Option 1: Defining standard sales-based charges

  1. Access Standard Sales Based Charge (FR05.1).
  2. Select the company number for the company that you want to define the sales-based charges.
  3. In the Charge field, specify a charge identifier if you are adding a new charge. If you are inquiring on an existing charge, then select a valid standard sales-based charge.
  4. Select the company base currency code, defined on Company (GL10.1).
  5. To define general information about a standard sales-based charge, use these guidelines to specify the field values on the Main form tab:
    Frequency

    Select the frequency of the charge.

    Note: You can select any frequency. Because these charges can be copied to Sales Based Charge Maintenance (FR15.2) when you create customer contracts, consider assigning a frequency that meets the requirements for the Frequency field on FR15.2.

    See Maintaining customer contract charges.

    Status

    Select whether the charge is active or inactive.

    Note: The status cannot be changed to inactive if the charge is on a standard contract. Before you can make a charge inactive, you must delete the charge from all standard contracts assigned the charge on Standard Contract (FR02.1).
    Process Level

    You can select a valid process level which is the reporting hierarchy below the company.

    Note: A process level must be specified for invoice creation. This value is assigned to all invoices created on Invoice Interface (FR140). You define a process level on Process Level (BL01.1). In the Franchise Management application, process level is used for reporting, not processing.
    Taxable

    Select whether the charge is taxable.

    Tax Code

    Select a valid tax code that represents specific tax information.

    Note: You can define the tax code on Tax Code Master (TX01.1).
    Minimum Amount

    You can specify the user-defined minimum cyclical sales-based charge amount.

    Note: This is the lowest amount that will be invoiced for this charge identifier. This amount is charged if the calculated amount is less than this amount.
    Maximum Amount

    You can specify the user-defined maximum charge or ceiling for the sales-based charge.

    Note: This is the highest amount that will be invoiced for this charge identifier. This amount is charged if the calculated amount is greater than this amount.
    Default Percentage of Sales

    You can specify the user-defined default percentage of sales for a sales-based charge. In the Franchise Management application, this percentage is an optional, user-defined rate, which is used to calculate a sales-based charge.

    Base Amount

    You can specify the user-defined base amount to which the percentage of sales is added.

    When you release a sales record that contains the charge defined here, the base amount is added to the percentage of sales or to the sliding scale charge. The base amount is not added to the minimum or maximum amount.

  6. To define a sliding scale for a standard sales-based charge, then select Sliding Scale to open Standard Sales Based Sliding Scale (FR05.2). See Option 2: Defining a standard sales-based sliding scale.
    Note: The Accrual/Offset accounts you select here are used for posting estimated sales which are auto-reversed in the General Ledger application the next time you run Accrual Closing (FR190).
  7. You can select the Accounts tab to define general ledger accounts, account categories, and activity information about the standard sales-based charge.