Setting up Special Fees

Here is what we suggest for the two most common fees charged on parts; Tire Tax/Disposal Fee and Battery/Levy fee

Setting up Special Fees

Within the Pricing Tab of the Part Detail screen, there are two fields to handle supplemental charges on a specific part.

Hazard/Waste Fee: typically used to handle the battery/levy fee while the Special Fee is used to handle the tire disposal fee.
To make sure that these fields are pointing to the correct accounts, here are the settings you need to review:

1. System Settings> Accounting> Transaction Types:
   
   
   

1. Default Part Sales/Service Order Misc. Charges Credit Adjust GL Account: Select the account you wish to use when charging the Tire disposal fee entered in the “Special fee” field in the part detail screen.

2. Default Part Sales/Service Order Hazardous Waste Fee GL Account: Select the account you wish to use when charging the Battery/Levy fee entered in the “Hazard/Waste fee” field of the part detail screen.

3. Default Part Sales/Service Order Misc. Charges GL Account: Select the account you wish to use when crediting the tire tax/disposal fee entered in the “Special fee” field of the part detail screen.

These fields are found in both the Part Sales and Service tabs of each transaction type. Please review these settings for each transaction type to ensure that no matter the transaction, these fees will point to the correct account.

1. Other settings that need to be reviewed are found in System Settings> Tax>Tax:

3. Once all settings are confirmed, you can now assign the appropriate charges to the appropriate parts.

Example: Tire Part Number

 

From an invoice, when using the select part screen, you will be able to see if this part has a Hazard/Waste or Special Fee attached.


 

When the part is added to an invoice, the charges will automatically be displayed in the Misc/Freight field and disclosed on the printout as well.


 

You can also see which parts have a hazard/waste or special fee assigned from the Part Inventory Search Screen. Clicking on the column headers will sort the parts by order of increasing or decreasing amount.


 

Since the system is currently limited to only two fees in the part detail screen, parts will have to be created to handle any other additional fees.

1. Creating special fee part groups: From System Settings> Parts> Part Groups.

 

Use the insert item icon to add a new part group. (Example: Environmental Fee) In the “Sales Account” and “COGS Account” fields, select the appropriate account for this fee. Since there is no cost, select the same account for both fields.

1. Creating a Special Fee Part: From Part Sales and Management> Part Inventory

• Use the New Part icon to create a new part.
• In the General-Main Tab enter a part number, description, and vendor (use your dealership as the vendor).
• In the General-Other Tab select the part group that was created in step 1.
• In the Pricing Tab enter the “Standard Price” for this fee.

To avoid having this part appear with a red flag (Need to order), insert an adjustment (General Adjustment Tab) to give it a quantity. Since there is no cost, this will not affect your inventory value.

 

With the part now created, it can be added to either a parts or service invoice, without coming up as a Special order item, and will point to the correct accounts.
 

There are also setups for charges done through unit sales. For example Tire Fee is also being charged on the wheels of the sold unit.

1. To setup a default tire tax fee, go to System Settings> F&I> License fees> Other Charges Tab.

 

Here you will find all the hardcoded list of charges that can be setup with default amounts, accounts and applicable taxes. Make sure to put a checkmark in the boxes of the fees you wish to default on the deals.

For Tire Fee, enter the default amount charged on deals (i.e. if the tire fee is $3.00/tire, and the units you sell usually have 2 wheels, enter $6.00 as the default).

Once the charges are setup, they will automatically be displayed in the Misc/Freight field on the bottom right of the deal screen, point to the correct accounts and print to appropriate areas on the F&I forms.



By clicking on the Ellipse box, this will open the “Other Charges” window where you can change the amount of the fee if necessary. For example, if you’re selling a 3 wheeler, the default Tire Fee will have to be increased for the extra wheel.