Defining Add-On Charge/Allowance Codes

Define add-on charge/allowance codes to let you add a charge/allowance (deduction) to an invoice. Examples of added charges/allowances include freight insurance, freight charges, and duties. You can also indicate whether an add-on charge/allowance is taxable, and whether to print the charge/allowance on the purchase order document.

To define an add-on charge/allowance code

  1. Access Add on Charge/Allowance (MA08.1).
  2. Define header information. Use the following guidelines to enter field values:
    Type

    Select a type for the code.

    C = Cost

    A = Allowance

    Status

    Determines whether the code is active or inactive.

    Posting Account

    Select the accounting unit defined for add-on charge amounts.

    Difference Account

    Select the accounting unit to which remaining add-on charge amounts are posted (due to a spread).

  3. Use the Landed field to decide whether the add-on charge is landed or non-landed. A landed add-on charge takes on the attributes of the line to which it is landed. A non-landed add-on charge takes on no attributes from the lines. If you select No in the Landed field, then the amount is posted to the posting account specified on the add-on charge.

    Non-landed add-on charges can be paid to different vendors, with each vendor submitting a separate invoice.

    Note: If the add-on charge is landed, the quantity on the add-on charge may not be different than the quantity on the goods.
  4. Select detail parameters. Use the following guidelines to enter field values:
    Note: For expense invoices only, a "no spread" add-on charge/allowance is allowed.
    Spread Method

    Select a method of spreading or distributing add-on charge/allowance amounts across the invoice. You can spread the cost by amount or quantity.

    A = Amount

    Q = Quantity

    N = No Spread

    For inventory items, if you use a spread method of Volume and Weight, you need to identify the weight for the item in Item Master (IC11.1) and the stock cubic amount for the volume. For non-inventory items, you can add the volume and weight on the line. You have to 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

    Indicates whether the add-on charge is taxable. If you typed a tax code, you must select Taxable in this field.

    T = Taxable

    E = Exempt

    Blank

    The default is Exempt.

    Print Flag

    Determines whether the add-on charge/allowance prints on the purchase order or is transmitted via EDI.

    Summary Flag

    Determines whether to summarize and print the add-on charge/allowance amount for line items at the end of the purchase order.

    The default is Yes.

  5. Select the Add form action to add the add-on charge/allowance code.

Related Reports and Inquiries

To Use
List add-on charge/allowance codes and their definitions Add on Charge/Allowance Listing (MA208)
Related topics