Purchase charge groups are used to categorize different purchase charge types, such as freight, custom, insurance, and service fees. This means that, before you enter a charge type, you need to either enter a charge group or use an existing one. The information entered in Purchase Charge Groups and Purchase Charge pages is used on the purchase order. In the lower part of the page, you can enter some optional information to be used for entering the description of the charge group in different languages.
Each charge group is defined with a level. The charge level is used when
calculating the net amounts of charges with a charge percentage which is line
connected or distributed. Net amounts of charges with a lesser charge level
are included in the calculation basis of a percentage charge with a greater
charge level. For the calculation of landed costs, the purchase price is used
as the basis of the calculation and then the charge group with level 0 is added
to the calculation followed by the charge group level 1 etc. A partial sum is
calculated after each level.
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As a result of this activity a purchase charge group is created.