Handling AFE

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.

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 create an AFE