Add on charges and allowances

Examples of added charges and allowances include freight insurance, freight charges, and duties. You can also indicate whether an add on charge and allowance is taxable or whether the charge and allowance is printed on the purchase order document. During add on charge setup, you decide whether an add on charge is landed. Select Yes to indicate that the add on charge is posted to the account on the purchase order line. Select No to indicate that the add on charge is posted to the account that is assigned during add on charge setup.

If you do not know the freight charge when creating the purchase order, then you cannot frequently use add on charges. If you know the freight charges and you negotiate them with the vendor, then specify freight charges when you create the purchase order. If there is an add on charge on the invoice, but the amount is unknown, then use Zero Cost when you create the purchase order.