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Charging Credit Card Fees on Invoices

  • 1.  Charging Credit Card Fees on Invoices

    Posted 10-22-2020 17:43
    We have a client that does a very high volume of business paid business by credit card for both parts and equipment, upwards of $8 million/year. Some customer invoices can be upwards of $250K charged to a credit card. As you can imagine, their fees are a hefty chunk each month. They would like to start charging back the credit card fees on most invoices. Some are paid as deposits on orders, but some are run through cash receipts for terms invoices, some through CIMcloud, so ideally a solution would work for all three. 

    In Sage 100, has anyone found an elegant way to charge back fees to customers on a sales order (pre-auth would need to include the fees) or through cash receipts (terms invoices never had the fee included on the order) without manually calculating a percentage and adding it as a line item, or manually entering a GL distribution in cash receipts? Their volume is too high to attempt this manually.

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    Bill Pfahnl
    Nims & Associates
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  • 2.  RE: Charging Credit Card Fees on Invoices

    Posted 10-22-2020 18:01
    I should add... the fees only needs to be a fixed percentage so my thought would be a sales order script that calculated, for example, a 2.5% charge based on the sum of the line items and add it as a misc charge to a fees clearing account. This would only happen for invoices with specific terms codes (ccard). That's my fallback. I'm just wondering if other solutions exist.

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    Bill Pfahnl
    Nims & Associates
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  • 3.  RE: Charging Credit Card Fees on Invoices

    Posted 10-22-2020 18:21
    Did this for a customer using a negative discount rate, and relabeled the field on the forms.

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    Michelle Taylor
    ERP Consulting Manager, CS3 Technology
    918-388-9772
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  • 4.  RE: Charging Credit Card Fees on Invoices

    Posted 10-22-2020 18:17
    I found this included in a Sage City question about this. I haven’t heard of the integration before - https://www.kmpfinancial.com/

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    Wayne Schulz - Schulz Consulting - 860-516-8990
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  • 5.  RE: Charging Credit Card Fees on Invoices

    Posted 10-22-2020 18:17
    Sage City original message - https://www.sagecity.com/support_communities/sage100_erp/f/sage-100-core-financial-modules/101893/adding-credit-card-processing-fees-to-invoices

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    Wayne Schulz - Schulz Consulting - 860-516-8990
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  • 6.  RE: Charging Credit Card Fees on Invoices

    Posted 10-22-2020 18:38
    Edited by Moira Goggin 10-22-2020 18:39
    Could you use Item Price Level maintenance to create a CC price and Cash Price? You wouldn't have to give up a field, such as discounting, the total price comes through for pre-auth on the CC and it's 'invisbile' to the customer. If a script was needed the trigger could be the terms code, i.e., paid by CC.

    This would not separate the upcharge to a specific GL account, but still may be easier to maintain if the upcharge is a percentage of price.


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    Moira Goggin
    Chismet Consulting Corp.
    Long Beach CA
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  • 7.  RE: Charging Credit Card Fees on Invoices

    Posted 10-22-2020 18:44
    A negative header discount might work (assuming they don't already use header discounts).  I believe this goes to a separate account, and already flows to transaction work tables.


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    Kevin Moyes
    Technical Systems Analyst
    Munjal White Consulting Co.
    Toronto ON
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  • 8.  RE: Charging Credit Card Fees on Invoices

    Posted 10-22-2020 19:25
    Thanks for all the responses.

    @Wayne Schulz I did see this response on Sage City, but a 'click to pay' solution won't work for them. They need to have the amount pre-authorized on most orders. They currently use Paya and process everything in Sage 100. They won't ship parts until it's paid.
    @Michelle Taylor @Kevin Moyes I originally told the client this could be an option, but they already use the discount field and it would still need to be calculated manually (unless by script, of course).
    @Moira Goggin They use price levels extensively so managing this would difficult.

    I don't think there's a solution that will please everyone since they have so many parts to their business and so many sources of invoicing; sales orders (parts, equipment, and job cost), service tickets direct to invoice (IIG), web sales (CIMCloud), and cash receipts (CIMCloud self-service).  

    We're still brainstorming, but it looks like our best bet might be a script on both sales order and invoices where it adds a line for a fixed percentage based only on line items (+ a smidge to cover tax and freight) and only for certain terms codes.​​​​ 

    They asked what over companies do and I told them they usually build it into their prices, where customers may be turned off by a line item showing yet another fee. Or, they may decide to pay by check which adds more back-end overhead costs.

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    Bill Pfahnl
    Nims & Associates
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  • 9.  RE: Charging Credit Card Fees on Invoices

    Posted 10-22-2020 19:40
    Beware:
    https://www.valuepenguin.com/credit-card-surcharges-convenience-fees

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    Kevin Moyes
    Technical Systems Analyst
    Munjal White Consulting Co.
    Toronto ON
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  • 10.  RE: Charging Credit Card Fees on Invoices

    Posted 10-22-2020 20:26
    It looks like DSD has a surcharge modification though it probably doesn't do everything ( cash receipts for one ).

    https://development.dsdinc.com/enhancement/surcharge-calculation-for-invoice-entry-2/

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    Wayne Schulz - Schulz Consulting - 860-516-8990
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  • 11.  RE: Charging Credit Card Fees on Invoices

    Posted 10-23-2020 07:27
    @Dan Burleson wrote a nifty script several years back for me that calculates a miscellaneous "environmental fee" on SO's and invoices.  The trigger could probably be based on the terms code being a CC.  You could add an override flag in customer maintenance  ​if you wanted customer to be exempt.  Regarding cash receipts, might have to be a manual calculation at time of entry that grosses up the amount paid.  Personally, if customer pays by CC, they should not be allowed terms for that invoice.  But then again, if you know the customer is allowed terms and pays by CC, create a CC terms code then put the misc charge on the invoice to begin with.

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    Jeff Schwenk
    FORMER 90M Board Member
    Bottomline Software, Inc.
    Waynesboro VA
    540-221-4444
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  • 12.  RE: Charging Credit Card Fees on Invoices

    Posted 10-23-2020 11:28
    This is also not so different from the mirriade of tariff scripts that are being requested.

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    Dan Burleson
    Software Consultant
    Connex Software
    Corvallis OR
    541-224-6642
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  • 13.  RE: Charging Credit Card Fees on Invoices

    Posted 10-23-2020 09:27
    As an observation - based on two kids in school - all of the colleges charge a convenience fee if you pay by credit card.

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    Wayne Schulz - Schulz Consulting - 860-516-8990
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