What are Add-On Charges/Allowances?

Add-on charge/allowance codes let you add a charge or 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, or whether to print the charge/allowance on the purchase order document.

During add-on charge setup, you decide whether an add-on charge is landed or not. Selecting Yes indicates the add-on charge posts to the account on the purchase order line. Selecting No indicates the add-on charge posts to the account assigned during add-on charge setup.

If you do not know the freight charge when creating the purchase order, you may not use add-on charges frequently. However, if you know what the freight charges are and negotiate them with the vendor, you would enter freight charges when creating the purchase order.

If you know there will be an add-on charge on the invoice, but not the amount, you can use the Zero Cost option during purchase order entry.