A billing fee is an additional charge that can be added and itemised on an invoice. The billing fee functionality allows agencies to comply with legislative requirements whereby the agency must charge and collect a fee on behalf of the government when invoicing certain types of clients for the supply of staff or services, as required under the New Zealand All of Government (AOG) invoicing scheme. However, the functionality can also be used if any kind of billing fee is required to be applied and itemised on an invoice.
Billing fees can be created at the parent company level, client level and cost centre level. For example, where a billing fee is created at the parent level, all job orders belonging to any client and client cost centre linked to the parent company will be subject to the billing fee.
Billing fees have a configurable billing fee rate, which is subject to validity dates and can therefore change over time, and a rule that determines how the fee is calculated.
Currently, one rule called AOG Admin Fee is available and it applies the following formula to calculate the billing fee:
(pay amount + provider fee) x billing fee rate
Where:
pay amount is the amount paid to the payee
provider fee is the margin amount (ie. bill amount exc. tax - pay amount - bill oncosts)
billing fee rate is the fee percentage that is applicable on the invoice date.
Billing fees are exclusive of tax (GST/VAT or equivalent).
Invoice Configuration
Once a billing fee record has been created, it will be automatically applied to any invoices that include invoice items that are linked to the parent, client or cost centre that is selected on the billing fee record.
The table below lists and describes the invoice format fields that can be used within an invoice format to facilitate printing billing fee information on invoices.
Invoice Component | Field | Description |
|---|---|---|
Invoice Items | Agency Fee | Prints the agency fee amount that applies to the listed invoice item. This amount is the margin amount divided by the pay rate. |
Invoice Items | Billing Fee Total | Prints the total amount of all billing fees that apply to the listed invoice item. This field does not need to be included in an invoice format if there is only ever one type of billing fee that is applicable. Where that is the case, the Billing Fee: <billing fee name> field can be used to print the total of the individual billing fee that applies without printing a separate overall total (for more information, see below). |
Invoice Items | Billing Fee: <billing fee name> | Prints the billing fee amount that applies to the listed invoice item, where <billing fee name> is the name of the billing fee, as configured in Billing > Maintenance > Billing Fees, that has been applied to the listed invoice item. A separate Billing Fee: <billing fee name> field is available in the Portal Maintenance > Document Formats module per unique billing fee that is configured under Billing > Maintenance > Billing Fees. |
Invoice Items | Margin | Prints the agency's profit margin for the listed invoice item. This is calculated as <bill total> – <pay total>. Oncosts are not factored into this calculation and therefore this amount is not necessarily the same as the provider fee that is referenced by the AOG Admin Fee rule. |
Invoice Items | Oncost Group <oncost group name> | Prints the sum of all oncost amounts that are applicable to the listed invoice item, where those oncosts are part of the corresponding oncost group. A separate Oncost Group <oncost group name> field is available in the Portal Maintenance > Document Formats module per unique oncost group that is configured under Portal > Billing > Maintenance > Oncost Groups. For more information, see Oncost Group Maintenance. |
For more information about invoice formats, see Document Formats.
The sample invoice below shows how the abovementioned fields could be incorporated into an invoice format to facilitate billing fees.
