Landed Cost Charge Lines
Trade operation charge is an estimated or actual landed cost charge for allocation to purchase order schedules, and subsequently to receipts. Landed cost charges are additional material supplier charges and third party charges.
These charges are incurred in the process of receiving material into ownership or possession. To create charge lines for a trade operation, edit the trade operation and click Add under Landed Cost Charges. The table lists the options available on the Create Charge Line dialog.
Field |
Description |
---|---|
Charge BU |
The requisitioning business unit for the trade operation. |
Charge Name | Name of the landed cost charge. |
Charge Basis |
The level where the charge is captured. This criteria used to determine how charges are calculated and distributed among the different purchase order. The charge basis options are as follows:
|
Related Charges | If you've set Charge Basis to Percentage of Other Charges, then click the icon next to Related Charges to add the related charge lines. |
Charge Basis UOM | Unit of measure used to calculate the charges. |
Service PO | Enable this to derive the charge amount from a service PO line. |
PO Number | PO number to derive the charge amount from. |
Service PO Line Number | Service PO line schedule to derive the charge amount from. |
Service PO Schedule | Service PO line number to derive the charge amount from. |
Supplier | Select the supplier for which the landed cost charge is applicable. |
Supplier Site | Select the supplier site for which the landed cost charge is applicable. |
Charge Currency | Select the currency for calculating and allocating charges. |
Rate | Provide the percentage value to calculate and allocate charges. You can enter a value only when charge basis is per unit or percentage of item price. |
Amount | Provide the total charge amount. You can eneter a value only when charge basis is aggregate or in the case of service PO, where amount is derived from PO line. |
Nonrecoverable Tax | This field is populated automatically from the taxation system if the Enable automatic tax calculation option is selected for the charge line. If this option disabled, user can manually add the amount. |
Track Missing Invoices | Select this option to identify invoices that are missing or not yet received for the associated charges. |
Currency Conversion Rate Type | Type of currency conversion rate applicable for the charge line. |
Currency Conversion Date | Date for which currency conversion rate must be considered. |
Allocation Basis |
The basis used to allocate the charge to purchase order schedules. The allocation basis options are as follows:
|
Allocation Basis Base UOM | Unit of measure used to allocate the charges to PO schedules. |
Additionally, add charge references to a charge line. Charge references are utilized to align AP invoices with charge lines, enabling the automatic linking of the charge lines. The values present on a charge line need to be accurately replicated on the invoice for landed cost. This allows the system to identify a match based on these parameters and establish a connection between the charge line and the corresponding invoice.
Various unique identifiers related to the shipment, such as ASN number, bill of lading number, or shipment date, can be employed as reference values. The applicable options are listed here.
-
Name: Select the name of charge reference
-
Value: Unique value for the reference
-
Automatically Associate on Match: Select to allow automatic association of invoices.
The details regarding the allocation of charges are captured in the charge line Status field. The charge line Status values are described in the following table.
Charge Line Status |
Description |
---|---|
New |
This is the initial status assigned to a new charge line. |
Pending PO Schedule Association |
The charge line has been successfully saved, but no purchase order schedules have been associated with the charge. |
Ready for Allocation |
The charge line has been successfully saved and the following conditions have been met:
A warning message will be displayed if the applicable per unit and percentage values haven't been entered on a charge line. |