Purchase Additional Charges and Landed Cost FAQ

Percent

An additional charge is created by multiplying the cost times the additional percentage regardless of whether it originates from a purchase order or a shipment.

Example A 10% additional charge is assigned to a purchase order. The purchase order cost (before the additional charge) is $1,000. The purchase order additional charge is $100, so the total purchase order is $1,100. A partial receipt of products totaling $500 is made, so additional charges of $50 ($500 x 10%) are added to the landed cost.

Per Unit

An additional charge is created by multiplying the quantity times the additional cost per unit regardless of whether it originates from a purchase order or a shipment.

Note The units of measure on each line might be different units of measure. So, if the additional charge is $1 per unit, then 5 eaches and 5 cases is $10 of additional charges

Example A $10 per unit additional charge is assigned to a purchase order that has 4 lines and 25 total units. The purchase order cost (before the additional charge) is $1,000. The purchase order additional charge is $250 (25 x $10 per unit), so the total purchase order is $1,250. A partial receipt of product units totaling 10 is made, so additional charges of $100 (10 units x $10) are added to the landed cost.

Per Unit Weight

An additional charge is created by multiplying the total weight times the additional cost per weight unit regardless of whether it originates from a purchase order or a shipment.

Example A $10 per lb. additional charge is assigned to a purchase order that has 3 lines and 50 lbs. The purchase order cost (before the additional charge) is $1,000. The purchase order additional charge is $500 (50 lbs. x $10 per lb.), so the total purchase order is $1,500. A partial receipt of product weight totaling 20 lbs. is made, so additional charges of $200 (20 lbs. x $10 per lb.) are added to the landed cost.

Per Receipt

An additional charge is created each time there is another receipt if it originates from a purchase order; it is then distributed according to the Distribute by option selected.

Example A $100 per receipt additional charge (distribute by cost) is assigned to a purchase order that has 5 lines. The purchase order cost (before the additional charge) is $1,000. The purchase order additional charge is $100 (assumes that the purchase order will be received in full) so the total purchase order is $1,100. A partial receipt of 3 line items is made, so additional charges of $100 are distributed by cost to the landed cost of the three line items. Another partial receipt of two line items is made, so another additional charge of $100 is distributed by cost to the landed cost of the two line items.

Per Receipt

An additional charge is created for every receipt of a container on a shipment. It is then distributed according to the Distribute by option selected.

Note The Per Receipt amount type is generally not used for shipment additional charges.

Example Two purchase orders are created and placed on the same shipment, which is comprised of three containers. A per receipt additional charge of $100 (distribute by cost) is set up for the shipment. The first container is received and $100 is distributed (by cost) to the products in the first container. The second container is received and another $100 is distributed (by cost) to the products in the second container. The third container is received and another $100 is distributed (by cost) to the products in the third container.

First Receipt

An additional charge is created only the first time there is a receipt if it originates from a purchase order; it is then distributed according to the Distribute by option selected.

Example A $100 first receipt additional charge (distribute by cost) is assigned to a purchase order that has five lines. The purchase order cost (before the additional charge) is $1,000. The purchase order additional charge is $100 so the total purchase order is $1,100. A first receipt of three line items is made, so additional charges of $100 are distributed (by cost) to the landed cost of the three line items. Another partial receipt of two line items is made, but no further additional charges are distributed.

First Receipt

You cannot use additional charges with this amount type for shipments.

Total Receipt

An additional charge is created and then pro-rated upon receipt if it originates from a purchase order; it is then distributed according to the Distribute by option selected.

Example A $100 total receipt additional charge (distribute by cost) is assigned to a purchase order that has five lines. The purchase order cost (before the additional charge) is $1,000. The purchase order additional charge is $100 so the total purchase order is $1,100. The first receipt is for two line items that total $200, so additional charges of $20 ($200 / $1,000 x $100) are distributed (by cost) to the landed cost of the two line items. Another partial receipt of two line items that total $500 is made, so additional charges of $50 ($500 / $1,000 x $100) are distributed (by cost) to the landed cost of those two line items.

Note If the purchase order is not fully received, then it is possible that the full amount of the total receipt additional charge may not be used (depending on the Distribute by option and its related data).

Total Receipt

An additional charge is created for the total of a shipment. It is then distributed regardless of the container according to the Distribute by option selected.

Example Two purchase orders are created and placed on the same shipment, which is comprised of three containers and totals $1,000. A total receipt additional charge of $100 (distribute by cost) is set up for the shipment. The first container that totals $300 is received and $30 ($300 / $1,000 x $100) is distributed (by cost) to the products in the first container. The second container that totals $500 is received and $50 ($500 / $1,000 x $100) is distributed (by cost) to the products in the second container.