Admin/management fees

Eddie Barker

Hi FE NXT peeps! We’re continuing work on admin fees (fee schedules in database view terms) and I had a couple questions I wanted to throw out to the hive mind:

How frequent is it that you apply maximum fees calculated (as an example don’t ever charge more than $10,000.00)? A reply might look something like “I do twenty separate fee calculations to cover my use cases; I charge maximum fees on eight of them.”

How frequent is it that you apply minimum fees calculated (as an example, don’t ever charge less than $1,000.00)?

If you’re calculating fees against a balance that’s in the ledger, how does that journal entry look in its simplest form?
Example: I have $10,000.00 in account A plus project B.
I take six percent of that or 600.00 as my calculated fee (using tiers and percentages and min/max).
Do you credit account A plus project B (the $10,000.00 lives here; after the entry it would be $9400.00) for 600.00, or some other account plus project?
Do you use more than one of these for your journal entry? (credit A+B for 200.00, credit C+D for 400.00)?
On the debit side for a fee (expense), is it a 1:1 relationship?
For example, does this 600.00 credit A+B, and debit E+F at 100%, or do you split the debits up (E+F for 300.00, G+H for 300.00)?

We’re also looking for some discovery around this to help us build the best solution, if you’re interested, please respond to this or email me at eddie.barker@blackbaud.com

Thanks for your time!


Random fact: In Michigan, it is illegal to chain an alligator to a fire hydrant.