Creating add on/allowance codes
Use this procedure to create add on charge/allowance codes for an invoice.
- Select Financials > Payables > Match Setup > Add On Charges.
- Click Create.
- Specify a Match Company and Description and an Add On Charge.
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Specify this information:
- Type
- Select a type for the code. Types are Cost, Allowance, Freight, and Insurance.
- Track Type
- Select a track type. Track types are Other AOC, Insurance, Freight, and Customs Charges.
- Spread Method
- Select a method of spreading or distributing add on
charge/allowance amounts across the invoice. You can spread the cost
by volume, weight, rate, amount, or quantity. No Spread can be used
by both Expense and Match invoices, but an Expense invoice can only
use the No Spread.
For inventory items, if you use a spread method of Volume and Weight, then you must identify the weight for the item in Item Master. You must also identify the stock cubic amount for the volume. For non-inventory items, you can add the volume and weight on the line. You must identify the weight and volume for the lines in order for it to spread.
Add on charge can be spread on the PO by amount, quantity, weight, rate, and volume. Spread AOC on the invoice can be changed or added for amount and quantity only.The rate is identified on the add on charge when you add it to the purchase order. The rate is a percentage of the line's extended cost.
- Taxable
- Select this check box if the add-on charge is taxable. If you specified a tax code, then you must select Taxable in this field.
- Summarize
- Select this check box to summarize and print the add on charge/allowance amount for line items at the end of the purchase order.
- Print On PO
- Select this check box to print the add on charge/allowance on the purchase order or to transmit using EDI.
- Landed
- Select this check box if the add on charge is landed. A landed add on charge takes on the attributes of the line to which it is landed. If the add-on charge is landed, then the quantity that is on the add-on charge must be the same as the quantity on the goods. A non-landed add on charge takes on no attributes from the lines. The amount is posted to the posting account that is specified on the add on charge.
- Posting Account
- Select the account and dimensions that are defined for add on charge amounts.
- Difference Account
- Select the account and dimensions to which remaining add on charge amounts are posted due to a spread.
- Click Save.