Surcharge Pricing

← Price Models

Surcharge pricing adds a fee or extra charge to the original price of a product or service. To this end, you define a commission and, in addition, select a charge model (see General Billing Settings).

This will create an additional line item to represent the surcharge or commission. The charge model (Mark Up or Mark Down) defines the commission calculation type.

Mark Up

With the Mark Up charge model, the item price is the unit price of the first invoice line item, and the second invoice line item is the calculated commission. The two item totals are added up. For example, an item price of 100,00, a commission of 5% and the charge model Mark Up would produce these invoice line items:

Qty	Unit Price	Commission	Pos Total
1	100 EUR		100,00
1	100 EUR	5%	5,00

Mark Down

With the Mark Down charge model, the prices for the two items are re-calculated such that the sum of the item totals equals the original total. The first line item is calculated like price - (price * commission), and the second line item is calculated like price * commission. An item price of 100,00, a commission of 5% and the charge model Mark Down would, consequently, produce these invoice line items:

Qty	Unit Price	Commission	Pos Total
1	95 EUR		95,00
1	100 EUR	5%	5,00