Additional Fees in PO

| 4 minutes

Additional Fees are additional costs that need to be considered in any Order and included in Invoices/Bills.

Additional Fees can be categorized in 2 types:

  • Printing Fees;
  • Other Fees.

There are 4 criterias that Printing Fees can be based on and accessed through a relevant PO/SO:

  • Color - printing fee charged per color. Restriction value in this case will be the minimum amount of colors that manufacturer can make for free (for example, 3 colors of the designs will be free, then if there are 4 or more, each color will have a printing fee of 100 USD).
  • Quantity - printing fee charged based on order quantity. For example, if quantity is below the MOQ the printing fee will be 300 USD.
  • Quantity / Color - printing fee charged based on order quantity and amount of colors. For example, if quantity is below the MOQ the printing fee will be 75 USD per color.
  • Bag / Quantity - printing fee charged based on bags quantity. For example, if quantity of bags is below 10,000 pcs, the manufacturer will charge 0.03USD/bag for the remaining bags of 10,000 pcs (e.g. the desired order quantity is 6,000 pcs, the manufacturer will charge for the remaining 4,000 bags in the amount of 0.03USD/bag = 120 USD).

It is important that Purchasing Dept. records and maintains this information in the System. If Additional Fees are updated, then the System will notify the Purchasing Person and Salesperson the moment they are detected in PO/SO. The notification will help both departments to not miss this information and make sure that these expenses are recorded, and will help Sales Dept. to inform and charge the Customer beforehand.

This SOP will explain how to handle all the Additonal Fees types, where to find them and how to update them.

Types of Additional Fee

Due to complexity of Additional Fee information that changes from order to order, the System will categorize 2 types of Additional Fee that are stored in same way and in same place.

Printing Fee

Printing Fee is the Additional Fee information that is uploaded in the System in reference to a specific Product - Variant - Packaging, and connected to a Vendor.

Printing Fees are created considering the product, its packaging, vendor information and based on the criteria. For example, from the screenshot above, that specific product Auto-Disable Syringe (Medical Device, Injection Instrument, 0.5ml, w/o Needle, Luer Lock, 3-Part) with packaging 1 piece/blister pack, 100 packs/box from that specific Vendor Test Vendor and based on the number of 5 colors, will have a determined fee, so we can assume that for this combination of data product-packaging-vendor-criteria will have similar printing fee amount and it can be used every time it's required for any SO/PO.

It is important to know about printing fees to be able to estimate any extra charges for the products before the Customer pays the down payment. Salesperson needs to know of any printing fees involved to be able to charge the Customer. Printing Fees can be used by both Sales Dept. and Purchasing Dept. and will be reflected in both SO and PO.

Other Fees

Other Fees are any other fees not related to printing. Similarly, Other Fees are also recorded in the System in reference to a specific Product - Variant - Packaging, and connected to a Vendor.

How to check Additional Fees information in PO

Purchasing Dept. can access Additional Fees information through PO. Basically, Additional Fees information in PO works the same way as Additional Fees information in SO. Purchasing person will be able to choose one or many Additional Fees information records and add them to PO Table if necessary. The Additional Fee information is not automatically transferred from SO to PO. Similarly, Additional Fee information is not automatically transferred from PO to SO.

1. Locate the relevant PO and click ‘Edit’.
2. Inside the product line, open ‘Additional Fees’ tab.

Note: Additional Fees rows will be displayed automatically if there is existing data of fees in the System matching the conditions of the PO (Product/Packaging/Vendor/Criteria).
Note: If there are no additional fees displayed in the table, it means there are no additional fees for this product-packaging-vendor.
If additional fees are displayed in the table and it's needed to pay the Vendor at this moment, Purchasing Person can add Additional Fees into the PO.
Note: Adding Additional Fees into the PO is not necessary when Purchasing Person is working with PO Quoted Prices neither PO Renegotiated Prices
3. Select the fee by clicking the checkbox on the left.
4. Click 'ADD IN PO LINES' button. The System will add the fee(s) as service(s) in the PO table.
5. Click ‘SAVE’.

How to create Additional Fees from PO line

On the other hand, if Vendor required the inclusion of new additional fees to be considered for the future purchase of the product, Purchasing Person has the option to create an Additional Fee directly from the PO line. However, the standard way to create a new additional fee can be done following the instructions of the document HANDLING AFE.

Note: The creation of new additional fees from a PO line is just an alternative method, usually used when Purchasing person is working with excel files in PO Quoted Prices.
1. Inside the product line, open ‘Additional Fees’ tab.

2. Click 'ADD A FEE' button.
3. Select 'Type' - printing, other.
4. Select the 'Based on' - color, quantity, quantity/color, bag/quantity.
Note: selecting quantity or bag options, new fields will be displayed.
5. Fill the quantities fields, depending on the value selected in the previous step.
6. Fill the 'Fee' field which refers to the amount of the cost.
7. Select the 'Currency'.
8. Fill the 'Fee Description'.
9. Click ‘SAVE’.
10. The System will create a new fee in the master data of Addiitonal Fees.
11. Purchasing Person MUST send a task to Salesperson to notify of any Additional Fee.
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