WP.74: Mandatory Charge Codes

WP74

Business Benefits

Before starting up the system, there are various Charge codes that must be defined so that the system can function properly. These Charge codes relate to a variety of situations as described on the following pages.

Usage

Use this job to:

• create a list of mandatory Charges, so that the system can calculate Storage, Handling and Ancillary (Accessorial) Charges as required,
   
• assign General Ledger codes to these Charges, so that the system can automatically summarize Revenues under the correct General Ledger codes,
   
• assign Revenue Reporting codes to the Charges, so that Revenue can be categorized by type (Storage, Handling, Recouping, etc.) for each Customer on the Revenue Analysis Reports,
• assign Invoice Group codes to Charges, so that Customers may obtain separate Ancillary Charge Invoices for certain types of Charges at their discretion.

Note: For related documentation and workflows, see WP - Warehouse Profile.

Preconditions

You must have set up Measuring Units in program CR.10 [Measuring Units] or WP.71 [Measuring Units].

If you are using the Separate Invoice Arrangements feature, you must set up the Invoice Group codes in program CR.20 [Separate Invoice Arrangements].
 

You must also have created Revenue Analysis codes and General Ledger accounts in programs CR.36 [Revenue Analysis Codes] and GL.06 [Chart of Accounts].

The following is a list of Mandatory Charge codes which must be set up in the system under the Client code GEN, which will make them generally available for use by all Clients within a Warehouse.

If they are re-entered under a specific Client's code, they MUST mean the same as they do in the following explanations. The system recognizes these codes as having specific (pre-set) meanings and will react accordingly when encountering one.

AR = Accounts Receivable Control Account

This is not really a Charge record; it serves only to tell the system the General Ledger account code to use to offset the Revenue transactions generated on Invoices and recapped on the Daily Work Register.

It is important that you do not put an asterisk (*) in the General Ledger account code field.

It is not necessary to enter a Rate for this Charge because it will never be applied to anything. You do, however, need to enter a Revenue code, even though it will not be used (the system has no way of knowing at this time that it will never be used).

CP = Piece Packing (e-Commerce)

This charge will be automatically applied by the System for each single piece of stock that is packed into a Carton.

Configuration:

1. Order MUST be an e-Commerce Order.

WP.98 [System Profile - 2]:
- Field # 10 e-Commerce Active = "Y".
- Note: View On-Line for OTHER Configurations required for e-Commerce.

2. Product MUST be defined with SKU of Each or Unit.

CR.10 [Measuring Units]:
- Field # 1 Measuring Unit = "EA " or "UNT",
- Field # 3 Value = "1" and
- Field # 4 Calculate By = "U" (Units).

CR.62 [Client's Inventory Products]:
- Field # 10 = "EA " or "UNT".

3. Define Rate.

CR.22 [Storage, Handling, Other Rates]:
- Field # 1 Client Code = "GEN " or Client
- Field # 2 Charge Code = "CP"
- Note: This is a MANDATORY Charge Code from WP.74 [Mandatory Charge Codes] that will be applied automatically by the System so various values (e.g. Description) may NOT be changed.
- Note: If this Charge Code is NOT required then the Field # 21 Charge Code should be set to ZERO.
- Field # 11 Charge Type = "A" (Single Rate)
- Field $ 14 Calculate Per (UOM) = "EA" (Each)
- Field # 15 Qualifying Units = "U" (Units)
- Field # 21 Charge Rate = Anmoiunt per Each.

Processing Steps:

- Note: The following are SOME of the MAJOR Processing Steps that are required and lead to the generation and printing of an Invoice with this Charge.
- RF.01 [R.F. Menu] Wave Pick Unallocated,
- OE.20 [Confirm or Modify Shipments],
- IP.33 [Shipment Register - Generate],
- IP.90 [Register - Shipments] (Creates Charges),
- IP.32 [Accessorial Charges - Generate] and
- IP.53 [Accessorial Charges - Invoices].

CS = Case Pick WITH a Packing Slip (e-Commerce)

This charge will be automatically applied by the System for each Case of stock that is Picked for an Order that requires a Packing Slip.

Configurations:

1. Order MUST be an e-Commerce Order.

WP.98 [System Profile - 2]:
- Field # 10 e-Commerce Active = "Y".
- Note: View On-Line for OTHER Configurations required for e-Commerce.

2. Product must be defined with an Alternate Unit of Measure (e.g. a Case).

CR.62 [Measuring Units]:
- Field # 51 Pack Size > 1 (e.g. 6),
- Field # 54.1 Unit of Measure = "CS " and
- Field # 56 Report Quantity = "D" (Divide).

3. Order's PO # MUST contain "CONSUMER PO"

OE.01 [Enter Orders (Shipping)]:
- Field # 1 Client Code = "GEN " or Client
- Note: Indicates if Packing Slip is required.

4. Define rate

CR.22 [Storage, Handling, Other Rates]:
- Field # 1 Client Code = "GEN " or Client
- Field # 2 Charge Code = "CS"
- Note: This is a MANDATORY Charge Code from WP.74 [Mandatory Charge Codes] that will be applied automatically by the System so various values (e.g. Description) may NOT be changed.
- Note: If this Charge Code is NOT required then Field # 21 Charge Rate should be set to ZERO.

CR.62 [Measuring Units]:
- Field # 11 Charge Type = "A" (Single Rate)
- Field # 14 Calculate Per (UOM) = "CS" (Each)
- Field # 15 Qualifying = "U" (Units)

Processing:

- Note: The following are SOME of the MAJOR Processing Steps that are required and lead to the generation and printing of an Invoice with this Charge. RF.01[R.F. Menu] Wave Pick Unallocated,
- OE.20 [Confirm or Modify Shipments],
- IP.33 [Shipment Register - Generate],
- IP.90 [Register - Shipments] (Creates Charges),
- IP.32 [Accessorial Charges - Generate] and
- IP.53 [Accessorial Charges - Invoices].
 

CT = Carton Charge (e-Commerce)

This charge will be automatically applied by the System for EACH Carton used for Order Packing.

Configurations:

1. Order MUST be an e-Commerce Order.

WP.98 [System Profile - 2]:
- Field # 10 e-Commerce Active = "Y".
- Note: View On-Line for OTHER Configurations required for e-Commerce.

2. Stock on the Order was Packed into a Carton. Unit of Measure (e.g. a Case).

CR.73 [Carton Type Setup] and
RF.01 [R.F. Menu] Wave Pick Unallocated.

3. Define Rate.

CR.22 [Storage, Handling, Other Rates]:
- Field # 1 Client Code = "GEN " or Client
- Field # 2 Charge Code = "CT"
- Note: This is a MANDATORY Charge Code from WP.74 [Mandatory Charge Codes] that will be applied automatically by the System so various values (e.g. Description) may NOT be changed.
- Note: If this Charge Code is NOT required then Field # 21 Charge Rate should be set to ZERO.

CR.62 [Measuring Units]:
- Field # 11 Charge Type = "A" (Single Rate)
- Field # 14 Calculate Per (UOM) = "CS" (Each)
- Field # 15 Qualifying Units = "U" (Units)
- Field # 21 Charge Rate = Amount per Case.

Processing:

- Note: The following are SOME of the MAJOR Processing Steps that are required and lead to the generation and printing of an Invoice with this Charge.
- RF.01 [R.F. Menu] Wave Pick Unallocated,
- RF.01[R.F. Menu] Wave Pick Unallocated,
- OE.20 [Confirm or Modify Shipments],
- IP.33 [Shipment Register - Generate],
- IP.90 [Register - Shipments] (Creates Charges),
- IP.32 [Accessorial Charges - Generate] and
- IP.53 [Accessorial Charges - Invoices].
 

CU = Case Pick WITHOUT a Packing Slip (e-Commerce)

This charge will be automatically applied by the System for EACH Case that is Picked for an Order that does NOT require a Packing Slip.

Configurations:

1. Order MUST be an e-Commerce Order.

WP.98 [System Profile - 2]:
- Field # 10 e-Commerce Active = "Y".
- Note: View On-Line for OTHER Configurations required for e-Commerce.

2. Product must be defined with an Alternate Unit of Measure (e.g. a Case). CR.62 [Client's Inventory Products]:

- Field # 51 Pack Size > 1 (e.g. 6),
- Field # 54.1 Unit of Measure = "CS " and
- Field # 56 Report Quantity = "D" (Divide).

3. Order's PO # MUST NOT contain "CONSUMER PO"

OE.01 [Enter Orders (Shipping)]:
- Field # 12 Purchase Order
- Note: Indicates if Packing Slip is required

4. Define Rate.

CR.22 [Storage, Handling, Other Rates]:
- Field # 1 Client Code = "GEN " or Client
- Field # 2 Charge Code = "CT"
- Note: This is a MANDATORY Charge Code from WP.74 [Mandatory Charge Codes] that will be applied automatically by the System so various values (e.g. Description) may NOT be changed.
- Note: If this Charge Code is NOT required then Field # 21 Charge Rate should be set to ZERO.

CR.62 [Measuring Units]:
- Field # 11 Charge Type = "A" (Single Rate)
- Field # 14 Calculate Per (UOM) = "CS" (Each)
- Field # 15 Quanlifying Units = "U" (Units)
- Field # 21 Charge Rate = Amount per Case.

Processing:

- Note: The following are SOME of the MAJOR Processing Steps that are required and lead to the generation and printing of an Invoice with this Charge.

- RF.01[R.F. Menu] Wave Pick Unallocated,
- OE.20 [Confirm or Modify Shipments],
- IP.33 [Shipment Register - Generate],
- IP.90 [Register - Shipments] (Creates Charges),
- IP.32 [Accessorial Charges - Generate] and
- IP.53 [Accessorial Charges - Invoices].
 

HM = Outbound Handling Minimum per Order

This refers to a Charge for handling outbound shipments. At end-of-day, program IP.33 [Shipment Register - Generate] will check all outbound Handling Charges on the Order detail lines, and charge a minimum if necessary.

The charge will be accessed on every confirmed BOL if the total outbound handling charges for the entire BOL are less than the minimum amount set up in the Mandatory Charge Code "HM". Specifically, the "Total Outbound Charges" are only those charges calculated as a result of using the "Outbound Handling" charge in the job CR.63 [Product Billing Profiles] Field # 9 - Outbound Handling.

The "HM" charges will accumulate in detail with required references to the BOL and then print on periodic Accessorial Invoices in the following jobs IP.24 [Accessorials -Invoices Preview] and IP.53 [Accessorial Charges - Invoices].

In the event that the total "HM" charges are less than the defined minimum in the job CR.22 [Storage, Handling, Other Rates] Field # 12 - Minimum Charge then the system will "add" an additional amount so the total charge is equal to the minimum.

IA = Internal Transfer of Stock - Receiving Client

IB = Internal Transfer of Stock - Transferring Client

These Charges are for transferring ownership of stock between two Clients in the Warehouse.

They are applied on the Warehouse Receipt in program RE.32 [Receipt Invoices - Print] and for the BOL in program IP.33 [Shipment Register - Generate].
 

LF = Late Fee

This charge is applied to clients when there is a payment that is late. This amount is not recorded into the Accounts Receivable because it may or may not be paid by the Client.

LG = Lift Gate Services Charges

Periodically a Lift Gate device may need to be used by a Warehouse or Logistics provider to load stock onto a Carrier; e.g., for shipment.

This is a requirement for Carriers (e.g. UPS) that do not use standard equipment (e.g., a 53 ft trailer) and can not be loaded from a standard dock door. A warehouse will typically require a user to manually record a charge for each product that requires Lift Gate services.

To eliminate the time/cost required to record these charges (and ensure any/all valid charges are recorded) they may now be automatically applied by the system.

After defining this charge (in WP.74 or CR.22) activate its use at the product level with the following job CR.62 [Client's Inventory Products] and set Field 93 - Lift Gate Services to "Y".
 

MR = Bill of Lading Clerical Charge

The system recognizes this as its standard instruction on whether (and how much) to charge for producing a Bill of Lading.

It is not the same as the Withdrawal Charge. It is a single amount regardless of the size of the Bill of Lading.

This Charge will be applied against every Client if the rate is not zero, unless a Client has this code set up under his account number with a zero rate.

NR = Non-Standard Routing Charge (sometimes called "Will Call" or Pick Up).

1. Set up a Routing code NR in program CR.37 [Routing Codes].
2. If you set Field 4 (Routing Code) of program CR.38 [Carriers] to NU, routing code NR will be the default in Field 9 (Routing Code) of program OE.01 [Enter Orders (Shipping)].
3. Enter (or accept default) Routing code NR in Field 9 (Routing Code) of program OE.01 [Enter Orders (Shipping)].
4. If the Charge has a non-zero Rate attached to it, the system will assess a Charge for every Bill of Lading with a Routing code of NR in Field 9 (Routing Code) of program OE.20 [Confirm or Modify Shipments].

OA = Master Pack Picking Charge

This is an Outbound Handling charge for Picking Master Packs that is applied AUTOMATICALLY by the System.

Configurations:

1. Define a Carton.

CR.10 [Measuring Units]
- Option # 01 Measuring Units
- Field # 1 Unit = "CT"
- Field # 2 Description = "Carton"
- Field # 3 Value = 1
- Field # 4 Calculate by = "U" (Unit)
- Note: You may use an existing Unit of Measurement (UOM) as long as Fields 3 and 4 have the above values.

2. Set Product's Pack Size for the Carton.
 

CR.62 [Client's Inventory Products]
- Field # 10 SKU = "EA " or "UNT".
- Note: Product's quantity tracked by EACHES.
- Field # 54 Pack Size > 1 (e.g. 6 per Carton)
- Field # 54.1 UOM for Pack Size = "CT"
- Field # 56 Calculation Method for Quantity of UOM for Pack Size = "D" (Divide).

Note: System will calculate the Product's Carton quantity by dividing the Product's EACH quantity (e.g. 72) by the Product's Pack Size (e.g. 6). In this example there would be 12 Cartons (i.e. 72/6).

3. Define the Rate.

CR.22 [Storage, Handling, Other Rates]
- Field # 1 Client = "GEN " or Client Code
- Note: Clients are defined in CR.06 [Client Names and Addresses]
- Field # 2 Charge Code = "OA"
- Note: This is a MANDATORY Charge Code from WP.74 [Mandatory Charge Codes] that will be applied automatically by the System so various values (e.g. Description) may NOT be changed.
- Field # 11 Charge Type = "A" (Single Rate)
- Field # 14 Calculate Per = "CT" (Carton)
- Field # 15 Qualifying Units = "U" (Units)

Where and How Charge is Displayed and Calculated:

1. IP.53 [Accessorial Charges - Invoices]:

- System will SUMMARIZE "OA" Charge by Product and Order per Invoice.
 

2. Example:

- OA Rate = $0.22 per Carton
- Product: ABC with Pack Size = 6 EA/CT
- Order: 406796
- Line 001: Product ABC. Quantity = 72 EA
- Line 007: Product ABC. Quantity = 42 EA
- Line 018: Product ABC. Quantity = 11 EA
- Line 023: Product ABC. Quantity = 40 EA
- Total Product ABC on Order = 165 EA
 

3. Calculations:

- Number of FULL Cartons:
= 27 (i.e. 165 EA / 6 per CT = 27.5)
Note: System ALWAYS rounds DOWN to Full Cartons
- Charge:
= $5.94 (i.e. $0.22 x 27 Cartons).
 

OB = Inner Carton Picking Charge

This is an Outbound Handling charge for Picking Inner Cartons.

Configurations:

1. Define a Carton.

CR.10 [Measuring Units]:
- Option # 01 Measuring Units
- Field # 1 Unit = "CT"
- Field # 2 Description = "Carton"
- Field # 3 Value = 1
- Field # 4 Calculate by = "U" (Unit)
- Note: You may use an existing Unit of Measurement (UOM) as long as Fields 3 and 4 have the above values.

2. Set Product's Pack Size for the Carton.

CR.62 [Client's Inventory Products]: - Field # 10 SKU = "EA" or "UNT"
- Note: Product's quantity tracked by EACHES.
- Field # 54 Pack Size > 1 (e.g. 6 per Carton)
- Field # 54.1 UOM for Pack Size = "CT"
- Field # 56 Calculation Method for Quantity of UOM for Pack Size = "D" (Divide).
- Note: System will calculate the Product's Carton quantity by dividing the Product's EACH quantity (e.g. 72) by the Product's Pack Size (e.g. 6). In this example there would be 12 Cartons (i.e. 72/6).

3. Define the Rate.

CR.22 [Storage, Handling, Other Rates]:
- Field # 1 Client = "GEN " or Client Code
Note: Clients are defined in CR.06 [Client Names and Addresses].
- Field # 2 Charge Code = "OB"
- Note: This is a MANDATORY Charge Code from WP.74 [Mandatory Charge Codes] that will be applied automatically by the System so various values (e.g. Description) may NOT be changed.
- Field # 11 Charge Type = "A" (Single Rate)
- Field # 14 Calculate Per = "EA" (Carton)
- Field # 15 Qualifying Units = "U" (Units)

Where and How Charge is Displayed and Calculated:

1. IP.53 [Accessorial Charges - Invoices]:

- System will SUMMARIZE "OB" Charge by Product and Order per Invoice.

2. Example:

- OB Rate = $0.18 per Inner Pack
- Product: ABC with Pack Size = 6 EA/CT
- Order: 406796
- Line 001: Product ABC. Quantity = 72 EA
- Line 007: Product ABC. Quantity = 42 EA
- Line 018: Product ABC. Quantity = 11 EA
- Line 023: Product ABC. Quantity = 40 EA
- Total Product ABC on Order = 165 EA
 

3. Calculations:

- Number of Inner Packs:
= 3 (i.e. Remainder (165 EA / 6 per CT))
Note: 165/6 = 27.5 or 27 CT & 3 EA - Charge:
= $0.54 (i.e. $0.18 x 3 Inner Packs).

 

OC = Pallet Charge

This is an Outbound Handling charge for Products that are ALREADY palletized.

Configurations:

1. Define a Pallet.

CR.10 [Measuring Units]:
- Option # 01 Measuring Units
- Field # 1 Unit = "PLT"
- Field # 2 Description = "Pallet"
- Field # 3 Value = 1 (Note: NOT Used. Any Value)
- Field # 4 Calculate by = "P" (Pallet)
- Note: You may use an existing Unit of Measurement (UOM) as long as Field 4 has the above value.

OD = Label Charge

This is a Labelling charge that is applied against the Total Quantities from the following Charges:

- OA = Master Pack Picking Charge,
- OB = Inner Pack Picking Charge and
- OC = Pallet Charge.

RH = Minimum Handling Invoice Amount

The system uses the Minimum figure in this Master Charge record to determine if the computed total of all Handling Charges is less than the agreed Minimum. If it is, an extra Billing line for the difference is added to the Client Invoice.

RF = Receipt Invoice Document Fee

The system recognizes this as its standard instruction on whether (and how much) to automatically charge for producing a Receipt Invoice.

charge is a single amount regardless of the size of the Receipt.

This Charge will be applied against every Client if the rate is not zero, unless a Client has this code set up under their account number with a zero rate.

In the event that the Invoice contains MULTIPLE Receipts then the system will only apply this charge once against the single Invoice (and NOT for EACH Receipt).

Note: Users may view the fact that the charge has been attached by performing a review of Accessorial Charges (i.e. via the "RA" option from the Detail screen) of the RE.31 [Receipt Invoices] job option.

RM = Minimum Recurring Storage Invoice Amount

The system uses the Minimum figure in the Master Charge record to determine if the computed total of all Recurring Charges is less than the agreed Minimum. If it is, an extra Billing line for the difference is added to the Client Invoice.

RN = Minimum Recurring Storage Charge Per Lot (or Billing Line on the Invoice)

The system uses the figure entered in the Minimum field of the Charge Master record to compare it to the extended total on each Billing line on the Invoice. If the extension is less, the system increases it to the figure contained here.

The General Ledger code specified here will be credited with all Revenue calculated on Recurring Storage, regardless of the General Ledger code you may have entered in each Client's specific Charge record (if Field 25 (Override G/L,Revenue Reporting Codes) in program WP.92 [Invoicing Profiles] has been set to Y).

This has been done so that it is not necessary to set up and maintain a separate Charge record for Storage and Renewal of Storage, since in most cases the rates are the same and only the General Ledger account and Revenue Reporting code are different. This allows you to use the Storage Charge code for Recurring Storage when setting up Products in program OR.20 [Lots - Maintain / Adjust].

RO = Rush Order Charge

This applies to Products on Orders identified as Rush in Field 28 (Rush Order) of program OE.01 [Enter Orders (Shipping)] or OE.21 [Enter Shipped Orders].

RS = Minimum Storage Invoice Amount

The system uses the Minimum figure in this Master Charge record to determine if the computed total of all Storage Charges is less than the agreed Minimum. If it is, an extra Billing line for the difference is added to the Client Invoice.

RT = Minimum Receipt Invoice Total

The system looks at the computed total of each Receiving Invoice. If the total of the Storage and Handling Charges is less than the Minimum amount entered in the Charge Master record, the system will compute the difference and bill it on the last line of the Invoice. The amount added to the Invoice will be added to the Handling Revenue.

SP = Stencilling Charge - Full Pallet

SU = Stencilling Charge - Individual Unit

The SP Stencilling Charge will be applied for every full Pallet that is shipped, according to the Pallet configuration in program CR.62 [Client's Inventory Products].

The SU Stencilling Charge will be applied for every individual Unit remaining after the number of full Pallets is calculated. For example,

CR.62 Pallet configuration = 35
Order quantity = 50
Bill of Lading shows 1 Pallet Stencil required
+ 15 Unit Stencils required

TC = Take Code Charge

TS = Take Unit ID Charge

TW = Take Weight Charge

The TC, TS, and TW codes operate identically. Only the printed message they trigger on the Bill of Lading is different.

If one of these codes is entered into the Action Codes Field (17) of an Inventory Master record (in program CR.62 [Client's Inventory Products] or OR.20 [Lots - Maintain / Adjust]), the Bill of Lading will print a Take Message following the Item. The system will then compute a Billing Charge and pass it to the Ancillary (Accessorial) Collector file for automatic invoicing at the end of the Period.

V# = VAT (Value Added Tax, # indicates if more VAT's are needed. V0 and V1 are pre-set)

This is only applicable to European Common Market Warehouses. It represents the rate of Tax to be added to each Charge applied to a Client. This code must be entered in Field 20 of this program for all Charges to which VAT applies. Programmer involvement is required for this code.

WC = Withdrawal Charge

This Charge record is used by the system to automatically assess Charges against the Bills of Lading for every Client. It will always be
assessed if this Charge record has a non-zero Rate. If some Clients do not have WC Charges or if they are at a different rate than this standard one, a separate WC Charge Master record should be set up under each Client's code with their Rate. The system will then use the Client's own Charge Rate.

In general, the WC Charge is calculated per Lot (or Shipment line) on the Bill of Lading, then totalled into a single Charge figure and sent to
the Ancillary (Accessorial) Invoice at Period end.

Note: Once all of these Restricted Meaning codes have been set up under GEN, any Client who varies from the standard arrangement may have a special quotation set up under his own Client code. The system always looks for a Client reference first before trying to apply the general rule.

If a Client is exempt from any of the general Charges, simply enter a zero in the Rate and Minimum fields and no Charge will ever be applied.

Subsequent Actions

Additional Charge codes can be set up using this program or program CR.22 [Storage, Handling, Other Rates].

Program Fields and Functions

To review a text version of the field help, click here. Click the button (or press F5) to invoke field help at any time from within the job panel itself.