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

• A charge type must have been entered in the Purchase Charge Type window.
• A purchase order header must have been entered in Purchase Order.
• If the charges should be connected to a specific order line, a purchase order line must have been entered in Purchase Order.

System Effects

• Charges defined on the Supplier/Purchase/Charges tab will be retrieved by default. Charges entered manually will be retrieved from the Purchase Charge Type window.
• A charge line is entered and connected to a purchase order. The Charges check box in the lower section in Purchase Order/Part Order Lines and Purchase Order/No Part Order Lines is automatically selected when a charge has been saved.
• When an incoming supplier invoice with charges has been entered and saved in Manual Supplier Invoice window, postings are created for the charges. This means that postings are created for the credit posting type IP1 (Supplier Debts, Invoice) and the debit posting types M65 (Purchase Charges, Non-Inventory Parts) and M187 (Purchase Charges, Inventory Parts). If tax is used, postings will also be created for the debit posting IP3 (TAX Received, Invoice).
• If the Use Price Incl Tax check box is selected, the Charge Price/Curr, Charge Price/Charge Curr and Charge Price/Base fields are non editable and the charge price is calculated based on the charge price including tax value and the connected tax codes. The Charge Price Incl Tax/Curr, Charge Price Incl Tax/Base and Charge Price Incl Tax/Charge Curr fields are editable.
• If the Use Price Incl Tax check box is cleared, the Charge Price Incl Tax/Curr, Charge Price Incl Tax/Base and Charge Price Incl Tax/Charge Curr fields are non editable and the price including tax is calculated based on the value entered for the charge price and the connected tax codes. The Charge Price/Curr, Charge Price/Base and Charge Price/Charge Curr fields are editable.
   
• If the Unit Charge check box is selected, the charge amount will be dependent on the part quantity on the purchase order line.
• If charge % is used and if the charge is neither distributed nor connected to a purchase order line, then the charge amount is calculated by taking the percentage of the total net amount of purchase order lines.
• If charge % is used and the charge is distributed, then the charge amount is calculated by taking the percentage of the sum of the total net amount and the amounts of the distributed charges with a lower charge level.
• If charge % is used and the charge is connected to a purchase order line, then the charge amount is calculated by taking the percentage of the sum of the total net amount and the amounts of charges connected to the same purchase order line with a lower charge level.
• If the Intrastat Exempt check box is selected, the charge will be excluded from Intrastat reports.

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.