Enter Purchase Charge Type

Explanation

Use this activity to enter purchase charge types. The information entered here can be seen as default values, i.e., you have the possibility to alter these values at a later time when entering the purchase order.

However, before entering the different charge types, you need to enter the purchase charge groups or use groups that already exist. A charge group is used for putting purchase charge types into different categories and is entered in the Purchase Charge Type window.

In this window you should enter the purchase charge types and connect each one to the appropriate purchase charge group. For instance, this could mean that you have a charge group called 'Freight' with different forwarding agents (charge types) connected to it. It is then possible to use the charge type on the charge line on a purchase order. There you have the alternative to connect the charge type to a specific purchase order line or to distribute it to all lines.

If the charge is considered a unit charge, the charge does not get distributed and therefore this value must be kept null.

If you want the charge to be described in a specific language on the purchase order report, you can enter the proper language code and description in the lower part of this tab window.

It is also possible to connect purchase charge types to a supplier or to a supplier and a specific purchase part. By connecting a charge type to the specific supplier, you will not have to enter a new charge line each time a purchase order is created. Charges are also considered when matching invoices.

Note that the information entered here is unique per site, meaning that each site must have its own charges entered. In accounting, however, it is only possible to enter rule postings per company, not per site.

Example: If Company A has entered the charge type Freight for Site 1, Site 2, etc., the charge type postings will be controlled in one common way for all sites. If Company A instead has entered charge type Freight1 for Site 1and Freight2 for Site 2, the charge type postings can be controlled in different ways for the different sites. As mentioned above, if Company A has entered charge type Freight, and Company B has also entered a charge type called Freight, the charge type postings are independently controlled from each other.

Prerequisites

• A purchase charge group must have been entered in the Procurement Basic Data/Purchase Charge Group tab.

System Effects

• A purchase charge type is entered in the system and connected to a specific charge group.
• The Taxable check box will be selected by default. If the company tax regime is VAT, the default tax code will be retrieved from the Company/General Data for Distribution tab. Note: A tax code must be specified if the company tax regime is VAT.
• If the Use Price Incl Tax check box is selected, then only the Charge Price Including Tax field is editable and the Charge Price field is not editable. The charge price is calculated based on the value entered for the charge price including tax and the tax code. If the Use Price Incl Tax check box is cleared, then only the Charge Price field is editable and the Charge Price Including Tax field is not editable. The charge price including tax is calculated based on the value entered for the charge price and the tax code. The default value is fetched from the site connected to the charge type.
• If a value is specified in the Invoicing Supplier field, a supplier invoice will be generated taking into consideration information of the invoicing supplier and not the ordering supplier, e.g., identity, tax code.
• If the Unit Charge check box is selected, the charge amount will be dependent on the part quantity on the purchase order line.

Window

Purchase Charge Type

Related Window Descriptions

Purchase Charge Type
Procurement Basic Data

Procedure

1. Open the Purchase Charge Type window, and create a new record.
2. Enter the short code for the charge type in the Charge Type field.
3. Enter the description of the charge type.
4. Specify site.
5. In the General Tab, enter the charge group by using the List of Values or enter the proper short code in the corresponding fields.
6. If the charge is going to be invoiced by another supplier, enter the short code in the Invoicing Supplier field by using the List of Values. You can also leave it empty, which indicates that the supplier on the purchase order also will invoice the charge.
7. Enter the charge amount and the unit of measure to be used in the charge lines. If you do not want a default value on the charge line, leave the charge amount field empty.
8. Optionally, you can choose different ways of distributing the charges  by using the drop-down menu in the Distribute Charge By field.
9. If VAT is charged for the charge type, specify a tax code in the Tax Code field. You can do this either by entering a short code or by selecting a value from the List of Values.
10. Select the Unit Charge check box for charges to be considered separately per part. This can be changed per specific purchase order if required.
11. If you want the charges to be printed on the purchase order report, select the Print Charge Amount check box.
12. Select the Intrastat Exempt check box if you wish to exclude this charge from Intrastat reports.
13. Save the record.

The following steps are optional:

1. In the Descriptions tab, enter the language code in the Language Code field by using the List of Values or enter the proper short code.
2. In the Description field, enter the language chosen in the Language Code field.
3. Save the record.