Setting Up 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.

You can also add additional costs to transactions without using additional cost codes.

To set up an additional cost code, you create a record that includes:

• A unique code of up to six characters to identify the cost.

• An optional description of the cost.

• The vendor number (optional).

• The amount of the cost (optional).

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

• 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.

• 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 form.

• The tax authorities and purchase tax classes that apply to the cost, if any.

•  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 forms in Common Services.

Creating additional cost records. Choose the Additional Costs icon from the Setup folder to create records for the additional costs in your Purchase Orders system.

For more information about how Purchase Orders handles additional costs, see Entering additional costs on receipts.