Enable procedure step costs

If the customer wants to charge its debtors for reaching particular Procedure steps, Billtrust Collections can add additional costs to Procedure steps as a penalty or to recoup costs.

Instructions

  1. Select Settings > Admin configuration.

  2. Select Permissions.

  3. Select PROCEDURE_STEP_COSTS.

  4. Select Save.

How to use interests and costs

After completing the interest and cost fields in the company details, you can select the procedural step in which these additional costs are passed to the debtor. Use replaceable tags to insert interests and/or costs in reminder templates, and to show the total amount due.

About negligence interests and costs

In the Main Settings under Company details it is possible to configure negligence interests and damage costs per entity.

How interest is calculated

The interest is calculated on annual basis (365 days) and per overdue debit invoice.

Example:

  • A client has two outstanding invoices: one of $500 and 450 days due; a second invoice of $1000 and 100 days due.
  • The negligence interests in the company details is installed at 10%
  • The calculation is as follows: ((450/365) * 10% * 500) + ((100/365) * 10% * 1000) = $89.04

How costs are calculated (penalty clause)

1. Damages per debtor (standard per document): checkbox is not used

  • The percentage is calculated per outstanding debit invoice.
  • If the outcome is lower than the filled in 'Minimum cost of damages', the minimum cost will be charged.

Example:

  • A client has one overdue invoice of $250 and a second of $1000
  • The penalty clause is 10% and there is a minimum cost of damages of $50.
  • The calculation is as follows: (250 * 10%) + (1000 * 10%) = $50 (normally it would be $25 but $50 is set as the minimal cost) + $100 = $150 total cost

2. Damages per debtor (standard per document): checkbox is used

  • The percentage is calculated on the total outstanding amount of the debtor

Example:

  • A client has one overdue invoice of $250 and a second of $1000.
  • The penalty clause is 10% and there is a minimum cost of damages of $50.
  • The calculation is as follows: (1250 * 10%) = $125
Note: It is recommended to check the damages per debtor if you choose for a significant minimal cost (e.g., $50), to avoid that the total cost becomes too high when there are multiple outstanding documents with lower amounts.

Procedure step costs

Instead of using the general costs as defined in the company details, it is also possible to install a cost per procedure step in the Procedures settings. This amount will be calculated in the 'costs' tag on the reminder when the leading document is in this specific procedure step.

Note: Contact our support team when the Costs of step field is not visible in the procedure settings.