in terms of forgetting to add the additional line item on the invoice, and I can update the individual items as I bill them instead of having to do them all at once, based on whether the description has already been modified or not. 

Only downside I see is that tax would be charged on the surcharge, but it would be a matter of a few cents at most, so not really significant...

then, when/if a fixed charge can ever be coded into the item categories, the process can be reversed in the same way of modifying descriptions and prices on items as required till over time they are all done...

bobloblian's Website

  • From: Colombia
  • Registered: 12/29/2014
  • Posts: 629

Re: fixed surcharge per item or per item category

Those few cents will add up

The FrontAccounting Wiki(Manual, examples, tips, setup info, links to accounting sites, etc) https://frontaccounting.com/fawiki/