Options for creating add-on charges

An add-on charge (AOC) is a cost or allowance that you apply to the total cost of a line, a purchase order, ERS receiver, or invoice. The total cost is increased by an add-on charge and the total cost is lowered by an add-on allowance. Examples of AOCs include freight insurance, freight charges, and duties. AOC codes indicate whether a charge or allowance is taxable and whether to print the charge on the purchase order document.

See the Purchasing User Guide about applying AOCs to a purchase order.

Your business processes within your company and with your vendors affect whether your purchase order has AOCs and affects how the related invoice is created.