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 page.
- 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 page.
- A charge line is entered and connected to a purchase order. Label Charges Exist will be visible in
section Order Amounts.
- When an incoming supplier invoice with charges has been entered and saved in Manual Supplier Invoice
page, 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 option is enabled, 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 option is disabled, 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 option is enabled, 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 option is enabled, the charge will be excluded from Intrastat reports.