Purpose: Use this screen to define how to calculate the declared value for a shipment.
Code field: The value you enter here controls how to calculate declared value for items being shipped. The system calculates this value in case the shipper loses the package and must reimburse you for the lost items.
Valid values are:
• COST = calculate declared value based on the price at which you purchased the item from your vendor.
• RETAIL = calculate declared value based on the price at which the item was sold.
For example, your cost to purchase an item might be $17.00 (COST), while the price at which you sell the item is $35.00 (RETAIL).
The business reason for this system control value is that some shippers charge an extra fee for packages with a declared value over a specific dollar amount (for example, any package over $100). Your past experiences with a shipper (shipper reliability) might influence how you set this value. If a shipper is unreliable, for example, you might set this value to RETAIL so that you can recoup the full value of the package. If the shipper is reliable, however, you might set this value to COST so that you can avoid extra shipping charges.