Purpose Statement

The Derived Fee feature allows agencies to automatically calculate and apply percentage-based fees, such as state surcharges, municipal taxes, or permit fees, based on an invoice's subtotal. Unlike traditional Formula fee types, Derived Fees automatically recalculate whenever the invoice subtotal changes, ensuring the fee amount remains accurate throughout the invoice lifecycle.

This feature eliminates manual calculations, improves billing accuracy, and supports consistent fee collection for permit-related invoices.

Background Information

Many agencies are required to collect supplemental fees that are calculated as a percentage of permit costs. Prior to this feature, these fees had to be manually calculated or entered as one-time line items, increasing the risk of calculation errors.

The Derived Fee fee type provides a reusable fee schedule item that:

• Calculates a fixed percentage of the invoice subtotal.
• Automatically recalculates when eligible invoice line items or discounts change.
• Can be applied to manual invoices and online permit invoices.
• Supports multiple percentage-based fees on the same invoice without compounding calculations.

Derived Fees are supported on:

• Manual AHJ invoices
• Business Portal permit invoices
• Community Connect permit invoices

The following are not included in this release:

• Inspection auto-generated invoices
• Hydrant invoices
• Compounding percentage calculations
• Minimum or floor fee logic
• Configurable rounding
• Variable percentage rates

Required Permissions

Video

Step-by-Step Guide

Create a Derived Fee

1. Navigate to Invoicing > Fee Schedule.
2. Select New Line Item.
3. Complete the required line item information.
4. From the Fee Type dropdown, select Derived Fee.
5. In the Fee Formula field, enter the calculation using the existing INVOICE_TOTAL placeholder and a decimal percentage.
6. Complete any remaining required fields.
7. Save the line item.

1. Attach the Derived Fee to the appropriate Permit Type if it should automatically apply to online permit invoices.

Add a Derived Fee to a Manual Invoice

1. Create or open an editable invoice.
2. Select Add Line Item.
3. Choose the desired Derived Fee from the available Fee Schedule items.
4. The system automatically calculates the fee based on the invoice subtotal.
5. Review the updated invoice total.
6. Save the invoice.

Automatic Application in Online Portals

If a Permit Type includes a configured Derived Fee:

1. An applicant submits a permit through the Business Portal or Community Connect.
2. The system automatically adds the Derived Fee during invoice generation.
3. As applicants answer fee-driving custom questions, the Derived Fee recalculates automatically whenever the invoice subtotal changes.
4. The applicant is presented with the updated total before payment.

Best Practices

• Create descriptive names for Derived Fees so they are easily identifiable.
• Use one Derived Fee for each required surcharge or percentage-based fee.
• Verify the decimal percentage entered in the Fee Formula before saving.
• Attach Derived Fees only to Permit Types that require them.
• Review invoice totals after adding or removing discounts.
• Remember that multiple Derived Fees calculate independently from the same subtotal and do not compound.

Troubleshooting & FAQs

Why is the Derived Fee option unavailable in the Fee Type dropdown?

Derived Fee cannot be selected when the Automate option is enabled. Disable Automate before selecting Derived Fee.

Can I edit the calculated amount directly on the invoice?

No. Derived Fee amounts are system-managed and cannot be edited directly. They can be removed from the invoice if necessary.

Why did the Derived Fee amount change?

Derived Fees automatically recalculate whenever standard invoice line items or discounts change while the invoice is in an editable state.

Can multiple Derived Fees be added to one invoice?

Yes. Multiple Derived Fees are supported. Each calculates independently using the invoice subtotal.

Do Derived Fees calculate from other Derived Fees?

No. Each Derived Fee calculates only from the invoice subtotal. Derived Fees are excluded from one another's calculations.

What happens if the invoice subtotal is $0.00?

The Derived Fee amount is calculated as $0.00.

Can Derived Fees be added to Paid or Locked invoices?

No. Paid, Locked, and Voided invoices are not editable. The invoice must first be reopened by a user with the appropriate permissions.

Can agencies report on Derived Fees?

Yes. Because Derived Fees are stored as invoice line items, they can be reported using the existing Ad Hoc Report Builder by filtering on the fee name.