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Service Fee

Service Fee

Owned by Lango: Language and translation manager
Last updated: Sept 13, 2024Version comment
5 min read

Service Fee includes any fee or service that cannot be defined under any other type of service. This is the most universal service, in the price list of which it should be possible to define any fee or service. The service is defined in relation to the rate period. When calculating this service, the rate period is then taken into account so that the amount for the calculation is correctly calculated.

Fee and Service Pricelist

The fee list is used to record fees. The records are then used to calculate the fee/service service.

Field:

  • Code

    • The user enters a unique fee/service code identifying the fee

  • Service Type Code

    •  The user selects the Service Type Code from the Service Types code list

  • Fee/Service Description

    • The user enters a specification of the fee/service

  • Fee/Service Period

    • The user selects from Month, Year, Contract Duration

    • Subsequently, the user enters the rate for the given fee/service for the given period

  • Vendor No.

    • The user selects the Vendor No. of the fee/service from the vendor code list if the fee/service is supplied from a specific vendor

  • Vendor Name

    • The system automatically fills in after selecting Vendor Numbers

  • Valid From

    • The user enters the start date of the fee/service.

  • Valid To

    • The user enters the expiry date of the fee/service.

  • Premium Fee/Service

    • The user chooses from the options Yes / No

    • This is an informative field only

  • Reflect Aliquot

    • The user chooses from the options Yes / No

    • If the user changes the value of the field to YES, then the system automatically changes the value of the Full Aliquot Payment field to NO. This setting cannot be changed by the user.

    • If the field is checked (Yes), then the system calculates the service with respect to the aliquot number of days in the first and last month of the contract term.

    • If the field is unchecked, then the system calculates the service regardless of the aliquot, i.e. the service is calculated for the whole month regardless of when the contract starts.

  •  Full Aliquot Payment

    • The field is editable only if the value of the Reflect Aliquot field is NO. Otherwise, the field is non-editable and the value of the field is NO.

 

EXAMPLE CALCULATION TO SET UP THE TAKE INTO ACCOUNT ALIQUOT AND FULL ALIQUOT PAYMENT FIELDS:


Handover date = 13.4.2017
Financing Term = 12
Expected termination date = 12.4.2017
Fee/Service Period in Price List = Month
Client rate = 100 (the same for all three services)
Service 1: Reflect Aliquot = YES, Full Aliquot Payment = NO,
Service 2: Reflect Aliquot = NO, Full Aliquot Payment = NO
Service 3: Reflect Aliquot = NO, Full Aliquot Payment = YES

a) Service Calculation 1: Take into account Aliquot = YES, Full Aliquot Payment = NO
Calculation Value = 12 * Client Rate = 12 * 100 = 1200
Value To Payment = Value To Calculation / 12 = 1200 / 12 = 100
Explanation: in this case, we calculate the total value for the actual number of repayment periods (we do not count the installment for the whole month until the first and last month), we calculate the installment to the first less than month by taking an aliquot part from the entire installment according to the number of calendar days in the given (first) month.
First Aliquot Payment = (Value Per Payment * Number of Payment Days in the First Month) / Number of Days in the First Month = (100 * 18) / 30 = 60
Last Aliquot Payment = Value Per Payment - First Aliquot Payment = 100 – 60 = 40


b) Service Calculation 2: Take into account Aliquot = NO, Full Aliquot Payment = YES
Calculation Value = 13 * Client Rate = 13 * 100 = 1300
Value to Payment = Value To Calculation / 13 = 1300 / 13 = 100
Explanation: in this case, we calculate the total value in such a way that the full value of the fee/service is calculated in the first and last less than a month. We will also include this full value in the service payment schedule (Full Aliquot Payment = A). The result is 13 identical installments.
There are no aliquot payments.


c) Service Calculation 3: Take into account Aliquot = NO, Full Aliquot Payment = NO
Calculation Value = 13 * Client Rate = 13 * 100 = 1300
Value To Payment = Value To Calculation / 12 = 1300 / 12 = 108.33
Explanation: in this case, we calculate the total value in such a way that we calculate the entire value of the fee/service in the first and last less than a month (Take into account aliquot=N), but we will only add an aliquot (Full Aliquot Payment=N) in the service payment schedule in the aliquot payments. The result is the first and last aliquot payments, the rest in full.
First Aliquot Payment = (Value Per Payment * Number of Payment Days in the First Month) / Number of Days in the First Month = (108.33 * 18) / 30 = 65
Last Aliquot Payment = Value To Payment - First Aliquot Payment = 108.33 – 65 = 43.33

Fees/Service Rates (Rates)

Location:
On the Price List of Fees and Services via the Rates button.

 

Field:

  • Fee/Service Code

    • The system will automatically fill in the Fee/Service Code from the Fee and Service Pricelist line from which the rates were opened

    • Non-editable field

  • Purchase Price Excl. VAT (LCY)

    • The amount of the purchase price of the fee/service is entered manually by the user depending on the value of the Fee/Service Period field.

  • Margin % (Margin %)

    • To be entered manually by the user in %

    • If Fee Excl. VAT (LCY) has been entered, then the system will automatically calculate the value of the Margin % field according to the formula:

      • Margin % = 100 x (Fee Excl. VAT (LCY) / Purchase Price Excl. VAT (LCY) – 1)

  • Fee Amount Excl. VAT (LCY)

    • The amount of the fee for the customer is entered manually by the user depending on the value of the Fee/Service Period field. The value is entered into the payment calculation.

    • If Margin % has been entered, the value is calculated according to the formula:

      • Fee Excl. VAT (LCY) = Purchase Price Excl. VAT (LCY) x (1+Margin %/100)

  • Valid From

    • The user enters the start date of the fee/service rate

  • Valid To

    • The field is non-editable.

    • If the user creates a new rate (new line), then the field is filled in automatically with the Valid From date on the new rate minus one day.