Configure accounts receivable charges

  • 6 minutes

This unit explains how to configure accounts receivable charges.

Define auto charges

You might apply charges automatically to a sales order if, for example, a customer is located outside a specific vicinity.

Automatic charges, which are referred to as auto charges, are applied automatically when you create a sales order. You can define auto charges for a specific customer or item, or for groups of customers or all items. You can also define auto charges that apply to all vendors, customers, and items.

By selecting the Keep check box, you can keep the charges transaction after invoicing. This means that the charge is applied every time you create a new invoice for the selected customer account.

The actions that are available from the Auto charges page depend on where you access the page from.

  1. Go to Accounts receivable > Charges setup > Auto charges.
  2. Select New to define a new auto charge.
  3. In the Level field, select the level to which to apply the auto charge from the following values: Header, which applies charges to the order header and Line, which applies charges to the order lines.
  4. Select an account in the Account code field to be Table to assign charges to a specific customer, Group to assign charges to a miscellaneous charges group, or All which assigns charges to all customers.
  5. In the Customer relation field, select a specific customer if you selected Table, or select a customer charges group if you selected Group.
  6. In the Item code field, select an item code. You can select an item code only when you define auto charges at the lines level. If you select Table, the system assigns charges to a specific item. Choose Group to assign charges to an item charges group, or select All to assign charges to all items.
  7. In the Item relation field, select a specific item if you selected Table, or select an item charges group if you selected Group.
  8. Expand the Lines FastTab to define the charges and the charges rates to use when the current auto charge is applied.
  9. In the Currency field, select the currency to use to calculate the charge.
  10. In the Charges code field, select the code for the charge.
  11. Specify how to calculate the charge in the Category field and enter a value in the Charges value field.

The following options are available in the Category field:

  • Fixed - The charge is entered as a fixed amount on the line. Fixed charges can be used on charges in the order header and on the order lines.
  • Pcs. - The charge is based on the unit. These charges can be used only on order lines.
  • Percent - The charge is entered as a percentage on the line. Percentage charges can be used on charges in the order header and on the order lines.
  • Intercompany percent - The charge is entered as a percentage on the line for intercompany orders. Intercompany percentage charges can be used only on order lines.
  • External - The charge is calculated by a third-party service that is associated with one or more shipping carriers.

If you are validating charges for accounts receivable, and if the charges are calculated as a fixed amount instead of a percentage, this value must be less than the maximum amount that is specified in the Charges code page.

In the Charges currency code field, specify a currency for the charge to use a different currency than is specified in the Currency field. This is possible if the Debit or Credit type is either Ledger account or Item for the selected charges code.

Specify a starting amount to apply the auto charge to in the From amount field. In the To amount field, specify the ending amount to apply the auto charge to. Amount in this context refers to the order total. To define tiered charges, you can specify a from amount and a to amount only if you define auto charges at the main level and if the category is Fixed or Percent.

To set up charge codes for Accounts receivable, follow this procedure:

  1. Go to Accounts Receivable > Charges setup > Charges code.

  2. Select New.

  3. In the Charges code field, type a code for the charge.

  4. In the Description field, type a description of the charge.

    Optional: In the Item sales tax group field, select a sales tax group.

  5. On the Posting FastTab, specify how the charge is automatically debited and credited.

  6. If you selected Ledger account as the debit type or credit type, specify a posting type in the Debit posting and Credit posting fields, and specify the main account in the Debit account and Credit account fields.

To create charges groups for customers, follow this procedure:

  1. Go to Accounts receivable > Charges setup > Customer charges group.
  2. In the Charges group field, enter a code for the charges group. The code can contain both letters and numbers.
  3. In the Description field, enter a description of the charges group.
  4. Close the page to save your changes.

To create item charges groups, follow this procedure:

  1. Go to Accounts receivable > Charges setup > Item charge groups.
  2. Select New to create an item charges group.
  3. In the Charges group field, enter a code for the group. The code can be alphanumeric.
  4. In the Description field, enter a description for the group.
  5. Close the page to save your changes.