Minimums

You can create Minimum charge records to ensure that you always receive a minimum amount for performing specific services, regardless of how much inventory is handled. This can help cover your costs when you perform low-volume services that increase in efficiency only at high volumes.

Required?

Prerequisites

Customer. Minimum charge amounts are customer-specific.
Facility/Bill-To/Bill Group. You can optionally restrict a minimum charge by facility, Bill-To customer, or bill group.
Charge Codes. You must identify the charge code used as the basis for the minimum charge amount.
UOM. Minimums are calculated based on a specific unit of measure level.

Additional Information

Minimum records consist of a header record, which identifies when and how the minimum should be applied, and multiple detail records, which identify which charge codes should use the minimum charge amount.

The detail records identify all of the charge codes associated with the minimum charge. The system totals all charge amounts associated with these charge codes on matching invoices. If the total amount does not meet or exceed the minimum amount, the system will charge the minimum charge amount.

Header Fields

The header record identifies the conditions under which the system should calculate the minimum charge amount, as well as the actual minimum.

Customer/Facility/Bill To/Bill Group: The matching criteria to determine which invoices should be reviewed for minimum charge amounts. Only invoices that match these values will be considered.
Only the customer value is required.
Invoice Type: The type of invoice associated with this minimum charge.
Activity ID: The activity for which you are calculating minimum charges (if applicable). For example, if you want to calculate this minimum for receipt activities, select the Inbound Complete activity.

Level

The level at which the minimum charge should be calculated. You can charge minimums at any level from an individual charge code (the minimum applies to one individual charge) up to an entire invoice (the minimum applies only if the entire combined total of all the charges on the invoice does not meet or exceed the minimum amount). Depending on the type of minimum level you select, the system may use the individual charge codes identifies in the detail area, or it may ignore the individual charge codes.

Minimum Levels Supported:

Charge Minimum (based on specified charge codes). For each charge code listed in the detail area, the system calculates the minimum charge amount against each individual charge that does not meet the minimum requirement. This may result in multiple minimum charges for a single order, line, or invoice.
Order Level. The system calculates the minimum charge against on the total charges of the entire order (you do not identify individual charge codes for this level). Each time you complete an order, the system charges no less than the minimum charge for processing the order. Order-level minimum charges ensure that you don't lose money through administration of low charge inbound and outbound orders.
Order Charge Code Group. (based on specified charge codes)The system calculates the minimum charge against on the total charge amount for the order that is associated with the individual charge codes on the Minimum detail record. Unlike the Order Level, the system does not look at the total order amount, but uses the sum of the charges from the charge codes identified in the detail area.
Order Item Level. The system calculates the minimum charge against on the total amount of all charges associated with a specific item on an order. This ensures that a facility receives the proper revenue for handling individual products.
Order Lot Level. The system calculates the minimum charge against the total charge amount for each lot on the order. This ensures a minimum charge for handling different lots of the same product.
Order Line. The system calculates the minimum charge against the total of each line item on an order. Each line is reviewed individually.
Invoice Minimum. The system calculates the minimum charge against the total charge amount of the entire invoice.
Invoice Charge Code Group (based on specified charge codes). The system calculates the minimum charge against on the total amount for the invoice that is associated with the individual charge codes on the Minimum detail record. Unlike the Invoice level, the system does not look at the total invoice amount, but uses the sum of the charges from the charge codes identified in the detail area.
Invoice Item Level. – total charges for each item on an invoice Group. The system calculates the minimum against the total amount of all charges associated with a single item group on an invoice.
Invoice Facility. The system calculates the minimum charge against the total amount of all charges for a specific facility on an invoice.

Charge level and Order level minimums are created at the time the charges are created. The invoicing minimums are applied when the invoices are created.

Minimum Charge Code

The charge code to use to represent a minimum charge on an invoice.

Minimum Charge Amount

The actual amount of the minimum charge. Charge amounts must meet or exceed this amount (based on the minimum charge level). If charge amounts fall below this amount, the system calculates the difference between the accrued charge amount and the minimum and records the charge on the customer invoice using the minimum charge code information.

Minimum UOM

The UOM you want to use to track minimum charge information. The system uses this UOM for invoicing; to avoid confusion, use a charge code specifically created to identify minimum charge amounts (such as the system standard MIN).

Effective Date

The date on which this minimum charge amount becomes effective.

Detail Fields

At the detail level, you can identify specific charge codes for this minimum charge record. These charge codes are only used for the Charge Minimum, Order Charge Code Group, and Invoice Charge Code Group levels. If you are not using one of these charge levels, you do not need to define any detail information.