In our previous HowTo, we learned how to set up fixed additional charges and used that for invoicing freight costs to our customers. To ensure fair pricing, the company decided to automatically apply freight charges to sales orders based on a percentage of the total order value.
Let’s check how to set a percentage-based Additional Charge with a minimum and maximum limit.
Open Additional Charges.
Press + New in the top menu.
Enter Freight % in the columns Code and Description.
Open Allocations in the top menu referring to the newly created code.
Enter the Resource No., which you expect to be used in the Sales Order for the freight charges.
Select Ratio % in Calculation Type.
Enter a percentage value e.g. 2% in the Ratio % (Value of Goods) column to define what should be applied to the total document amount.
Set a Min. Amount (LCY) and Max. Amount (LCY) to define the minimum and maximum charge limits to ensure the freight cost does not go below or above these values. For example, fill in 25 as minimum and 250 as maximum.
Open Shipment Methods to assign the created code to the relevant shipment method. Select the created Freight % in the Additional Charge Code column for the relevant Shipment Method, so the setup applies automatically when the Shipment Method is selected in Sales documents.
Now, to test the setup, create a Sales Order. Select the Shipment Method Code, to which you assigned the Freight % Additional Charge. Make sure all other mandatory fields in the General FastTab are also filled.
Enter at least one Item line with a Quantity.
After your Sales Order is entered, Release it and verify that the freight charge is calculated as a percentage of the total amount, respecting the minimum and maximum limits.
Now, you can invoice freight charges fairly to your customers by applying them automatically as a percentage of the total order value, within minimum and maximum limits.
