Skip to content

Charges Module

Introduction

At our company, maintaining healthy cash flow and enforcing payment discipline are critical aspects of our financial management. To support these objectives, we developed a custom Charges module within EspoCRM. This module allows us to efficiently manage overdue invoices, calculate additional charges like interests, send formal payment demands, and control client access when necessary.

This document outlines the implementation, usage, and benefits of the Charges module, highlighting how it has streamlined our internal processes.

Implementation of the Charges Module

Purpose

The Charges module was designed to:

  • Automatically calculate interests and other fees for overdue invoices.
  • Generate clear, professional payment demand letters.
  • Integrate charge management into our overall financial workflows.
  • Enhance debt collection processes.

Key Features

  • Custom-built Charges entity within EspoCRM.
  • Automatic charge creation based on overdue invoice conditions.
  • PDF generation from multiple professional templates.
  • Full payment tracking and financial record generation.
  • Client account management (e.g., blocking accounts with unpaid charges).

System Automation

When an invoice becomes overdue:

  • The system automatically generates a new Charge record.
  • The Charge amount is calculated based on:
    • The overdue invoice's value.
    • Predefined interest rates or penalty rules.
  • A suitable Payment Demand Letter can be quickly created from a range of PDF templates.
  • Upon payment, the Charge record is marked as Paid, and an accountant note is generated for bookkeeping.

If the Charge remains unpaid for an extended period:

  • The system can restrict customer access or flag the client account, ensuring service continuity is tied to payment regularity.

Usage of the Charges Module

Charge Creation

  • Charges are triggered automatically when an invoice passes its due date without full payment.
  • Alternatively, users can create manual Charges for specific financial arrangements or disputes.

Payment Demand Letter Generation

  • Users can select from multiple prepared PDF templates.
  • Templates include:
    • Basic reminder letters.
    • Formal payment demands.
    • Pre-legal action notices.
  • Documents can be quickly generated and emailed directly from EspoCRM.

Payment Processing

  • When a customer settles their outstanding amount:
    • The Charge is updated to a Paid status.
    • An accounting note is generated, ensuring proper financial recording.

Customer Management

  • Unsettled Charges can lead to automatic account blocking.
  • The customer's CRM profile reflects their financial standing, helping teams take informed actions regarding project continuation or support services.

Practical Example

Imagine a customer has an overdue invoice of €2,000 for services delivered:

  • After 14 days past due date, a Charge is automatically created, adding a 5% late fee (€100).
  • A Payment Demand Letter is generated from a formal template and sent to the customer.
  • If the customer pays the full €2,100, the system marks the Charge as Paid and logs an accountant note.
  • If no payment is made after multiple notices, the customer's access to further services may be temporarily suspended until outstanding amounts are cleared.

Benefits Experienced

Improved Cash Flow Management

  • Proactive charge management encourages customers to pay on time.
  • Interests and fees help compensate for the financial impact of late payments.

Streamlined Financial Processes

  • Charge calculations, document generation, and customer communications are handled within EspoCRM, ensuring consistency and reducing administrative overhead.

Enhanced Customer Accountability

  • Automated procedures and formal reminders establish a professional, standardized approach to debt collection.
  • Customers clearly understand the consequences of delayed payments.
  • Formal Payment Demand Letters and properly booked Charges support potential legal proceedings if necessary.
  • Accountant notes ensure all financial entries are properly documented for audits.

Conclusion

The Charges Module has become a vital component of our financial operations at devcrm.it. By automating the management of overdue invoices, calculating additional charges, and integrating client access control, we have significantly improved cash flow, reduced manual work, and strengthened client payment discipline.

This powerful yet user-friendly solution is another example of how our company leverages custom EspoCRM development to create real, measurable value — both for ourselves and for our customers.