The Purchase Add-on Charge method may be used for handling partial vendor prepay. This situation is designed for those who do not intend to pay the remainder of their vendor contracts until shipment is received.
Setup
- Set up Purchase Add-On Charges at Accounting / Setup / Inventory / Purchase Add-on Charges. Select Add to create a new Purchase Add-On Charge.
- Enter the ID and Description for the Add-on Charge and select the appropriate Rate and Bill type.
- The Rate type can be edited on the Purchase Order depending on the contract type being prepaid. If a Classification is selected, the Add-on Charge defaults onto any line item containing a product with a matching Classification.
- Select the Included in Vendor’s Bill option to influence the amount paid.
Note: Percent or Flat Rate may also be used following the rules below. If used, the Percent down and amount due and the Flat Rate down and amount due must be manually calculated.
Percent Scenario
- Add a Purchase Order at Accounting / Inventory / Purchase Orders and select the Prepay option on the Add a Purchase Order window.
- Select the Products and set the $/Unit for each.
- Double-click in the Add On column to open the Purchase Add-on Charges window and double-click the Charge ID column heading to select the appropriate Purchase Add-on Charge.
- In the Purchase Add-on Charges window, set the Rate as the unpaid percent as a negative and set the Calculate As type to Percent. Select the P checkbox.
- Double-click on the Charge ID column heading again and select the same Purchase Add-on Charge.
- Set the Rate as the unpaid percent as a positive and set the Calculate As type to Percent. Do not select the P checkbox for this line.
- Choose Calculate. Each add-on charge row now displays the Charge $ to apply to the Vendor’s Bill which is the total amount due to the vendor upon delivery. Select Save to return to the Purchase Order.
- Select Apply. The Purchase Order now displays the product at the contracted price with the prepaid amount. The Add-on Charge reflects the amount due to the vendor upon delivery.
As Purchase Receipts are entered against the PO, the Add-on Charge follows through based on the Purchase Order set up and quantity received. The Purchase Receipt can then be imported into a Purchase Invoice. The Add-on Charges set up on the Purchase Order follow through the Purchase Receipt into the Purchase Invoice.
If the Purchase Order is not applied to the Purchase Receipt, the Add-on Charge won’t flow through but can be re-entered on the Purchase Invoice.
Note: The Per Billing Unit or Flat Rate Down can also be used following the rules above. The Per Billing Unit and Amount Due or the Flat Rate $ Down and Amount Due will have to be manually calculated.
