Navigation path: Procurement and Sourcing/Setup/Charges/Charge code
Procurement charges codes allow a user to maintain charges information such as freight, insurance or handling fees that can be added to a purchase order or invoice. For example, your organization may need to pay freight, insurance or handling on a purchase order, and those amounts are required to be itemized separately on the purchase order. In that scenario, a user can leverage a charges code and apply it to the purchase order. The charges code itself determines whether those added amounts are posted to expense accounts, or whether they are added to the cost of the items.
See below an example for a freight charges account that is charged to an expense account.
Charges can be applied manually at the purchase order/invoice or auto charges can be set up. If a certain charge code always applies to a certain vendor or vendor item/item group combination, a user may want to set up auto charges. Auto charges will be automatically applied to the purchase order when the vendor specified on the purchase order and/or the vendor and item/item group combination specified on the purchase order meet the criteria on the auto charges configuration.
See below an example for a 50 USD handling auto charge for vendor account 1001.