Environmental handling fees

In Distribution SX.e, you can apply, calculate, and record environmental handling fees (EHF) on the sale of designated products, such as paint, light bulbs, and electronics. The fees are applied only in Sales Order Entry. The fee rates can vary by product or units of measure. For example, the fee on a 1 gallon paint container might be less than the fee on a 5 gallon container. The fee may not be charged to exempt customers.

Distributors may be required to collect these fees where applicable and submit the collected fees on a regular basis to the governmental entity who administrates the fee rate, product type and size, effective dates, related exemptions or certificate, whether the fee is taxable, remittance schedule, audits, and so on. Distribution SX.e functionality allows the lines of an order to be correctly subtotaled, to have the EHF charges display separately, and to have the customer charged for the total of the products and the EHF amounts.

Create one or more EHFs in SA Order Entry Addon Setup. You must assign each EHF an Addon number. You can then associate the Addon number with a general ledger account, product, geographical location, and customer. We recommend you create at least one EHF addon for each province or state requiring environmental handling fees, assigning each with their own general ledger account number. Distribution SX.e functionality allows the lines of an order to be correctly subtotaled, to have the EHF charges display separately, and to have the customer charged for the total of the products and the EHF amounts. The EHF amount is recorded in the assigned general ledger account.

Perform additional setups in these functions:

  • In SA Administrator Options-System-User Fields, set up EHF-related user-defined fields.
  • In SA Operator Setup, you must provide operators who are setting up the fees with security to two EHF-related functions:
    • Product Environmental Handling Fee Setup
    • Environmental Handling Fee Exemption Setup
  • Use Product Environmental Handling Fee Setup to associate a product with an Addon number, to specify the amount of the EHF, and to specify the geographical location of the governmental entity requiring the fee.
  • Optionally, use Environmental Handling Fee Exemption Setup to specify an exemption for a customer. For example, a customer may be exempt for all products, for certain addon numbers, or a specific State or Province.

To provide visibility for EHF for each line, four columns are displayed in the Line Items grid in Sales Order Entry: EHF Addon #, EHF Amount, EHF Exempt Amount, and EHF Net Amount. In addition, if you handle nonstocks, you must use the Personalize feature to add both the EHF Addon # and EHF Amount fields to Advanced Line Entry or the Extended view in Sales Order Entry.

These fields are enterable. These fields are displayed automatically on the Returns view without Personalization. The fields are enterable when the return line is not tied to an invoice.

The EHF can only be charged at the line level; the fee cannot be set for components of a kit, tally, or value add. EHF charges may or may not be taxable. Verify taxable status with the governmental entity administrating the fee. Line-level EHF values, such as amount and addon number, are not automatically available for Storeroom, Storefront, or the Infor CPQ product configurator. Mass maintenance is not available for EHF.

Environmental handling fee exemptions

Use Environmental Handling Fee Exemption Setup to create and maintain a customer-level environmental handling fee (EHF) exemptions. You must create one record for each Customer and ShipTo that has an exemption from all fees, or from a particular province or state, addon, or product. For example, a low-level producer might be exempt from the EHF. A customer who has an approved collection procedure to recycle the product might be exempt.

The type of exemption determines which fields are specified during setup. For example, if the exemption is based only on a product, the geographical location is not necessary. If the exemption is based on a product sold in a specific geographical location, both fields must be specified.

The Distribution SX.e system applies this hierarchy during Sales Order Entry to determine if an order line is exempt from an EHF:

  1. If an exemption record matching the customer number of the order is not found in the Environmental Handling Fee Exemption Setup table, the assigned EHF is applied.
  2. If the Ship To is not specified, then the customer is exempt for all ship tos.
  3. If the Province or State is not specified, then the customer or ship to is exempt in all provinces or states.
  4. If the Addon number is not specified, then the customer or ship to is exempt for all EHF addons in the province or state.
  5. If the Product is not specified, then the customer or ship to is exempt for all products.
  6. If a blank Ship To, Province or State, Addon #, or Product is found during validation, then everything for that level is considered exempt. For example, if Province or State is blank, then orders for any province or state are exempt, even if other records for specific provinces or states are found.

Deleting records

When a product or catalog product record is deleted from Product Setup or Product Catalog Setup, any associated Product Environmental Handling Fee Setup and Environmental Handling Fees Exemption Setup records are deleted.

When a customer or ship to record is deleted from Customer Setup or Customer Ship To Setup, any associated Product Environmental Handling Fee Setup and Environmental Handling Fee Exemption Setup records are deleted.

Document printing

The EHF Amount value is printed on these documents:

  • Sales Entry Processing Acknowledgments Report
  • Sales Entry Invoice Processing Report
  • Sales Consolidated Invoice Report
  • Sales Demand Invoices Report

Report printing is available in standard form print (format 1), UnForm stream (format 3), and XML output (format 4). The EHF Amount or EHF Net Amount print as a column label in the report when printing prices and when the line contains an environmental handling fee. The line row label displays the EHF Addon #, as specified in SA Order Entry Addon Setup.

Personalizing EHF for nonstocks

If you handle nonstocks, you must add both the EHF Addon # and EHF Amount fields to the Add Line Item section or the Extended view in Sales Order Entry using the Personalization feature. The EHF Addon # and EHF Amount fields are then displayed on the Nonstock view in Sales Order Entry. These fields are enterable and the values must be specified during order entry.

Adjust your work flow to ensure you know and specify a valid and correct EHF Addon # and EHF Amount. No error message is provided to ensure the correct EHF is specified.

BOD integration

The Invoice BOD includes environmental handling fees. The Invoice BOD contains EHF amounts when created by the Sales Entry Invoice Processing Report.

Related topics