Billing Fee Maintenance

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.

As of v12.21, the following billing fee rules are available.

Rule Name	Description	Formula

Rule Name

Description

Formula

AOG Admin Fee - Pre Gen 3

This rule supports New Zealand AOG staff procurement contracts that commenced prior to September 2023.

(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.

AOG Admin Fee - Gen 3

This rule supports New Zealand AOG staff procurement contracts that commenced from September 2023. These are also known as Generation 3 contracts.

provider fee x billing fee rate

Where:

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 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 can be used where only one type of billing fee applies to invoice items or, if multiple types of billing fees apply, it can be used in conjunction with the Billing Fee: <billing fee rule name> fields to show an overall total of the applicable billing fees at the invoice item level (for more information, see below).
Invoice Items	Billing Fee: <billing fee rule name>	Prints the billing fee amount that applies to the listed invoice item, where <billing fee rule name> is the name of the billing fee rule (e.g. AOG Admin Fee - Gen 3). A separate Billing Fee: <billing fee rule name> field is available for each unique billing fee rule that is referenced by billing fees that are configured under Billing > Maintenance > Billing Fees. This caters for situations whereby multiple billing fees, with different billing fee rules, apply to invoice items because it allows each of the billing fees to be itemised separately at the invoice item level.
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 billing 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.

An example of an invoice that has been generated using a document format that uses some of the billing fee related fields described in the table is shown below.

For more information about invoice formats, see Document Formats.