Fee realization is when your company delivers a service that will result in a fee that can be invoiced to one of your customers. Fees are realized through two different types of events.
- A time card is submitted and approved against a contract placement
- An event associated with an assigned product or service defined within the Catalog occurs
Fee realization happens during the course of business operations as data is captured and recorded by your team. The Back Office module will automatically aggregate all realized fees during the invoicing process and generate a batch of invoices to be delivered to your AR/GL system.
Fee Realization from Time Cards
For more information on time cards and the timesheet add-on, see these details.
Fee Realization from Products and Services
Fee realization for products and services occurs when two conditions are met: An event occurs that has an associated fee and a Customer Assignments rule has been defined for the associated Billto entity.
a. Placement Products & Services
When using the Back Office module, once your team records a placement within BrightMove, a fee is realized. These are commonly referred to as hiring fees or recruiting fees. They can be flat fees or calculated from percentages of the placement salary. When the placement is saved, the Back Office module evaluates the placement salary attributes and the assigned product pay plan and calculates the appropriate fees to be invoiced. These realized fees are converted into invoices and subsequently loaded to your AR/GL system through the supported BrightMove integrations. The event date for placement products, the effective date of the fee and it's invoice, is the start date of the placement.
Placement fees are realized by selecting the appropriate pay plan on the Placement screen.
In this scenario, the placement has been saved with base salary of $100,000 USD and the Direct Hire Fees | Standard Placement Direct Hire Fee | 50/50 - Day 1/Day 90 pay plan. For this example, considering the following additional values:
- There is a product variant which defines the fee saved in the catalog
- The variant is in a family called Direct Hire Fees
- The variant is called Standard Placement Direct Hire Fee
- The variant has a price set as 25% percentage fee
- The pay plan has two lines with payment modifier strategy set as percentage
- The first pay plan line is set for 0 days from event
- The second pay plan line is set for 90 days from event
- This pay plan results in a $25,000 fee realization.
- This pay plan realizes fees to be invoiced in two equal payments, each for 50% of the total fee, on two specific dates.
- 0 day after the start date of the new employee, or July 10, 2023 in this example.
- 90 days after the start date of the new employee, or October 8, 2023 in this example.
b. Non-Placement Products & Services
When using the Back Office module, your team can record other fees which are not associated with placements as well. These are called Non-placement products. Typical non-placement fees are program management fees, ad hoc fees and other charges. Non-product fees can be generated in a one-time fashion or through a schedule. Like placement fees, these realized fees are converted into invoices and subsequently loaded to your AR/GL system through the support BrightMove integrations. The event date for non-placement products, the effective date of the fee and it's invoice, is the data the fee was created.