Add Purchase Charges/Landed Costs

Explanation

Charges are entered on the purchase order as a charge line. They can be used for both part order lines and no-part order lines.

Charges can either be invoiced by the same supplier that is delivering the ordered goods or by another supplier (such as a supplier of transport and logistics, e.g., a forwarding agent). You also have the option to consider charges separately as unit charges and to distribute the charges in different ways. You can have no distribution of charges, the charges connected to a specific purchase order line, the charges distributed evenly to all purchase order lines, or the charges distributed with consideration to amount, weight or volume.  

Prerequisites

System Effects

Window

Purchase Order

Related Window Descriptions

Purchase Order
Purchase Order/Charges

Procedure

  1. In the Purchase Order window, click the Charges tab, and then select New.
  2. In the Charge Type field, specify the charge type by using the List of Values or by entering the proper short code. Depending on how the charge type is defined, values will automatically be entered in different columns.
  3. The Charge Currency field retrieves the currency code used in the header. This can be altered if the purchase order header has the Planned or Released status.
  4. The charge price or the charge percentage is retrieved from the values entered in the purchase charge type, but can be changed if required.
  5. If you want to enter or alter the charge price, you can do this in either the Charge Price/Charge Curr column or the Charge Price/Base column. The amount will be automatically updated in the other columns.
  6. If you want the charge to be distributed for all purchase order lines, indicate your choice in the Distribute Charge By column. If the charge is considered a unit charge, the charge does not get distributed and therefore this value must be kept null.
  7. If you want the charge to be connected to a specific purchase order line, indicate this in the Connect to Line No and Connect to Rel No columns.
  8. Optionally, you can alter the values in the Invoicing Supplier, Charged Qty and Price U/M columns.
  9. The Unit Charge and Intrastat Exempt check boxes are either selected or cleared based on the default value for the charge type. The value can be changed. If the charge is a unit charge, then the charge line should be connected to a purchase order line.
  10. Save when completed.