In the Netherlands it is mandatory to apply the WIK (Wet Incassokosten/Law Collection Fee) on a collection. This is a fee which can be calculated based on a percentage of the outstanding balance stated on the collection letter.

The minimum fee amount is €40,- and the maximum fee is €6.775,-. However in between the fee is calculated based on a percentage:

To 2.500 -> 15%

The next 2.500 -> 10%

The next 5.000 -> 5%

The next €190.000 -> 1%

Above €200.000 -> 0.5% with a maximum of €6.775,-.

We considered using the standard functionality, however this fee is fixed. Secondly we considered to use the interest note functionality, however this is a different document than the collection letter. Thereby this functionality is working slightly different, it is calculating the percentage per range based on the total of the collection letter. So in case the collection letter value is €3.000,- (and we apply the same logic as stated above), the calculated percentage is 10% instead of 15% based on the first €2.500 and 10% over the last €500,-.