Automatic Calculation Apportioning

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 Action > Apportion Costs 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 Action > Apportion Costs in the Landed Costs form. You can then amend as required.