Overview: Surcharges
The system supports two different types of surcharges: vendor and customer.
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Vendor Surcharges
If your vendors are adding energy and other surcharges to your invoices, Use landed you can have the system add these surcharges to your purchase orders and calculate the amount owed. You can also include the surcharge in the actual cost of the item.
Purchasing
First you need to set up codes in the Surcharge Codes Maintenance (TSCM) program for the surcharges that your vendors use. Vendor surcharges use only the code and description you enter; the other fields apply to surcharges on items you sell. Surcharge amounts and percentages on items you buy are specified in the Vendor Price Maintenance (VMM) program.
Once surcharge codes and descriptions are established, you can enter up to four surcharges for an item and vendor in Vendor Price Maintenance (VMM). The surcharge can be a flat amount per unit or a percent of the unit cost. You also indicate whether to include the surcharge in the actual cost of the item. However, including surcharges in the item's actual cost requires that you select the Update average/actual costs? option in the System Options Maintenance (XM) program (Inventory Control Options).
The PO Maintenance (VOE) program displays the surcharges for the item and adds the total estimated surcharge to the total PO cost. The total estimated surcharge prints on the purchase order. You have the option of also printing the surcharges for the item if you select the Print surcharge detail? program option in the PO Print (VOP) program.
Accounts Payable
The AP Invoice Entry (NE) program displays the surcharges for an item and the calculated amounts based on the quantity paid. The AP clerk can change these surcharges if necessary.
If you selected the Update average/actual costs? option in the System Options Maintenance (XM) program (Inventory Control Options) and the Include in actual? field (in Vendor Price Maintenance) for a surcharge, the system updates the item's actual cost when you run the AP Invoice Register.
The AP clerk can also enter new surcharges for an item. However, new surcharges will not be included in the item's actual cost.
Customer Surcharges
You can link surcharges to items you sell and have the system calculate the amount based on a percent of the item's unit price or cost and/or a set amount per quantity ordered, the item's weight, or per line Surcharges display when you enter an order for the item. For variable surcharges, you can have the system recalculate the amount when you invoice.
Activate
If you want to use the surcharge feature for sales orders, you must select the Customer surcharges active? option in the System Options Maintenance (XM) program (Order Processing Options).
Set Up Hierarchy
You need to set up a surcharge hierarchy in the Price Hierarchy Maintenance (PHM) program to reflect how you assign surcharges. Think of a hierarchy as a set of rules that the system uses to determine who pays how much for which items. Your hierarchy may be by item, product class, product subclass, or item price class. It could be by customer, customer type, or customer price class. It can be a combination of item and customer types.
Create Surcharge Codes
Before you can enter surcharge records, you need to set up codes in the Surcharge Codes Maintenance (TSCM) program for the surcharges that you will use for your customers. For each code, you indicate whether the:
Surcharge is variable and needs to be recalculated during invoicing.
Amount is applied per unit order, per weight of the unit of measure, or per line.
Percent is based on the item's standard unit cost or its selling price per unit.
Surcharge only applies to split cartons.
Enter Surcharges
You enter surcharge records for each level of your hierarchy in the Price-Contract Maintenance (PCM) program. If you hierarchy is by item, you need to enter a record for each item that has a surcharge.
You can select up to six surcharge codes per record. Each surcharge can be based on a percent and/or amount. The code determines whether the percent is based on the item's price or cost. The code also determines whether the amount is per unit ordered, weight, or line.
Display or Change Surcharges
When you enter a sales order or quote for the item with the Sales Order Maintenance (OE), One-Step Invoice Entry (RE), or EDI/Sales Quote Maintenance (QOE) program, you can click a Surcharge button on a line to display the surcharges for that item. You can also display surcharges with the Sales Shipment Confirmation (OC) program.
You can change surcharges before you confirm shipment. However, you cannot change a surcharge that is variable because it will be recalculated during invoicing. Also the EDI/Sales Quote Maintenance (QOE) program does not allow you to change surcharges after you transfer a quote or EDI order to a sales order.
Print Surcharges
You can print estimated surcharges on acknowledgments by selecting the Print estimated surcharge detail? program option in the Acknowledgment Print (OPS) and Quote Acknowledge Print (QPS) programs.
The final surcharge total prints on the AR Invoice Register and on the invoice. If you select the Print surcharge detail? program option in the Invoice Print (RP) program, surcharges print for each item on the invoice.
Split Carton Fees
A split carton fee is a surcharge that you asses when the customer orders more or less than your sales unit of measure or units per pack. To use this feature, you need to set up:
A split carton fee surcharge in the Surcharge Codes Maintenance (TSCM) program for and select the Split carton charge? field.
Set the Split carton based on UOM or pack option in the System Options Maintenance (XM) program (Pricing Options) for your Pricing branch.
If you apply a split carton fee to all items in a product class, product subclass, or item price class, set up your hierarchy appropriately. If you do not already have items assigned to a product subclass or item price class, you need to assign them in the Product subclass or Price class field in the item's record in the Branch Item Maintenance (IMB) program.
Enter a record in the Price-Class Maintenance (PCM) program for each product class, subclass, price class, or item to which the fee applies and enter an amount. After you enter the first record, you can copy it to other classes.
If you selected P for the Split carton based on UOM or pack option, you need to set the Units per pack field for each item in the Branch Item Maintenance (IMB) program. This indicates what the standard purchase quantity is.
If you want to post split carton fees to a specific GL account, run Posting Criteria Maintenance (XPC), select Surcharges, and select the account you want to post to.
When a customer orders less than the sales unit of measure or fewer than a full pack, the system assigns a split carton fee charge.