Here we’ll discuss what a Cost-Type Transaction is, and how you can utilize it for your company.
We will cover what is available, however depending on your business model, you may not use this type of transaction, or you may use it in a different way. Feel free to re-purpose the functionality as you see fit.
What is it?
A Cost-Type Transaction is a specific type of charge you are adding to an account, that increases the balance due. Often, costs are incurred by your business (agency) during the attempts to collect from the individual (debtor). This may include:
- Postage costs
- Collection fees
- Court costs
- Filing fees
- Charge back fees
- Bounced check fees
- Missed payment fees, and more
How do you set up a Cost?
By default, we supply you with several “stock” transaction descriptions under Financials > Transactions that you can choose from when posting a cost. However, you may wish to rename, remove, or add additional ones to the list.
You will have to go to Financials > Advanced at the top right-hand corner, and either choose an existing one to edit/delete from the left-hand side of the screen, or create a brand new one on the right-hand side of the screen. Just set the type to Cost and click Insert New to save it:
Once you click Insert New, this description will be available on Financials > Transactions. You can then select it from the drop down list, and put in the necessary information, such as how much the cost should be for.
Another box, Reference Type, will appear. This corresponds to the next screen you’ll see when you click Insert Transaction:
Because a Cost is often something your agency is incurring, and you are passing on this amount to the debtor, SimplicityCollect will ask if you’d like to write a check to the specific entity who you are paying out of pocket. In many cases you have already incurred the cost and do not need to write an additional check. If so, click No Check to close this window.
If you are Printing or Queuing a check, you’ll find the check information on the Accounting tab.
Once this window is closed, you’ll see the Cost listed at the bottom of Financials > Transactions, just like all other transactions.