Pack size charges are used for giving the customer an extra discount (negative charge) or an additional fee (positive charge) related to the costs of handling the unit they have ordered.
This is related to the specific unit the customer has ordered, and not to the specific part as other discounts are.
This discount or the fee is calculated at the moment of entering the customer order line or the sales quotation line. It is then automatically added as a charge line. For a pack size charge line to get created for a customer order or a sales quotation the customer should have the Receive Pack Size Charge/ Discount option enabled.
This pack size charge discount or fee is given by the supplier to the customer. Customers must be activated in order to calculate the discount or the fee on the order or quotation line.
The handling of different units when the customer places a customer order is managed with the multiple unit of measure functionality, e.g. the customer can order a part in pieces, boxes of ten, boxes of twenty and pallets of hundred. To use the pack size charges in a sales quotation or a customer order the inventory part to be used must be connected to a relevant input UoM group.
It is usually easier, therefore cheaper, to handle a complete pallet or a box than a single stock keeping unit, which may need to be taken from a pallet in inventory and repacked before proceeding with the delivery of the order. Since the handling charge per unit for a whole pallet of an item is lesser than the handling charge of an individual unit, a price concession should be given when pricing a pallet of unit. Similarly, there can be an additional charge (fee) when pricing a single unit.
Pack Size Charge Price List
In the pack size price list, the conditions that should be met in order for the customer to receive a discount or alternatively the additional fee, are defined depending on the input unit used when ordering the parts.
A charge type is defined on the pack size price list, which is used when adding the discounts or additional fees, calculated based on the ordered parts and units, to the customer order. A discount percentage or a value will be specified for each available input unit of measure. If a discount should be given it must be specified with a a negative percentage or a negative value. Similarly if a positive value is given as a discount percentage or a value, it indicates that it will be an additional charge.
Charge Type Category
The charge type category can be of three types, Pack Size, Freight
or Other. Any charge type should belong to one of these categories. However
if a charge type is to be connected to a pack size charge list, it should be
of the pack size charge type category. When a charge type is of a pack size
it has unit charge feature enabled, which means the charge is calculated per
unit. However, when working with pack size charges, the unit charge attribute
does not refer to the sales quantity but to the quantity indicated
using the input unit of measure.
If the charge type category is given as pack size, a tax code having the tax percentage as zero, must be specified for that charge type. The reason for this is that the pack size charge is not really a charge but a way to increase or decrease the discount on the sales price the customer is receiving.
If a customer is given a pack size discount and a tax is also applied on it, the customer actually gets a higher discount than what is actually deserved.
Input UoM Group
A default value can be set for an input UoM group. The default value appears automatically in the order line or in the quotation line, but it can be modified manually.
Pack Size Charges in the Sales Process
When a sales quotation line or a customer order line is entered the user can select any available input UoM as specified in the input UoM group attached to the inventory part. If an input UoM group is attached this is indicated by a option on the line. It is then possible to enter the required input quantity for the line. Based on the input UoM and the input quantity, the sales quantity will automatically get updated in the quotation line or the in order line. Once the line is saved a pack size charge line will get created. If the input quantity is changed in the order line or the quotation line, the charge line will change appropriately. If the sales quantity value is changed the pack size charge line will get removed.
However the above will be valid for sales quotations created for existing customers only and not for prospective customers.
Pack Size Charges and Partial Deliveries
As pack size charge is a unit based charge type, the customer should receive pack size charges or discounts for the delivered parts and not for the number of parts specified in the customer order.
Cancelation
Since it is not possible to modify a pack size charge line, it is not required to delete the charge line first before canceling a order line or a quotation line. The order line or the quotation line can be canceled and the relevant charge lines will get deleted automatically.