Use custom items to manually add extra fees or rebates to an invoice. You can even give a rebate on an invoice item after it's been billed. We'll explain how to create custom items, how to apply them, and what to expect in your reports and journal entries.
Check out our FAQ for more answers or let us know if you have another question at support@amilia.com. We'd love to hear from you!
How it Works
3.2 During replacement
5. FAQ
1. Create a Custom Item Type
Before starting, make sure you have permission(s) to create custom item types and the right ledger code(s) exist to assign to your custom item(s).
Create a custom item in the Discounts and fees>Custom items subtab:
The custom item's label appears on client invoices and in your reports.
Is the type an extra fee or a rebate?
Choose a ledger code to assign to it.
You'll still be able to change its ledger code while adding it to an invoice.
If a custom item has been used on an invoice, its record can't be removed anymore. You can only modify, deactivate or reactivate it.
2. Add Custom Items to an Invoice
Admins can add custom items to an invoice at checkout, when creating an invoice/credit in the client's billing, during replacements, in a rental contract, and at the point of sale (POS). You may also give a rebate on an item after the invoice has been created.
Let's look at how to apply extra fees and rebates at checkout, in the client's billing, and how to give a rebate on an existing invoice.
2.1 Add custom items at checkout
Admins can add many custom items to the order form at checkout. An extra fee (+) is a manual charge that uses its default ledger code, or you can use another one. When used at checkout, a rebate (-) is like a manual discount that assumes the ledger code of the item it's linked to and reduces that item's charge.
Enter the dollar amount. A rebate with taxes can't exceed the invoice's total.
Which type is it?
Extra fee: Keep its ledger code or use another. Eligible for RL-24 tax credits.
Rebate: If used at checkout, it takes the ledger code of the item it's linked to.
Set your tax options.
Text in the description box shows on the client's invoice.
After checkout, it’s easy to spot custom items on an invoice in the client’s billing.
On the left is an invoice with an extra fee. On the right is an invoice with a rebate (notice that the rebate uses the same ledger code as the item it’s linked to).
➕ Extra Fee ➖ Rebate
2.2 What if there are installments or subscriptions at checkout?
Clients must pay the extra fee(s) at checkout, regardless of installments or subscriptions. Remember that admins can’t 'Skip and pay later' if they're paying in installments at checkout.
A rebate reduces a subscription charge at checkout but isn't applied on any of the recurring invoices. In the case of installments, a rebate given at checkout is divided equally across future installments. Clients will pay the regular initial installment, while future installment amounts are equally reduced (see below).
2.3 Add custom items in Client Billing via Operations
In Client Billing, admins can create an invoice or create a credit using one custom item only and can pick the ledger code to assign. When adding a rebate via the Operations menu, you can’t link it to an invoice item.
Click Operations>Create invoice or Create credit.
Enter the dollar amount.
Select the extra fee (or rebate) to use and the ledger code.
Set your tax options.
Text in the description box shows on the client's invoice. Admin comments do not.
2.4 Give a rebate on an existing invoice item
Need to discount the price of an item after it’s been purchased? No problem. When you ‘Give a rebate’, SmartRec tells you if any discounts have already been applied to an invoice item. You’ll know exactly how much to refund and the rebate will also be linked to the invoice item in your finance reports.
Say a client buys a 40$ camp t-shirt. Later, they return and point out there's a tear in the fabric and it should cost less. You magnanimously give a 5$ rebate on the shirt.
Here's what to expect:
Expand the invoice and click Give a rebate.
Pick the invoice item you want to rebate.
The Rebate details shows if the item has already been rebated, and the max rebate amount that can still be applied.
Pick a rebate (from your list of custom items). We recommend using the rebate's default ledger code or the same ledger code as the item being rebated.
When you give a rebate, it creates a credit memo with details on which item.
If the client paid in full, a credit balance appears. You can refund it or use it towards another purchase. Make sure to adjust any upcoming payments if any!💸
3. Custom Items during Cancellation/Replacement
Extra fees are canceled and credited the same way as an activity registration. Extra fees can't be replaced.
A rebate can't be canceled unless you cancel and credit the item it's linked to. When it's replaced, the rebate isn't applied to the new invoice item.
More custom items can be added while replacing an activity or membership.
3.1 During cancellation
Below are two invoices, each with a $300 activity. One invoice has a $10 extra fee and the other invoice has a $10 rebate.
Expand the invoice to Cancel/Refund Items and pick the item(s) to cancel:
Extra fees can be canceled and credited.
Rebates can't be selected. Instead, you must cancel the item it's linked to, which credits that item's reduced price.
You can add an administrative fee/penalty (with any ledger code).
After you save, a Credit memo transaction appears for the canceled purchase.
👉 Edit or cancel upcoming payments if the cancellation was linked to installments.
➕ Extra Fee ➖ Rebate
3.2 During replacement
Expand the invoice, click Replacement and pick which item(s) to replace.
An extra fee can't be selected for replacement. The charge remains on the original invoice unless the extra fee is canceled.
A rebate can't be selected for replacement. If you replace an invoice item linked to a rebate, the rebate itself isn't reapplied to the new replacement item. Naturally, a balance will remain.
In the screenshot below, a $300 activity linked to a $10 rebate ($290) is replaced with another $300 activity. However, the rebate doesn't apply and a $10 balance remains. Then, the admin added a new rebate of only $5, bringing the balance to $5 (talk about appreciation 😉).
If you add more custom items during the replacement, it shows as a manual adjustment in the Replacement details and appears on the new invoice.
After you save, a Credit memo transaction appears for the canceled purchase.
👉 If the original invoice item was linked to installments, edit or cancel the upcoming payment(s) if a balance or credit remains after the replacement.
4. Custom Items in Reports
An extra fee uses the ledger code it was given when invoiced and is recorded under the Sales column(s) in your reports.
Depending on the application method (at checkout, from the Operations menu, or via an existing invoice) rebates take on the ledger code of the item they are linked to or can use another ledger code. Manual rebates are recorded as credits under the Sales column(s) in your reports.
📄 Click here to see which reports are relevant to custom items.
4.1 Extra fees in journal entries
Revenue from extra fees is recognized immediately. A debit is created in the Default - Accounts receivable asset account (more value) and then a credit is created in the revenue account that was assigned to the extra fee when it was invoiced (more revenue).
➕ When an extra fee is alone on an invoice
An admin creates an invoice in the client's billing for $10.
$10 is owed to you. This creates a debit in the Default - Accounts receivable account.
$0.43 & $0.87 is owed to the Canadian and Quebec government (in our case). This creates a credit in a tax liability account.
$8.70 is recognized. This creates a credit in the revenue ledger account given to the extra fee when it was invoiced.
➕ When an extra fee is accompanied by other invoice items
In the store, an admin buys a $100 recurring activity and adds a $10 extra fee.
$110 is owed to you. This creates a debit in the Default - Accounts receivable account.
$4.78 & $9.55 are owed to the Canadian and Quebec government (in our case). This creates a credit in a tax liability account.
$9.96 is recognized (for classes that already occurred at the time of purchase). This creates a credit in the activity's revenue account .
$77.01 is deferred revenue (the value of classes that haven't yet occurred).
$8.70 is recognized. This creates a credit in the revenue ledger account given to the extra fee when it was invoiced.
4.2 Rebates in journal entries
Rebates are negative revenue. They're tracked in a contra revenue account that has a debit balance instead of the usual credit balance. This means they reduce net income (which is the opposite of a normal revenue account).
In which ledger account the rebate is recognized depends on whether it's alone on the invoice or linked to an item with multiple occurrences (such as a recurring activity).
➖ When a rebate is alone on an invoice
An admin creates a credit in the client's billing for $10.
$8.70 is the rebate value that reduces your income. This creates a debit in the revenue account assigned to the rebate when it was invoiced.
$0.43 and $0.87 are owed to the Canadian and Quebec government (in our case). This creates a debit in a tax liability account.
Until the rebate is reconciled with an invoice item, a credit of $10 is created in the Default - Account deposit account. Upon reconciliation, a credit will be created in the Default - Accounts receivable account.
➖ When a rebate is linked to another invoice item
The rebate and the activity's value are divided by the total number of activity occurrences with a proportional amount being recognized after each occurrence.
An admin buys a $300 recurring fitness activity and adds a $10 rebate.
$290 is owed to you. This creates a debit in the Default - Accounts receivable account.
$0.92 is the rebate value for classes that already occurred at the time of purchase. This creates a debit in the Default - Discounts contra revenue account, representing a reduction of income.
$7.78 is the remaining rebate value, which is deferred for the time being. A proportional amount will move to another account after each activity occurrence.
$12.62 and $25.16 are owed to the Canadian and Quebec government (in our case). This creates a credit in a tax liability account
$27.67 is recognized for fitness classes that already occurred. This creates a credit in the activity's revenue account.
📆 What happens with the deferred rebate after each occurrence?
With each class occurrence, journal entries show a proportional amount of the activity's deferred value credited to the activity's revenue account. As for the rebate, a proportional amount is debited from the Default - Discounts contra revenue account and credited to the Default - Deferred Discounts liability. This reduces your income.
Below, one of the classes in the session has occurred:
A debit is created for $1.98 in the Default - Deferred revenues account where the activity revenue was initially deferred. A credit of the same amount is created in the activity's revenue account.
$0.07 is the rebate value pertaining to this occurrence. This creates a debit in the Default - Discounts contra revenue account. A credit is then created in the Default - Deferred Discounts account.
5. Frequently Asked Questions
1. What permissions do I need to use custom items?
At least 2 permissions are required (*) to use custom items.
🔑 Under the Clients group:
View client accounts*: View the list of client accounts and account details.
Client billing: View a client's billing page and their transactions.
Manual invoicing and crediting*: Add an invoice or credit memo from a client's account and add a custom item at checkout.
🔑 Under the Payments group:
Custom items settings: View, create, modify and delete custom items settings.
2. Is Amilia's service fee charged on custom items?
Amilia's 1% service charge applies to extra fees.
Rebates don't reduce the service charge. If a $20 item is reduced to $18 with a rebate, the service charge is calculated on the initial $20 amount.
3. Can I add a custom item to an invoice after it's been created?
After the invoice is created, you can add a custom item (extra fee or rebate) while canceling (or replacing) another item on the invoice. Otherwise, you can give a rebate on an invoice item after the invoice has been created.
For rental contracts, you can add custom extra fees while the contract is in draft or when editing a new version of an approved contract.
4. Can I automate an extra fee?
Custom items can't be automated. Check out the Fee app in the Apps tab if you'd like to automatically apply a fee at checkout (based on certain criteria). It's free!
👉 Custom extra fees, automated fees, service fees and administrative fees are different types of fees that can be applied in SmartRec.
5. What's the difference between an extra fee vs. an administrative fee/penalty?
Custom extra fee | Administrative fee/penalty |
Has its own ledger code but can also use another one | Doesn't have its own ledger code Any ledger code can be assigned |
Available for use at checkout, when creating an invoice in Client Billing, during replacements, in a rental contract, and at the point of sale (POS) |
Only available for use when performing a cancellation in Client Billing |
6. What's the difference between a custom rebate and an automated discount?
Custom rebate | Automatic discount |
Manually applied | Automatically applied |
Has its own ledger code but will use the ledger code of an item if it's linked | Always uses the ledger code of the item being discounted |
Can be applied as a credit to the client's account, or reduce the cost of a linked item | Always applied to an invoice item. Can't be applied on an account level |
Customizable rebate amounts | Discounts are based on discount rules |
Under Sales column(s) in reports | Under Automatic Rebates column(s) in reports |
Doesn't reduce Amilia's service fee | Reduces Amilia's service fee |
7. Can custom items apply to a subscription's recurring billing?
When custom items are applied at checkout, they impact the amount to pay now. Custom items are not applied to recurring subscription billing.
8. What happens if I change the ledger code of an activity linked to a rebate?
When you change ledger codes in SmartRec, past transactions aren't updated in your reports nor on the invoice in the client's billing. Everything stays as it was when it was first invoiced. It's only going forward that invoices (and linked custom rebates) will show the new ledger code.
9. Which reports are relevant to custom items?
Custom items are tracked separately from automated discounts and fees. This means that manual extra fees & rebates are tracked in the Sales columns of your reports.
📄 Sales by administrators
Extra fees at checkout, via the Operations menu, or during a replacement is a Custom product.
Administrative fee/penalty during a cancellation/replacement is a Penalty product.
Create a credit via the Operations menu is a Custom product.
Rebate at checkout or during a replacement is a Custom discount product.
Give a rebate on an invoice is the same product type as the item it’s linked to. For example, if you 'Give a rebate' on an activity, the rebate credit is tracked as an Activity product on the report.
📄 Breakdown of sales
Review individual sales transactions within the date range. See custom items on the 'Charges on invoice' sheet. In the Sales columns, extra fees are a sale and rebates are credits. Look at the Description column (Q) if you want to know when the custom item was applied.
A custom item applied at checkout has Online purchase as a description.
A custom item applied via the Operations menu has the custom item’s label as a description.
A custom item applied during a Replacement has Online purchase (Replacement) as a description.
Give a rebate via the invoice has the custom item’s label as a description.
📄 Reconciliation summary
Shows the total invoiced for each category of billable items (drop-ins, per program, credits, custom items, etc.), plus the total of each payment method received (i.e., cash, credit card, eCheck, etc.). On the 'Detailed summary' sheet, invoiced and cancelled custom items are listed under the Custom category.
📄 Sales by ledger code
This report provides the sum of sales by ledger code (of items sold). Extra fees are sales tracked in the ledger code that was assigned when invoiced. Rebates added at checkout are tracked in the ledger code of the item they’re assigned to. When you Create a credit, or Give a rebate on an existing invoice, the rebate is tracked in the ledger code that was assigned to it.
📄 Sales summary
This report provides the sum of sales by product type. The 'Manual fees - credits' sheet shows the totals of all custom items used, and administrative/penalty fees by ledger code.
* Last updated in September 2022
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