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Considerations for Using Surcharges
Learn how to set up and manage surcharges correctly to avoid billing issues and ensure accurate calculations.
Required Editions
| Available in: Lightning Experience |
| Available in: Professional, Enterprise, and Unlimited Editions where Insurance Brokerage is enabled |
Here are some things to keep in mind while working with surcharges.
A surcharge must be associated with:
- An Insurance Policy, and
- Only one of the following entities:
- Insurance Policy
- Asset Insurance Policy Participant
- Insurance Policy Coverage
Don’t associate the same surcharge with multiple entities at the same time. A surcharge can be linked to the policy and only one additional entity (asset, participant, or coverage).
If a surcharge is associated in unsupported ways, the system may allow the configuration, but billing doesn’t consider those amounts, which can lead to unexpected billing results.
Surcharges aren’t automatically deleted when you delete a coverage, asset, or participant. If you remove a coverage or asset without first deleting its associated surcharges, those surcharges remain linked to the policy, creating an invalid hierarchy and causing endorsement transaction generation to fail. So, the best practice is to always delete surcharges first, then delete the coverage, asset, or participant before endorsement.
Parent Surcharge
The Parent Surcharge field is used to create a hierarchy between two surcharge records. Use the Parent Surcharge field when you want to apply a tax on top of a fee. In this setup, the fee acts as the parent surcharge, and the tax is added as a child surcharge on that fee. This relationship ensures that the system calculates billing correctly by applying the tax to the fee amount instead of treating both as independent charges.
The parent–child surcharge relationship must follow these rules:
- The parent surcharge must be of type Fee.
- The child surcharge must be of type Tax.
- A Tax surcharge can reference a Fee surcharge as its parent.
- A Fee surcharge must not reference another surcharge as its parent.
If you select a parent surcharge, the system enforces these rules to ensure valid billing calculations. If you don’t specify a parent surcharge, the surcharge is treated as a standalone charge.
