Set Up Fee Items

A fee item is a product or service you charge for. Its type decides where you can use it, and its accounts decide how it posts to your books. At first setup, add the broad categories of what you sell. You can add more any time. For optional amounts members choose to pay, see Set up voluntary fee items.

Create a standard fee item

Add a fee item so you can put it on invoices, memberships, events or the store.

1. Go to Finance, Administrative section, click Billing Settings and select Fee Items. The page opens as Saleable Items and lists your current fee items.
   
2. Click the New button.
   
3. Enter a Name and choose the Fee Item Type. The type decides where the fee item appears, so check the fee item types table first.
4. Complete the accounting fields: Accounting Type, Income Account, Receivables Account, Deferred Income Account (accrual only) and Deposit Account. Ask your accountant if you aren't sure which accounts to use.
5. Complete any other fields you need. See What to enter in each field.

Checkpoint: All required fields are filled in and Is Active is selected.

6. Click Done.

After you save, the Membership Type section of the fee item lists any membership types that use it.

To get a list of every fee item and its settings, click Download on the Fee Items page.

What to enter in each field

Use this as a reference while you fill in the Add Fee Item screen.

Name and type

• Name: what staff see when they pick fee items.
• Fee Item Type: decides where the fee item is available. For example, a Membership type fee item isn't offered in Events. You can also filter and report by type.
• Product Category: used for filtering and reporting. Pick one, or click Add (+) to create a category.
• Description: shows in the fee item list and as the line on invoices. You can change it on a single invoice.
• Product Description: extra details for staff only.

Price and quantity

• Default Price: fills in when you add the fee item to an invoice. We recommend leaving it at 0, so you only update prices in one place.
• Default Quantity: use it when there is a minimum purchase. Staff can change it.

Accounting

• Accounting Type: Cash records income when it is received. Accrual records income when it is earned. Your accounting practice decides this.
• Income Account: the account credited when the fee item is invoiced. Click Add (+) to add an account.
• Receivables Account: the accounts receivable (A/R) account debited when the fee item is invoiced. If you use QuickBooks Online (QBO), use your default A/R account in QuickBooks.
• Deferred Income Account: accrual only. Holds income you have chosen to recognize later, such as at an event's start date.
• Deposit Account: for journal entries only. Your real bank account is set on your payment gateway. With QuickBooks Online, this must be Undeposited Funds. See QuickBooks Online Integration - Getting Started.
• Revenue Recognition Type: shows only for Accrual. Choose when income is recognized, for example Fully on Event Start Date.
• Default Revenue Recognition Months: the number of months to spread the income over, if it is recognized over time.

Taxes

Choose one:

• Product Tax Category: when tax depends on the contact. Tax uses the tax set on the contact's Billing Setup tab.
• Tax Set: when every contact pays the same tax. It applies to everyone except contacts marked tax exempt.

Options

• Voluntary: the member chooses whether to pay it, and it never counts as past due. Invoices show the amount without the voluntary fee first. A voluntary fee must use the Membership type. Selecting it sets Accounting Type to Cash and Revenue Recognition Type to Fully on Paid Date.
• Is Recurring Fee: select for repeating charges such as membership dues or fundraising pledges.
• Is Active: only active fee items can be billed or picked.

Realtor Edition: splits and financial mapping

In the Realtor Edition, the fee item has extra fields for your National Association of REALTORS® (NAR) e-commerce splits and your financial record mapping.

• For setup, see M1 Financial Record Initial Setup and NAR E-Commerce Initial Setup - Dues Split.
• For a new membership fee item, also complete the financial mapping for splits in Real Estate Finance Settings.
• With BP Mode on, you can't change the financial mapping or dues split after saving. Create a new fee item instead.

Fee item types: where each can be used

Pick the type that matches where you will use the fee item. You can't freely change the type once the fee item is in use.

When you create a single invoice with a Membership type fee item, select the membership on the line item.

Related articles

• Set up voluntary fee items
• Fee Items FAQ / Use Cases
• Set Up and Manage Your Chart of Accounts