What are My Options for Entering an Add-on Charge/Allowance?
An add-on charge/allowance (AOC) is a cost or allowance that you apply to the total cost of a line, a purchase order, ERS receiver, or invoice. An add-on charge increases the total cost and an add-on allowance lowers the total cost. Examples of add-on charges/allowances include freight insurance, freight charges, and duties. Add-on charge/allowance codes indicate whether a charge or allowance is taxable and whether to print the charge on the purchase order document.
See the Purchase Order User Guide for more information about applying add-on charges/allowances to a purchase order.
Your business processes within your company and with your vendors affect whether or not your purchase order has add-on charges/allowances on it and affects how the related invoice is entered. The next sections discuss how add-on charges/allowances affect invoice entry.
AOC on the PO
If you know the exact add-on charge/allowance associated with a purchase order, the charge/allowance will probably be entered on the purchase order. The form used for AOC entry is determined by the kind of add-on charge/allowance.
| Kind of Add-on Charges/Allowance on the PO | For entry, use |
|---|---|
| Miscellaneous on the purchase order header | Miscellaneous Add-On Cost (MA41.4) or AOC Approval Entry (MA41.7) |
| Spread the total AOC amount to all purchase order and receipt lines (if available) | AOC Approval Entry (MA41.7) |
| Line item | Add-On Cost Detail - Purchase Order (MA41.1) |
You can add a spread AOC to the purchase order and override that spread AOC amount on the invoice. This action does not change the original purchase order AOC, but adds a new record for the invoice (only for the invoice in question). The AOC can be for the same vendor or different vendors, and can be invoiced with the goods in two situations:
-
in the case of the same vendor
-
on an AOC-only invoice with the same or different vendors
AOC Not on the PO
You can add the spread AOC amount on the invoice that was not on the purchase order and have it spread to the distributions from the purchase order lines. This AOC could be for the goods vendor on the purchase order or for a different vendor.
Handling Code (AOC Only)
Some vendors might arrange for the freight to be billed to you directly from the freight company. If you receive a separate freight invoice or are billed directly from the freight company, use the Invoice AOC button on one of the invoice header entry forms to enter the add-on charge/allowance information: Basic Invoice (AP20.1), Taxed Invoice (AP20.2), or Detailed Invoice (AP20.3). You must enter the PO number if the invoice is to use the purchase order for accounting and updating purposes.