Fee: Discount Allowed and Service Charge Allowed

Path:

Administration > Manage Pricing > Fees > Base Item Fees

Overview

Each base fee on an item has two flags that control whether discounts and service charges (margins) are calculated for that fee during inward billing.

Flag	Default	Purpose
Discounts Allowed	OFF	When ON, the fee is eligible for discount from the Inward Discount Matrix
Service Charge Allowed	ON	When OFF, no service charge (margin) is added to this fee in inward billing

Note: Service charges (margins) apply to inward billing only. Outpatient billing does not calculate margins.

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Discounts Allowed

Controls whether the Inward Discount Matrix can apply a discount percentage to this fee.

• OFF (default): No discount is applied to this fee, even if a matching discount matrix row exists.
• ON: The system looks up the Inward Discount Matrix for the patient's payment scheme, BHT type, and admission type and applies the matching discount percentage.

This flag acts as an opt-in. Both the item and the fee must allow discounts for a discount to be applied. If either is set to not allow discounts, the discount will be 0.

Setting Discounts Allowed

1. Go to Administration > Manage Pricing > Fees > Base Item Fees.
2. Search for the item whose fee you want to configure.
3. In the fee list, locate the Discount Allowed column.
4. Toggle the button to Discounts Allowed for each fee that should receive matrix discounts.

Changes are saved immediately via AJAX — no separate Save button is needed.

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Service Charge Allowed

Controls whether a service charge (margin) is added on top of the gross fee value during inward billing.

• ON (default): The service charge is calculated using the Inward Price Adjustment matrix and added to the bill fee.
• OFF: No service charge is added to this fee, regardless of any price matrix configuration.

This flag is useful for fees that represent pass-through costs (e.g., government-rate charges, fixed external costs) where adding a hospital margin is not appropriate.

Setting Service Charge Allowed

1. Go to Administration > Manage Pricing > Fees > Base Item Fees.
2. Search for the item whose fee you want to configure.
3. In the fee list, locate the Service Charge Allowed column.
4. Toggle the button to Service Charge NOT Allowed for fees that should never have a margin applied.

Changes are saved immediately — no separate Save button is needed.

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Interaction with Item-Level Flags

The fee-level flags work alongside item-level flags:

Check	Level	Effect
Item → Discount Allowed	Item	Blocks discount for all fees of that item
Fee → Discounts Allowed	Fee	Blocks discount for this specific fee only
Item → Margin Not Allowed	Item	Blocks service charge for all fees of that item
Fee → Service Charge Allowed = OFF	Fee	Blocks service charge for this specific fee only

If any of the applicable flags blocks the calculation, the value is set to zero.

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