Manager Forum

We do work for a company who use's element fleet management and they charge us a 3% processing fee so when check comes to post payment it is always less than invoice so it always looks like they owe us money. Is there a way to do this so it will not mess up bookkeeping.

We have same issue here with ARI - Automotive Resources International. We discount the RO by 3% however, it may not be the best or proper way of handling the issue.

Could you add a line item for + 3% processing fee before finalizing the invoice?

We set up a payment type to apply against the balance after payment.

We run invoice as the normal invoice. when we receive the direct deposit we take the payment, except instead of "check" or "Visa" we tag it "direct deposit" and post the amount paid, the 3% we make as an "additional payment" and tag that one "write off". At the end of day I break it down in my excel sheet.

We Set-Up A new Payment Type Called Discount. The Normal Payment Goes Through; Then A Second Payment To Discount. Hope That Helps.

I expect full payment for my invoice and when they deduct 3% I'm losing money. Over a year's time it add's up. Why should I show it as a discount when they are already getting fleet rate and the company wont let me add 3% so when they charge 3% it would all even out.

ANTSAUTO1 wrote:I expect full payment for my invoice and when they deduct 3% I'm losing money. Over a year's time it add's up. Why should I show it as a discount when they are already getting fleet rate and the company wont let me add 3% so when they charge 3% it would all even out.

We are charged the 3% for direct deposit. If you ask for check it takes weeks to get it.

ANTSAUTO1 wrote:I expect full payment for my invoice and when they deduct 3% I'm losing money. Over a year's time it add's up. Why should I show it as a discount when they are already getting fleet rate and the company wont let me add 3% so when they charge 3% it would all even out.

Fleet rate? Yup. I have a fleet rate.....and it's HIGHER to cover these costs.

I would charge them more to cover the costs and since it takes longer to work around it it would be more then 3%

ANTSAUTO1 wrote:We do work for a company who use's element fleet management and they charge us a 3% processing fee so when check comes to post payment it is always less than invoice so it always looks like they owe us money. Is there a way to do this so it will not mess up bookkeeping.

I have a write off payment category, and show the balance paid as a write off. That way my money balances and the higher ups see what is being deducted. I have customers who use Element, Enterprise and ARI fleet companies. We are a fleet repair shop so we have this a lot. Element is now deducting 8% and ARI takes 8% if you don't use their automated system. Its ridiculous, because I have to do all the work from figuring out the bills to inputing the figures into their systems.