Understanding Miscellaneous Charges

You can add miscellaneous charges to a purchase order in addition to sales and use taxes and value-added taxes (VAT). Miscellaneous charges can include freight, set up, insurance, and a variety of other costs incurred to deliver purchased goods to a location. Designating the charge as a "landed cost component" also enables you to incorporate the additional cost into the item's inventory value.

If you have PeopleSoft Inventory and PeopleSoft Cost Management installed, the landed cost charges may be defined as additional costs, beyond the merchandise value of the item. Depending on the costing method defined for the inventory item, the values associated with the additional costs are used to value inventory transactions or treated as variances against the item's standard cost. Comparisons of estimated and actual landed costs are provided through PeopleSoft Cost Management reports.

If you do not have PeopleSoft Cost Management installed, you can still define and use miscellaneous charges that are added to the purchase orders. You can set up PeopleSoft Purchasing to automatically calculate miscellaneous charges based on items, item and supplier combinations, and other criteria. A calculation method is assigned to each miscellaneous charge, and an allocation method is assigned to each component. Alternatively, you can manually add miscellaneous charges on the purchase order.

To use miscellaneous charges and landed costs in PeopleSoft Purchasing, set up miscellaneous charges on the Misc Charge/Landed Cost Defn page.

Optionally, you can use the Misc Chrg/Landed Cost Template page to define templates that group several miscellaneous charges. These templates can be associated with an item, category, purchase order, or purchase order schedule. Receipt lines are assigned the estimated costs of their associated purchase order schedule.

Once you have created miscellaneous charges and miscellaneous charge templates, you can assign them to purchase orders on the Header - Miscellaneous Charges page. You can also assign miscellaneous charges and templates to items and categories using the Miscellaneous Charges - Miscellaneous page.