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 criteria 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 packs, the manufacturer will charge 0.03USD/bag for the remaining bags of 10,000 packs (e.g. the desired order quantity is 6,000 packs, 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 Additional 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 use Additional Fees information in SO
Sales Dept. can access Additional Fees information through SO. Basically, Additional Fees information in SO works the same way as Additional Fees information in PO. Sales person will be able to choose one or many Additional Fees information records and add them to SO Table if necessary. The Additional Fee information is not automatically transferred from PO to SO. Similarly, Additional Fee information is not automatically transferred from SO to PO.
How to add Additional Fees related to Vendor in SO
These fees are uploaded by Purchasing Dept. for each Product - Variant - Packaging, and will be shown in “Additional Fees” Table under the product in SO.
If the combination of Product - Variant - Packaging requires an additional fee to be paid, it will also pop-up as a notification in the product table in SO when the relevant Vendor incurring the fee is chosen.
1. Locate the relevant SO.
2. Click ‘Edit’.
3. Inside the SO product line, open ‘Additional Fees’ tab.
Note: Important Pre-condition: make sure that a purchase price (e.g PO Quoted price, Pricelists) has been selected previously for the product in the SO line. Otherwise, additional fees feature will not work.
Note: Additional Fees rows will be displayed automatically if there is existing data of fees in the System matching the conditions of the SO (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 is needed to charge the Customer, Salesperson can add Additional Fee into the SO.
4.Select the fee by clicking the checkbox on the left.
5. Click 'ADD IN SO LINES' button. The System will add the fee(s) as service(s) in the SO table, and Salesperson can add Profit % if necessary (confirm with Sales Manager).
Note: In order to get the approved final cost for a fee, the information has to be provided to Sales Manager and can only be sent in SO chatter not Project task chatter.
6. Click ‘SAVE’. You will see the additional fees added to the SO with the relevant product code.
Note: The description can be manually adjusted by Salesperson in order to make it clear for Customer what the fee is charged for.
How to add Additional Fees not related to Vendor in SO
The below listed fees, unlike the Vendor-related additional fees, have to be added by Salesperson in SO manually. All fees total cost must be confirmed by Sales Manager unless it is a fix-price fee where AdvaCare cannot change the final cost.
Fees related to Logistics Dept. and shipping process
Depending on how the shipping process is handled including the payment terns in PO between AdvaCare and Vendor, there are cases when the following fees can be incurred:
1) Transportation Cost from Vendor to AdvaCare warehouse/ Port of Departure:
Purchasing Dept. is to inform Salesperson of the aforesaid fees in case Vendor charges AdvaCare for transportation within China/India. The cost is provided by Purchasing Dept., however, Salesperson is to add the fee in SO.
2) Telex Bill of Lading:
AdvaCare can apply to issue Telex BL in case it is requested by Customer or there is a difficulty with delivering original BL. The cost is provided by Logistics Dept. Salesperson is to add the fee in SO and total cost charged to the Customer must be confirmed by Sales Manager.
3) Pallets:
Some shipments/Customers may require pallets for the transportation of the goods. Salesperson must check with Purchasing Dept. the cost the Vendor provides pallets and add this fee manually in SO. The total cost charged to the Customer must be confirmed by Sales Manager.
Note: If the pallets are added, Salesperson must check with Purchasing and Logistics Dept. if CBM is calculated with the pallets included. Adding pallets will increase the CBM.
Fees related to Customer Import requirements
Depending on Customer’s origin and import requirements of the country of destination, the additional documents/processes can be required. The listed fees below are reference example, and due to the constant changes in import process regulation, Salesperson has to check with Customer on the requirements on a per order basis by sending “Shipping Instructions” for every order’s shipment as soon as the packaging is confirmed by the Customer:
1. ECTN form (Guinea requirement)
2. CRIA Report (Nigeria requirement)
3. CCVO Certificate (Nigeria requirement)
Note: If the required certificate/inspection is fully paid by AdvaCare and free of charge for Customer, there is no need to add this fee in SO.
These costs are provided by Logistics Dept., however, Salesperson is to add the fee(s) in SO.
Late Payment fees / Storage fees
Refer to SOP ‘Generating Accounting Invoices”
A: Generating Accounting Invoice for Late Payment Fee
B: Generating Accounting Invoice for Storage Fee
Packaging fees for packaging printed by AdvaCare
If packaging elements are being printed by AdvaCare instead of Vendor which produces the product, this fee will not be shown in the table for ‘Additional Fees’ under the quoted product in SO. Instead, Salesperson has to send a task to Designer to get the cost for printing. If the Customer is to be charged for these printing costs, the Salesperson must add the cost in SO manually. As all additional costs, this cost is to be confirmed with Sales Manager.
1. To add the mentioned fees in SO, Salesperson has to check if this fee exists in the system by searching by product name ‘fee’.
2. After locating the relevant fee, the below window will be opened:
3. If the required fee is not located in the system, Salesperson will choose a universal fee with code [FEE-001].
4. In the opened window, Salesperson needs to change the Description and adjust the cost. The Description must include in detail what the fee charged is for. The Description information is what will be shown in the Sales Contract and Proforma Invoice when exported:
