Auto charges also referred to Automatic charges, is a functionality whereby we can apply specific set of charges automatically to any Sales Order/Purchase Order.
This kind of a functionality is required when the user has to add a specific charge on all the PO/SO created.
Let’s say Loading & Unloading charges is something which we usually charge to all the vendors/customers from a specific state.
Step 1: Create Charges groups
Note: Charges groups are required only when the charges are applied to some customers/vendors but not all.
Accounts receivable –> Setup –> Charges –> Customer charges groups
Accounts receivable –> Setup –> Charges –> Item charges groups.
Procurement and sourcing –> Setup –> Charges –> Vendor charges group.
Procurement and sourcing –> Setup –> Charges –> Item charges groups
The system automatically determines the type of charge code based on the navigation of the form selected by the user.
Attach the Charges groups created above to the customers/vendors/items as required.
Define the Auto charges setup:
Accounts receivable –> Setup –> Charges –> Auto charges. or Procurement and sourcing –> Setup –> Charges –> Automatic charges.
Below is the specimen of the Auto charges form.
1. Press New to define a new auto charge.
2. In the Level field, select the level to apply the auto charge to from the following options:
- Main – Applies charges to the order header.
- Line – Applies charges to the order lines.
3. Select an account in the Account code field from the following values:
- Table – Applies charges to a specific customer or vendor.
- Group – Applies charges to a charges group.
- All – Applies charges to all customers or vendors.
4. Customer relation/Vendor relation:
- Define a specific customer/vendor for account code = Table or
- Define a customer/vendor charges group for account code = Group.
5. Item code
- Define an item. System allows selecting an item code only when level = lines at the current setup.
- Table – Applies charges to a specific item.
- Group – Applies charges to an item charges group.
- All – Applies charges to all items.
6. Item relation
- Define a specific item for Item Code = Table or
- Define an item charges group for Item code = Group.
7. Access Lines FastTab & define the charges and the charges rates, when the current auto charge is applied.
8. Currency , Define the currency for the charge.
9. Charges code , Define the code for the charge.
10. Category, specify calculation basis for the charges in this field and enter a value in the Charges value.
- Fixed – The charge is entered as a fixed amount on the line.
- Pcs. – The charge is based on the unit (eg. Rs. 2/- Per piece). These charges can be used only on order lines.
- Percent – The charge is entered as a percentage value.
- Intercompany percent – The charge is entered as a percentage on the line for intercompany orders. This option can be used only on order lines.
- External – The charge is calculated by a third-party service that is associated with one or more shipping carriers.
11. In the Charges currency code field, specify a currency for the charge to use a different currency than specified in the Currency field. This can be used if the Debit or Credit type is either Ledger account or Item for the selected charges code.
12. From amount & To amount can be used when the charges are to be applied on a slab basis. (Eg. Apply the charge only if the Order total is between Rs. 100 – 200). To define tiered charges, from amount and a to amount can be defined only if the auto charges are defined at the main level and if the category is Fixed or Percent.
13. Sales tax group, specify a sales tax group if the charge is taxable.
14. Keep check box allows to retain the charges transactions after invoicing.