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There are several ways to assess a surcharge (i.e. Fuel Surcharge, Delivery Surcharge, Total Order ‘Up-Charge’) on a sales order. This document describes three ways to add a surcharge….two are set/defined amounts and the other is a percentage amount, in addition there are instructions on how to have different fuel surcharge rates for a customer’s Alternate Ship-to accounts.
- To add a Fuel Surcharge or Delivery Surcharge based on zip codes see the document titled, “Freight Fees Based on Zip Codes”.
- To add a Fuel Surcharge or Delivery Surcharge based on Zip Codes and weight see the document titled, “Freight Fees Based on Zip Codes & Weight”.
- To add a Fuel Surcharge or Delivery Surcharge based on Zones & Weight see the document titled, “Freight Fees Based on Zones & Weight”.
METHOD #1: The surcharge uses a pre-defined item with a pre-defined amount. All customers, within a designated range of customer numbers, will be charged the fuel surcharge. Go to:
Ø Order Processing (Module 6)
o System Management Functions (Task 32)
§ Modify Parameter Files (Sub-Task 22)
· O/E General (Selection 1)
Look for the parameter DELV’ITEM (Note: a quick way to find a parameter: If the parameters come up in WordPad, use the “Find” option from the toolbar and when you close the window, answer Yes or No to save the changes. If the parameters come up in Vue mode, press the Esc key and at the > prompt type in the letter s, then a blank space followed by the parameter you are searching for, for example: >s DELV’ITEM then press the Enter key. When you are done, press the Esc key followed by an f to save the changes or a q to exit without making any changes) This is the first of several parameters, all in the same area, that need to be addressed.
Ø For standard automated fuel surcharge only option: set DELV'ITEM the same as FUEL’SURCHARGE’ITEM.
Ø For separate delivery and surcharge: set DELV'ITEM and FUEL’SURCHARGE’ITEM with different item numbers.
The Customer ranges (DELV’START’CUS & DELV’END’CUS) and Net (DELV’NET) works with either option. To disable this functionality, leave both ‘ITEM’ parameters blank.
DELV'ITEM=1006 Item used for delivery charges, do not add dash after the first 3 characters.
DELV'NET=50000 State the order dollar threshold for free delivery (50000 indicates $500.00, also the max number of digits that can be used is 8)
DELV'START'CUS=00100 Starting customer number the parameter rules will apply to.
DELV'END'CUS=89999 Ending customer number the parameter rules will apply to.
DELV'IVC'CODES=S Customer invoice codes, in addition to or in lieu of Starting & Ending Customer numbers, which trigger surcharge (Invoice Codes are placed on field 50 of the Customer Master. Use a single-letter code, up to 8 codes may be entered on the parameter)
FUEL'SURCHARGE'ITEM=1004 Item used for fuel surcharges, do not add dash after the first 3 characters.
FUEL'PRINT'LABEL=FCHRGE Label to print with fuel dollar amount on invoice if it is to be filtered out of the line items and printed in trailer on the invoice. The item number(s) and description will appear with the normal line items on the invoice if this parameter is left blank.
METHOD #2: This is a flat-fee surcharge based on whether or not the customer picks-up the order and the freight terms assigned to the customer. This method uses a combination of the Freight Terms table and parameter settings in the Order Processing module.
To set up the Freight Term, go to:
Ø Order Processing (Module 6)
o System Management Functions (Task 32)
§ Modify Application Tables (Sub-Task 17)
· Freight Terms (Selection 1)
The Freight Term is placed on field #37 in the Customer Master record (Task 17 in the AR module) Below is an example of how the Freight Term table can be set up:
; Zone Frt
;Key Text flag $ X
;- --------- - ------
"1" , "Custpickup "
"2" , "Charge 2.00H"
"3" , "Collect 4.00H"
"4" , "COD 6.00 "
"5" , "Fuel Charge 7.50H"
"6" , "Exempt Cust "
"A" , "Area A 1.99 "
"B" , "Area B 3.50 "
"C" , "Area C 6.50 "
"$" , "FORCE ENTRY "
By adding dollar amounts under the Frt$” column, the system will reference the freight table and apply the appropriate fuel surcharge amount. Note: by also placing an “H” in the “X” column, the amount will appear on field # 5 on the Collection screen of a sales order (the field name is parameter controlled, see below for instructions on how to name the field); if no “H” is placed under the “X” column, the designated amount will appear in field #4 (Freight) on the Collection screen of a sales order.
Using the examples above:
Ø Customers, with the Freight Term of “1” or “6” on their Customer Master record, won’t be charged a fuel/delivery fee.
Ø Customers, with the Freight Term of “2”, “3” or “5” on their Customer Master record, will be charged $2.00, $4.00 or $7.50 respectively, and the amount will appear in field #5 on the Collection Screen of a Sales Order
Ø Customers with the Freight Term of “4” on their Customer Master record will be charged $6.00 and the amount will appear in field #4 on the Collection Screen of a Sales Order.
Ø Customers with the Freight Term of “A”, “B” or “C” on their Customer Master record will be charged $1.99, $3.50 or $6.50 respectively and the amount will appear in field #4 on the Collection Screen of a Sales Order.
Ø Customers with the Freight Term of “$” on their Customer Master record will be forced to go to field 12 (Freight Terms) on the Shipping Screen. They will be forced to make an entry from the Freight Terms table.
Note: to assure the freight amount goes to the correct General Ledger account, please go to the General Ledger module, Task 32 (System Management Functions); Sub-task 5 (Setup Automatic Interface) and ‘verify’ the GL number for the Freight account in the Accounts Receivable section.
The parameter setup:
There are two parameter settings, both located in:
Ø Order Processing (Module 6)
o System Management Functions (Task 32)
§ Modify Parameter Files (Sub-Task 22)
· O/E General (Selection 1)
Look for the parameter: PROMPT’HANDLING (Note: a quick way to find a parameter: If the parameters come up in WordPad, use the “Find” option from the toolbar and when you close the window, answer Yes or No to save the changes. If the parameters come up in Vue mode, press the Esc key and at the > prompt type in the letter s, then a blank space followed by the parameter you are searching for, for example: >s prompt’handling then press the Enter key. When you are done, press the Esc key followed by an f to save the changes or a q to exit without making any changes)
The parameter “PROMPT’HANDLING” controls the wording on field #5 on the Collection Screen of a Sales Order. Type in, for example: Fuel Surcharge if that is what you want to name the field. If left blank, it will default to: Handling
The next parameter setting is in the same parameter file, look for : PICKUP’Y’FGHTRM (use the information from above to quickly find the parameter). This parameter should be set up to use the Freight Term used when the customer pickup field (#9 Cust Pickup) on the first screen of a sales order is changed to a Y for Yes. If a Freight Term with a zero dollar amount (from the example above, Freight Term #1) is used, it needs to be entered here. This will prevent a fuel surcharge being levied to customers who pick up their orders. The Freight Term entered MUST be valid (i.e: "1" , "Custpickup” code from above).; if left blank then the term on the Customer Master file will be used, regardless if the order is picked up by the customer or not.
To exempt a customer completely from the surcharge, change the Freight Term for the customer in the Customer Master record to use a freight term that has a zero dollar value. (i.e. term 6, from the above example)
ALTERNATE SHIP-TO ACCOUNTS:
Each Alternate Ship-to account (found in Task 19 in the Order Processing module) can have a different fuel surcharge rate than the main/master customer. The Alternate Ship-to uses a Ship-via code and you can tie the Ship-via code to SET the Freight Term (thereby giving the surcharge associated with the Freight Term).
First go to Order Processing module; Task 32 - System Management; Subtask 17 - Modify Application Table; Selection 1 - Freight Terms. Print this table or copy it down.
Then still in the O/P module, System Management; Modify Application Table; go to Selection 4 - Shipment Methods. Look at the “F” column. This column is where the single-digit Freight Term code is entered that you want to be associated with this Ship-via line. You can have the shipment methods table set the Freight terms.
For a Ship-via example:
; JOB TRACK JOB TRACK
; Delivery Pick-up Required
; Description Rule Rule F Route
; ----.----1- ----.----1 ----.----1 - ----.---
"1" , "OUR truck "
"2" , "UPS Ground "
"3" , "Cust pickup "
"C" , "Area C 2 "
"D" , "Area D B "
This table tells the system if the Customer Master (field 38) or Alternate Ship-to (field 14) record has a Ship-via code of C or D, then use Freight Terms 2 or 4, respectively. You may want to setup new Freight Terms and/or Ship-via codes so the Customer Master and one or all of the Alternate Ship-to’s can be charged a different fuel surcharge based on the Freight Terms if your current structure doesn’t support this method.
METHOD #3: This method uses a percentage of the total sales order (not including the ‘surcharge item’) as the surcharge amount. For example, your ‘fuel’ charge is based on the amount of the order…the larger the order, the larger the ‘fuel’ surcharge. To accomplish this method, you must first set up an item.
The item needs to have certain fields set up
.
Item Type : M Must be set to M for Material
Report class: 03 Note the Report Class, it is used in the setup below.
Net priced? : N
Dimensional?: R This is the recommended type to use.
Quan Table : N/A This should be blank or set to N/A (not applicable.)
Once the item is setup, proceed to:
· Order Entry (Module 6)
o System Management Functions (Task 32)
§ Modify Application Tables (Sub-task 17)
· Group Discount Table (Selection 16)
Note At the very top line of the table, there is a place for all Customer Types that do not qualify for the surcharges and group discounts. i.e. if Y$. is listed, the system looks to the Customer Type (found in field #12 on the Customer Master file), and all customers who have a Customer Type of Y or $ (using the example) will NOT receive the surcharge or any group discount.
Add a line for the surcharge discount. Below is the setup for three situations: one example with be an ‘up-charge’ and another will be for a ‘down-charge’ and the third is for a ‘straight-across-the-board’ surcharge percent.
;Group name CL RF T B Break 1 Disc 1 Break 2 Disc 2 Break 3 Disc 3
;----------- -- -- - - ------- ------ ------- ------ ------- ------
1003 i03.111 D U 1 95.00 02000 85.00 04000 70.00
1005 i03.112 D U 1 5.00 02000 30.00 05000 45.00
1007 i03.113 D U 1 90.00
Up-charge – the more the customer buys, the higher the ‘percent discount’ is added. Using item #1003, and the customer bought items totaling $5.00 (falling between Break 1 of $0.01 and up to Break 2 beginning at $20.00) they would be charged a surcharge of $0.25….which is 95% of the $5.00. To continue the example, if the customer bought items totaling $25.00 (falling between Break 2 of $20.00 and up to Break 3 beginning at $40.00), they would be charged a surcharge of $3.75….which is 85% of the $25.00. One more example, if a customer bought items totaling $40.00 (beginning at Break 3), they would be charge a surcharge of $12.00….which is 70% of the $40.00. (to explain: 95% discount on $5.00 is $.25, the same 95% on $25.00 is $1.25. Using the example from the table above, for item #1003, the percent for $25.00 is 85%...thereby charging $3.75, instead of just $1.25)
Down-charge – the more the customer buys, the smaller the ‘percent discount’ is added. using item #1005, and the customer bought items totaling $5.00, they would be charged a surcharge of $4.75…which is 5% of the $5.00. If the customer bought items totaling $25.00, there would be charged a surcharge of $17.50….which is 30% of the $25.00. If the customer bought items totaling $50.00, they would be charged a surcharge of $27.50…which is 45% of the $50.00. (to explain: 5% discount on $5.00 is $4.75, the same 5% on $25.00 is $23.75. Using the example from the table above, for item #1005, the percent for $25.00 is 30%....thereby only charging $17.50, instead of $23.75)
Straight-across-the-board % - using item 1007, the customer would be charged a 10% surcharge on all items.
****Note: as with all Group Discounts, the system doesn’t calculate the amount until AFTER the items are entered and the user goes to the Collection Screen of the order…if you use your left/back arrow to return to the Item screen, you will see the calculated amount on the Surcharge Item.
****Note: to trigger the surcharge item to automatically be added to the sales order, a few things must also be done:
1. Set the parameters DELV'ITEM= and FUEL'SURCHARGE'ITEM= to the surcharge item # (the parameters are found in 6/32/22/1).
2. Set a user-defined, single-letter Invoice Code in the parameter: DELV'IVC'CODES= (also found in 6/32/22/1) i.e. use S for Surcharge.
3. Place the Invoice Code in field 50 (Invoice Codes) on the Customer Master…found in 2/17… for customers who will be getting the surcharge,