Service Charges

You use this program to define non-merchandise charges that you can include on a customer's sales order.

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Field Description
File  
Save

This saves the details you entered or changed.
Save and close

This saves the details you entered or changed and returns to the previous screen.
Edit  
New Select this to add a new charge code.
Delete Select this to delete the charge code currently displayed.
Function  
Attached to a stock code

Select this to assign service charges to a specific stock item.

These charge lines are automatically calculated and inserted into the order for that particular stock item in the Sales Order Entry program.

If you want to include returnable items associated with a stocked item in a Supply Chain Transfer, then you must enable the option: Include returnable item in SCT (Sales Orders Setup).

You can add a maximum of 20 service charges against each stocked item when you attach a service charge to a specific stock item.
Miscellaneous charge type

Select this to define coded service charges that you can insert into an order when processing a miscellaneous charge line using the Sales Order Entry program.

Miscellaneous charge types are also used for defining minimum order charges (see Customers - General Details - Minimum order rules).
Stock code

Indicate the stock code to which you want to allocate the service charge(s).

This only applies to maintaining a service charge attached to a stock code.
Service charge

Indicate the code for the service charge you want to add or maintain. This only applies when maintaining a miscellaneous service charge.

This code is retrieved when processing a miscellaneous charge line during sales order entry or Part billings.

Service charges assigned to a stock code are automatically calculated and inserted against the order as miscellaneous charge lines.

Service Charge Maintenance

Field Description
Service charge

This indicates the code for the charge being maintained.
Calculation type If you selected to maintain a Miscellaneous service charge, then you can only select the calculation types Fixed value, User defined, Labor, Minimum order value or Returnable item.

The calculation types available depend on whether the service charge is a miscellaneous charge type or it is attached to a stock code.

OptionDescription
Comment

Select this to assign a comment line to the charge code.

When processing an order for this stocked item the line is inserted as a comment entry against the order.

Fixed percent

Select this to assign a fixed percentage amount to the charge code.

This enables you to base the charge on a fixed percentage of the stock item's line value entered during sales order entry.

The charge is applied after any line discounts or tax has been calculated.

Fixed value

Select this to assign a fixed charge amount to the miscellaneous charge code.

During sales order entry, the fixed charge value is displayed as the default entry that will be inserted against the order. You can override this amount.

Mass

Select this to assign a mass to the charge code.

During sales order entry the order quantity of the stock item (converted to the stocking quantity) is multiplied by the mass and then by the unit price to determine the value of the charge line.

Minimum quantity

Select this to assign a charge to order lines, for this stock item, where the quantity ordered is less than or equal to the quantity entered in the Minimum quantity field below. You enter this charge in the Unit price field below.

During sales order entry the order quantity of the stock item is multiplied by the value in the Unit price field to determine the total value of the charge line.

You would typically select this if you apply a surcharge (e.g. a handling fee), for small order quantities.

Order quantity

Select this to assign an order quantity to the charge code.

During sales order entry the order quantity of the stock item is multiplied by the unit price to determine the value of the charge line.

If you want these service charges to be re-calculated when quantities on Dispatch notes are changed (using the Dispatch Note Review program) then you must set the Miscellaneous charge processing option to Include miscellaneous on all dispatch notes (Dispatch Notes Setup).

Quantity to ship

Select this to assign a quantity to ship to the charge code.

During sales order entry the shipping quantity of the stock item is multiplied by the unit price to determine the value of the charge line.

Returnable item

Select this to assign a charge for a returnable item.

A returnable item is usually sold together with a stock item, but is returnable (e.g. a re-usable container, crate or pallet). A deposit may have been paid on the returnable item and it may be returned for credit.

A returnable item charge can be defined as a miscellaneous service charge or as a service charge attached to a stock code.

If the returnable item service charge is attached to a stock item, then during order entry, the ship quantity of the stock item is multiplied by the value in the Unit price field to determine the total value of the charge line. You would typically define a returnable item service charge attached to a stock item if the stock item and the returnable item cannot be sold separately. For example, you could not sell a bottle of cold drink without the bottle. If the sales order line or the dispatch note line for the stock item is cancelled, then the service charge line for the returnable item is automatically cancelled.

If the returnable item charge is defined as a miscellaneous charge, then during order entry, the quantity you enter (adjusted by the quantity factor defined against the charge) is multiplied by the Unit price to determine the total value of the charge line. You would typically define a returnable item charge as a miscellaneous charge if the stock item and the returnable item can be sold separately. For example, you could sell a crate of cold drink bottles, but you could also sell the bottles loosely (without the crate).

This option is only enabled if you defined a Returnable item warehouse (Sales Orders Setup).

When you define a returnable item service charge, you must enter a quantify factor.

Stocking qty to order

Select this to assign a stocking quantity to order to the charge code.

During sales order entry the order quantity (converted to the stocking quantity) of the stock item is multiplied by the unit price to determine the value of the charge line.

Labor

Select this to assign a labor charge amount to the miscellaneous charge code.

Labor service charges can only be processed using the Part Billings program. The Part Billings program creates the miscellaneous sales order charge line for the labor charge. Refer to Labor Service Charges in Part Billings for additional information.

This option is only available when you define a miscellaneous service charge.

Minimum order valueSelect this to define a miscellaneous charge to apply to a sales order when the order value is less than the Minimum order value defined against the customer (Customers).

This type of service charge is processed automatically by the SO Service Charges from Order Entry program and cannot be selected by the operator as a normal service charge.

Only the following fields apply to a Minimum order value service charge:

  • Description
  • Product class
  • Currency
  • Taxable and Tax code if applicable
  • Percentage
  • Summarize charge line on invoice

This option is not available when you access the Service Charges program from within the Sales Order Entry program (i.e. while processing a sales order). The reason is that the Minimum order value charge is based on the entire order's value. Adding a Minimum order value while adding sales order lines, will result in the incorrect calculation of this charge.

User defined

Select this to assign a user-defined charge amount to the miscellaneous charge code.

During sales order entry, a specific quantity is requested that is multiplied/divided by the unit price to determine the miscellaneous charge that is to be applied.

This option is not available for service charges attached to a stock code.
Description

Enter text to describe the charge code.

This description is printed on the delivery note and invoice providing you do not require charge lines to be summarized on invoices.
AR Withholding tax code

This indicates the withholding tax requirement defined against the service charge.

This is a custom form field (WHT002) that must be configured and added to the program.
Product class

You cannot assign any of the following product classes to a service charge: _RND, _TAX, _FRT, _FIN, _DEP, _FED, _GST as these product classes are reserved for system use.

Aside from the system-generated product classes mentioned above, the entry made at the Product class field is not validated.

If you specify an invalid product class, then a warning message is displayed whenever this charge code is selected during processing in the Order Entry program.

If you indicate that the charge line is to be summarized on the invoice (Other Options) then this is done by product class.
Currency Assign a currency to the charge code.

You can only access this field if you selected the option: Foreign currency sales required (Accounts Receivable Setup).
User defined prompt

If you are defining a user-defined miscellaneous charge code, then enter the wording to display for this charge line at the quantity field in the Sales Order Entry program.

If you are defining a miscellaneous service charge for the calculation type: Labor, then enter the wording to display for the quantity field in the SO Service Charges from Order Entry program. When this field is left blank, the wording 'Quantity' is used in the SO Service Charges from Order Entry program.
Tax information  
Taxable Select this to apply tax to the service charge.
Tax code

Assign a tax code to the charge line.

This applies only if your Tax system is set to Basic taxsystem or Tax by geographic area (Company Tax Options Setup).

The tax code entered here is used for integration to General Ledger and Sales Tax analysis.
GST Taxable

Select this to assign a GST code to the charge line that is used for integration to General Ledger and Sales Tax analysis.

This applies only if your nationality code is set to CAN (System Setup) and the option: Canadian GST required is enabled (Company Tax Options Setup).
GST code

Indicate the GST code you want to assign to charge lines in Sales Order entry (see Sales Order Entry).

This applies only if your nationality code is set to CAN (System Setup) and the option: Canadian GST required is enabled (Company Tax Options Setup).
Stock code

Enter the returnable item's stock code. For example, the re-usable container, crate, pallet, etc.

The cost and the product class used for the service charge are defined against this stock code.

The stock code must be defined as a returnable item (Stock Codes).

This only applies for the Calculation type: Returnable item.
Fixed value

Assign a fixed value to the charge line that will be used as the default entry inserted against the order.

You can only access this field if you selected a calculation type of Fixed.
Fixed cost

Enter the fixed cost in local currency that you want to assign to the charge line.

This only applies for the Calculation type: Fixed.
Unit price

Enter the unit price that you want to assign to the charge line.

If you select the Apply quantity factor option (Other Options) then the value of the charge is calculated by either multiplying or dividing the unit price by the quantity entered during sales order entry.

If you are defining a miscellaneous service charge, then you can only access this field if you selected a calculation type of User defined, Labor or Returnable item.

If you are defining a service charge attached to a stock code, then you cannot access this field if you selected a calculation type of Fixed value, Fixed percent or Comment.
Unit cost

Enter the unit cost in local currency that you want to assign to the charge line.

If you are defining a miscellaneous service charge, then you can only access this field if you selected a calculation type of User defined.

If you are defining a service charge attached to a stock code, then you cannot access this field if you selected a calculation type of Fixed value, Fixed percent, Comment, Minimum quantity or Returnable item.
Minimum quantity

Indicate the minimum order quantity for which a charge must be raised. If the order quantity is less than or equal to the quantity entered in this field, then a service charge is raised against the sales order line.

This field is only enabled if you selected the Calculation type: Minimum quantity.
Minimum charge

Indicate the minimum service charge value to be invoiced to the customer.

If the charge value calculated during sales order entry is less than the amount specified here then a warning message is displayed and the entry made here is automatically applied to the charge line.

If you are defining a miscellaneous service charge, then you can only access this field if you selected a calculation type of User defined.

If you are defining a service charge attached to a stock code, then you cannot access this field if you selected a calculation type of Fixed value, Fixed percent, Comment or Returnable item.
Maximum charge

Indicate the maximum service charge value to be invoiced to the customer.

If the charge value calculated during sales order entry exceeds the amount specified here then a warning message is displayed and the entry made here is automatically applied to the charge line.

If you are defining a miscellaneous service charge, then you can only access this field if you selected a calculation type of User defined.

If you are defining a service charge attached to a stock code, then you cannot access this field if you selected a calculation type of Fixed value, Fixed percent, Comment or Returnable item.
Percentage

This option is only available if:

  • you selected the Calculation type: Fixed percent and you are attaching a service charge to a stock code.

    You enter the fixed percentage you want to assign to the charge code.

OR

  • you selected the Calculation type: Minimum order value.

    You can enter the percentage that must be applied to the order value and added to the order as the miscellaneous charge.

    For example, if the order value after discount is 100 and you enter 15 in this field, then 15 (i.e. 100 * 15%) is added to the order as a miscellaneous charge.

    OR

    You can leave this field as zero. Then, the value added to the order (as a miscellaneous charge) will be the difference between the Minimum order value defined against the customer (Customers) and the order value after discount.
Percentage applied Define how the percentage must be applied when the service charge is applied.
Less Select this to deduct the percentage.
More Select this to add the percentage.
Summarize charge line on invoice

Select Yes if you want to summarize charge lines by product class within the Invoice totals section (see SO Document Formats) of the invoice. If you select this option, then you can only print a summary service charge line on the invoice, which is the product class and description for the service charge.

If you select No, then each service charge line is printed as a miscellaneous charge line within the invoice details section (see SO Document Formats) of the invoice.
Include charge line in invoice total

Select this to include the calculated value of the charge line in the invoice total calculation.

If you do not select this option (i.e. you want to exclude the charge line from the invoice total calculation), then no General Ledger journal is created for the service charge, records are not output to the sales transaction table and sales analysis is not affected.

This option is automatically selected for a Minimum order value calculation type and cannot be changed.
Allow review in order entry

Select this to be able to select the service charge lines to assign to orders before they are inserted.

You can only select this option if you selected the option to attach service charges to a stock code.

This option is automatically selected for a Minimum order valuecalculation type and cannot be changed.
Quantity factor information  
Apply quantity factor

Select this to apply a quantity factor to the charge line before calculating the value of the charge line.

For example: If your service charge is a packing charge per crate, but you package in boxes (at 5 boxes per crate) then the value of the service charge is determined as follows:

  • the unit price is per crate
  • the unit of measure at the Quantity field of the SO Service Charges from Order Entry program will be boxes
  • the quantity factor is 5
  • the entered quantity in boxes on the SO Service Charges from Order Entry screen is divided by the quantity factor (5) and multiplied by the unit price

You cannot access this field for Fixed value miscellaneous charges.

This option is automatically selected for Returnable item service charges, because a quantity factor must be entered for returnable item charges. A factor of one can be entered.
Quantity factor

Indicate the quantity factor you want to apply to the entry made at the Quantity field (Sales Order Entry) before calculating the value of the charge line.

A quantity factor must be entered if you are defining a returnable item service charge. This factor may be one.
Method Indicate whether you want to multiply or divide the entry made at the Quantity field (Sales Order Entry) by the Quantity factor specified.
Multiply Select this to multiply the entry made at the Quantity field (Sales Order Entry) by the Quantity factor specified.
Divide Select this to divide the entry made at the Quantity field (Sales Order Entry) by the Quantity factor specified.
Round to number of decimals Indicate the number of decimals to which you want to round the quantity. A maximum of 3 decimals can be specified.
Rounding method Indicate whether you want to round the quantity up or down to the nearest decimal or whole number.
Up Select this to round the quantity up.
Down Select this to round the quantity down.

Notes and warnings

eSignature considerations

Electronic Signatures provide security access, transaction logging and event triggering. This enables you to increase control over your system changes.

Access to the following eSignature transactions within this program can be restricted at Operator, Group, Role or Company level. You configure this using the eSignature Setup program.

eSignature Transaction Description
SO Add service charge

Controls the addition of service charges in the Service Charges program.
SO Change service charge

Controls the maintenance of service charges in the Service Charges program.
SO Delete service charge

Controls the deletion of service charges in the Service Charges program.