Administrative Fees or interests?

Interest is only allowed by financial institutions.


From the main menu, go to Inventory Management > Sales and Expense categories management,

  • If you already have a category where the type is: "ADMINISTRATIVES FEES" move to the next section, otherwise, follow the next steps:
  • Click the to create a new category,
    • Enter a Category number (e.g.: 007),
    • Select the Category Type : ADMINISTRATIVE FEES,
    • Enter a description (e.g.: ADMINISTRATIVE FEES),
    • Check the option Exclude the sales report,
    • Make sure the assign the right GL account to the "Sales GL" field,
  • Click the disk to save.

From the main menu, go to Inventory Management > Product/Job code management,

  • If you already have a product in the ADMINISTRATIVE FEES category, move to the next section, otherwise follow the next steps:
  • Click the to add a new product,
    • Enter the Administrative fees Category number or click to the to look for it,
    • Enter a Product code (e.g.: ADM),
    • Enter a Description, (e.g.: ADMINISTRATIVE FEES),
    • Check the option Taxes included,
  • Click the disk to save.

Once the product is created, GEM-CAR will automatically use it to generate the administratives fees when you plan to do it.

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  (default: )
      • : fees are recorded in the customer's account recevables,
      • : fees are only printed on the account statement,
  • Click the disk to save.

 

IMPORTANT


GENERATE INVOICES (RECORDED)
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.

NON RECORDED
When not recorded, 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.

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"


Improvement added to version 9.2

The mention "ADMINISTRATIVE FEES" will be displayed on the account statements, for the fees generated after updating to version 9.2.

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When a customer decides to pay his fees, create an invoice through the Point of Sale:

  • Create an estimate,
  • Add the an administrative fees product (created previously) with taxes included (fees are taxable but not interests),
  • Close the invoice to the customer's receivables,

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  • Open the customer's receivables,
  • Select the fees and the original to record the payment.