Automatic Calculation Apportioning
The system can automatically calculate the amount to apportion using various methods in place of manually entering the apportionment amounts. You can still amend the apportionment amounts afterwards. There are two basic methods:
Charge factor on the Charge Rule
This is set up on the Charge Rule and is mandatory.
Example 1
Select a value label to use as a charge factor. The most common one would be a value label used for holding a quantity. Therefore, for lines selected to have apportioned costs, the system will pro rata the apportioned amount based on the quantities on the apportionment lines.
- Apportionment Line 1 - goods item X quantity 10
- Apportionment Line 2 goods item Y quantity 5
- Amount to be apportioned is 100 GBP over a total quantity of 15 items.
This is calculated as follows:
| Line | Item | Charge Factor (e.g. quantity) | Apportioned Amount |
|---|---|---|---|
| 1 | X | 10 | 100 GBP * (10/15) = 66.67 GBP |
| 2 | Y | 5 | 100 GBP * (5/15) = 33.33 GBP |
| Total = 15 | Total = 100 GBP |
To perform this automatic calculation, select in the Landed Costs form. You can then amend as required.
Example 2
If the charge factor is 'With Units', then not only the quantity but also the unit of measure label is taken into account when apportioning.
- 500 grammes of item A
- 1 kilogram of item B.
If the source quantity is 501 and the unit of measure label is ignored then:
- 500 would be apportioned to item A
- 1 would be apportioned to item B.
However, using unit of measure labels with 500 grammes as half 1 kilogram, item B would be apportioned twice as much as item A as follows:
- 167 would be apportioned to item A
- 334 would be apportioned to item B.
Charge Indexes
This is set up in the function Charge Index (CHI) and is linked to a Charge Rule. It is optional and used in conjunction with the Charge Factor. There are a number of 'weighting bases' that can be used. Charge indexes are best explained using the weighting base of 'item'.
- Item X - weighting factor = 3
- Item Y weighting factor = 2
- Item Z no weighting factor defined, default of 1 used.
Item X is 1.5 times more heavily weighted than item Y, and 3 times more than item Z. Because item Z has no defined weighting in the Charge Index Setup, the default of 1 is used.
When processing a transaction with goods items using the quantities in the example above, the following occurs for an apportioned amount of 100 GBP:
| Line | Item | Charge Factor (e.g. quantity) | Charge Index | Weighting Calculation | Apportioned Amount |
|---|---|---|---|---|---|
| 1 | X | 10 | 3 | 10 * 3 = 30 | 100 GBP * (30/40) = 75 GBP |
| 2 | Y | 5 | 2 | 5 * 2 = 10 | 100 GBP * (10/40) = 25 GBP |
| Total = 40 | Total = 100 GBP |
To perform this automatic calculation, select in the Landed Costs form. You can then amend as required.