This article will explain Step 7B - what the Category Type: Fee is all about
Category Type: Fee
Fee categories are assigned to individual Fee codes in order to assign what General Ledger accounts to be used when the fee is involved in an accounting entry
As a default, your Blackpurl would have been setup with 1 x Fee Category but you can setup multiple Fee type categories to suit your needs. Any time you wish for a Fee code to trigger a different General Ledger, you will need to set up a new Fee category to make this happen
For Fee Category you will only need to indicate the Income General Ledger - this General Ledger will be the offset when you use this Fee in an accounting transaction
Please also note that you will also need to assign the correct General Ledger based on the Fee:
If you are using the Fee on a Selling transaction ie on a Customer Order, the Category will need to have a true Income General Ledger indicated in the Income General Ledger field
If you are using the Fee for a Purchasing transactions ie Vendor Invoices, the Category will need to have a true Expense General Ledger indicated in the Income General Ledger field
For example - Freight in (Purchasing transaction) and Freight out (Selling transaction) Fees
You will need to generally set up 2 fees:
- 1 x Freight charged on incoming parts by the vendor
- 1 x Freight charged to Customers to recover Freight
These two Fees will then need to have two different categories based on whether they are a Selling or Purchasing fee:
The Fee Category assigned to Freight in Fee (Purchasing), the Income General Ledge field would need to assigned an Expense General Ledger
The Fee Category assigned to Freight out Fee (Selling), the Income General Ledger field would need to be assigned to an Income General Ledger
