About Additional Cost Codes

You can use additional cost codes to identify the extra costs, such as for shipping and handling, that your vendors or carriers charge on the orders they send to you.

When you enter the codes with receipts, invoices, credit notes, or debit notes, the corresponding information is displayed for you to accept or change, as needed. More...

You can also add additional costs to transactions without using additional cost codes. For more information, see About Entering Additional Costs on Receipts.

Creating Additional Cost Records

You choose the Additional Costs icon from the Setup folder to create records for the additional costs in your Purchase Orders system. Each record includes:

  • A unique code of up to six characters to identify the cost.
  • An optional description of the cost.
  • The vendor number (optional). More...

    • Because you can create additional cost records by vendor number, you can set up separate records for the additional costs assessed by particular vendors. When you use one of these additional cost codes with a transaction, the specified vendor number and associated tax group are automatically displayed.

    You can also set up additional cost codes without vendor numbers, then use the code for any vendor, entering the vendor number and tax group when using the cost in a transaction.

    Tip: If you use multicurrency accounting and you do not assign a vendor number to the cost, you specify the currency in which you pay the cost. You can use the code for all vendors who use the same currency.

    If you assign a vendor number to a cost, the vendor's currency is displayed, and you cannot change it.

  • The amount of the cost (optional). More...

    • If you are creating an additional cost code for a standard charge, you can enter the amount of the charge. When you select the additional cost code for a transaction, the set amount is displayed, but you can change it.

    If the additional cost amount varies, you may prefer to leave the amount at zero in the additional cost record, then enter the amount with each transaction that uses the cost.

    Note: If you use multicurrency accounting, you type amounts in the currency specified for the cost.

  • The method by which you prorate the cost over items on a receipt. More...

    • You can choose to:

    • Expense the cost separately from the items in the transaction (no proration).

    • Prorate the cost to item details by quantity, cost, or weight.

      Note: When you prorate a cost by quantity, the program does not convert units of measure to stocking units. For example, if you order 12 boxes and 12 single units of the same item on two separate detail lines, the program prorates additional costs over 24 units, regardless of how many single units are contained in a box.

    • Manually calculate and add the costs to the item details in a receipt.

    For documents created in version 5.3A or earlier multicurrency ledgers, you can use this method only when the vendor for the transaction uses the functional currency.

  • The general ledger expense account to which you post amounts for costs you expense (do not prorate).
  • The method you use to reprorate additional costs that were prorated to items that you returned. More...

    • Use the Reproration field to specify whether to reallocate costs from items you returned to other items on the same receipt.

    You can choose to:

    • Leave the additional cost (that was prorated to the returned items) as originally allocated in the receipt.
    • Prorate the additional cost from the returned items to the remaining items on the receipt.
    • Expense the additional cost that was originally prorated to returned items to a general ledger account you specify in the additional cost record.
  • The general ledger account to which you post cost amounts on returns when you expense the costs (that is, you do not prorate them).
  • Optional field information if you added fields to the Additional Cost screen.
  • The tax authorities and purchase tax classes that apply to the cost, if any. More...

    If the cost is taxable, you specify all the tax authorities and purchase tax classes that apply to the cost, so that Purchase Orders can calculate correct tax amounts for you when you enter transactions for the cost. When you prorate taxable additional costs, the tax amount is added to the additional cost, then the total amount is prorated.

    You select from the tax authorities and purchase tax classes you have set up for your company in the Tax Services screens in Common Services.