Charge Codes - Calculation Options Tab

Access this tab using Maintain>Accounts Receivable>Charge Codes.

Use this tab to define the pricing method for the charge codes.

 

Calculation Information: Keep in mind that once a code is saved, the calculation method cannot be changed. The code must be deleted and reentered.

• Calculation Method: Enter a calculation method, or select one from the drop-down list. Choose from the following options:
  • Fixed Amount (FA), Fixed Price per Unit (FP) - For FA and FP, enter an amount in the Value box. That amount is applied to the charge code either as a fixed charge (FA), regardless of units sold, or a unit price (FP), which is then multiplied by the units sold to calculate the total charge.
  • Variable Price per Customer (VC) - For VC, do not specify a value or price to associate with the charge code. The price is entered on the invoice when applying the charge code, since the price varies depending on the customer to whom the item is sold or supplied.
  • Variable Price per Unit (VP), Alternative Variable Price/Unit (AV) - VP and AV allow you to calculate based on incremental units. You can set up a calculation table in which you specify the price depending on the number of units sold. Therefore, customers can be given a more favorable price if they buy or use more units. VP and AV also give the ability to assess a Unit Price in addition to a Fixed Charge. An example of this is a utility bill. There is a service charge assessed regardless of the usage. Additionally, a price is applied per unit for usage, and the unit price changes depending on the number of units used.
  • Percent of Account Activity (PA) - For PA, enter a Percentage to calculate based on the net of the selected segment's current activity for the selected period (Period for Calculation). The GL Code is always required for this method. Period for Calculation is used to select rolling dates for calculations.
• Value: If a calculation method of FA or FP is selected, this box becomes available. It is optional, so either enter a value or leave it at zero.
• Maximum Number of Units Billable: If a calculation method of VP or AV is selected, this box becomes available. The Maximum Number of Units Billable is used to validate the data entered in the Pricing table. This number must be equal to the largest number in the Maximum Units column in the Pricing table.
• Percentage: If a calculation method of PA is selected, this box becomes available. Percentage is used to calculate based on the segment's current activity for the selected period.
• Period for Calculation: Select a period from the drop-down list to use to calculate the charges. You can choose from This Month, Quarter, or Year; or Last Month, Quarter, or Year. This box is only available if PA is selected as the calculation method.

Pricing Table Fixed/Cumulative Charge, Unit Price, Maximum Units: If the VP or AV Calculation Method is selected, this table becomes available. Enter a fixed or cumulative charge, a unit price, and the maximum number of units to which those charges apply. This allows customers to be given a more favorable price if they buy or use more units.

Filter: If the PA calculation method is selected, the system displays this table in place of the Pricing table. Select the segments to apply for the account activity.