Charges are an amount of money that the user has to pay, such as Fees & Penalties.
- Fees – Fees are charged for services like membership fees, loan disbursement fees, withdrawal fees etc.,
- Penalty – Penalties are fees that a customer should pay if they violate the terms of a product. E.g., Late Payment, Early Withdrawal, etc.,
Charges may be associated with a product. When an account is opened based on a product that charges have been associated with, the account will include all charges that are associated with the product. The charges are not defined for a particular product, may be associated with individual client accounts.
Charges support for Loan, Savings & Deposits, Client and Shares.
Go to Admin ->> Product ->> Charges. Click on the + Create Charge to add a new charge to your loan account.
In the charges form, it displays the existing list of charges.
If the user wants to create a new charge click on +Create Charge. In the Create Charge form, select the charges applied from the down down and update the necessary details for the new charge.
Fields & Description
- Charges applies to (*)– Select the values from the drop down to apply the charges. (e.g, Loan)
- Name (*) – Specify the name of the Charge
- Display Text – Specify the name of the Display Text
- Currency (*) – Select the currency from the drop down
- Charge Time Type (*) – Select the Charge Type from the drop down
- Charge Calculation (*) – Select the Charge calculation to be added
- Charge Payment By (*) – Select the mode of payment from the drop down
- Amount (*) – Specify the amount to be charged
- Active – Check the box if this charge is Active
- Is penalty? – If this checkbox is selected then the particular charge will be mapped to
Penalty. If the checkbox is not selected then this particular charge will be mapped to
(In this example, the charge name is selected as Penalty).
Now in the Accounting module, it shows the penalty name which we have added.
If the user wants to add the value for charges they can do it in the below way.
Now the user can create an accounting rule against the penalty types.