DBD: Order Processing Automatic Order Requisition Charges

DBD: Order Processing - Automatic Order And Requisition Charges

Global Auto Requisition charges will apply to all customers. Once a single Auto Requisition charge is created that is customer specific, then only these customer specific charges will apply to this customer.

The possibilities here are tremendous.

Path: DB Distributor > Print Management > Setup > Other > Setup and Parameters > Requisition Charges (CHUI: FMS-S7)

Field Reference

• Customer Code
  • This field can be left blank for companies that are not divisional. These charges will apply to all customers unless you have Customer Specific Charges.
  • For companies that are divisional, you would assign charges that apply to each division. These charges will then apply to all customers in this division unless you have Customer specific charges.
  • You can setup Customer Specific Charges by entering a customer number here; these charges will take priority over global charges. Global charges will not be applied to this customer, if you also wish to have global charges applied to this customer, these will need to be setup.
• O/P Special Charge — These are Special Charges that have already been setup on your system
• Billing Description — You can customize it here to print on Invoice to Customer
• Price — This is the Sales price to customer
  • P-Minimum — If applicable — Minimum Extended amount that may be billed to the customer.
  • P-Maximum — If applicable — Maximum Extended amount that may be billed to the customer.
• Cost or SLSP GP Adj
  • Cost — this field is treated as a Cost Line on the Customer Invoice when the field 'Should this line be an Acct (Accounting) Cost' is checked
  • SLSP GP Adj — To reduce the Salesperson's Gross Profit, enter as a negative value
• Comm Code
  • For companies that calculate commission by line, a specific commission code can be assigned here for this charge
  • If field is left blank, all other commission hierarchy will apply
• Calculation Method
  • Percent of Sale
  • Fixed Amount
  • Percent of Value
  • Percent of Cost
  • Table — to generate a fixed charge based on Varied Sales Levels, or a charge based on a percentage of Sell (see Table Charge example below)
• Apply to Order Type
  • Requisitions — Non-Billable releases from Warehouse — Customer Owned Goods only
  • Warehouse Releases — These can include Customer owned and Distributor owned goods released from Warehouse
  • Invoices — These will be your sales orders
  • Can select 1 or all of these selections
• Memo Charge — Not used
• Omit from B/O's?
  • Charge will be applied to initial Invoice for this order and will not be applied to subsequent invoices.
  • Charge applies to entire order.
  • This will not exclude this charge when a specific line is in a backorder situation.
• Warehouse Code - Out — Enter code to apply this charge to only this specific warehouse location
• Inventory Ownership — Distributor owned or Customer owned; this option will apply charges to all warehouse locations in this specified group
• Apply to P/C Set
  • Can be used to apply a charge if any item meets the Product Code Criteria
  • See Example section below for more information.
• Warehouse Code - In
  • This applies to Sales Orders that will bring inventory into a Customer owned warehouse location
  • Will only be generated if Order Type is for Invoices
  • Used to apply charges up front to your customer or as a gross profit adjustment to your Salesperson for the cost to warehouse these goods.
  • Will apply to entire order line — even if only a portion is sent to warehouse
• Group Code — This allows you to Include/Exclude these charges from specific items. See Group Code section below for more information.
• Apply to Terms Code — Allows a charge to be calculated based on the Customer's Terms Code (Example: apply to a Terms code designated as a Credit Card). The Terms code field has priority over other options on this screen and will apply based on the order type.
• Should this line be an Acct Cost?
  • When this box is checked, will affect how the system looks at the value placed in the Cost or SLSP GP adj field.
  • Checked, value will create a line item on the invoice.
• Don't Print on Invoice if 0 Amount?
• Apply to Supply Items? — Not applicable
• Apply Min/Max to GP Adj, or Cost?
• Only Apply to BO Fill Report Orders? This applies automatically to the enhanced backorder fill report; an additional field would need to be selected when using the Backorder Fill report (see below). All orders printed as a result of the Enhanced Backorder Fill report will be flagged.
  • Only Flagged Orders — Charge will only apply if this order was processed thru the Enhanced Backorder Fill report or Flag checked on Backorder Fill report
  • All Orders — Charge will be applied to all orders
  • Flagged & this req charge — For orders flagged as Backorders, this is the only automatic charge that will be applied

• Cost Code — Not used
• Prompt before adding Charge to Invoice?
  • Checked, operator will have an option to accept charge to apply at invoicing time
  • Unchecked — Recommended if you do create automatic invoices thru any gateway
• Only Apply to lines that pull from a Warehouse? This option resolves the issue with mixed orders where some lines contain a PO code. The following conditions apply if this option is checked:
  • If the type of charge is Per Line or Per Carton, lines that contain a PO code will be ignored
  • If the Type of Charge is Per Requisition and the Calculation method is a percentage type, lines that contain a PO code will be ignored. If the Calculation method is a Fixed Amount, then the charge will only be triggered if there is at least one line that pulls from a warehouse — then the entire Fixed Amount will apply for this order
  • If there are no lines being pulled from inventory, no automatic charge line will display on the invoice

Automatic Order Charge Examples

Here are a few examples that can be used in setting up the Requisition Charge Setup. This can be used to add an additional charge automatically at invoicing time. This can be setup to only apply to certain Order types (See the 'Apply to order type' field).

These are just suggestions. Please set them up and see if this provides what you are looking for.

Line Charge

This example will provide a $4 sale to your customer for each line released from a Customer Owned warehouse. This is setup for both Requisition and Warehouse Release order types.

This charge also utilizes the Min/Max option to apply a minimum charge of $8 and a maximum of $20, which can help to discourage the customer from placing a lot of 1-line orders.

Handling Charge Adjustment as a Salesperson GP Adjustment

Here is an example of a 10% adjustment to the cost of a sales order. You may use this as a processing charge. The Apply to Order type 'Invoices' will only pass this charge along to orders entered as Sales Orders.

Table Charge

In this method, the Calculation method is setup for a Table option to apply as Freight on the invoice based on a percentage of Sale on the invoice. The user can enter a table showing the sales amount and the associated amount to use for the Automatic Requisition. Click the box Create Table to set up your values.

Also, in this case, since a TERMS code of 'CC' has been entered, this would only apply to invoices with the 'CC' Credit Card terms code.

Table Example as a Percentage of Sale

Table Example as a Flat Rate Based on Sale

Group Code

This Group Code provides the ability to apply a "list" of items to a specific Automatic Requisition Charge and have the charge calculation program include or exclude those items when doing the calculation during Accounts Receivable Invoice generation. For this purpose, an item can be a custom item, stock item, or special charge.

The Requisition Groups are setup in the Requisition Groups Maintenance panel.

GUI: Print Management > Setup > Other > Setups and Parameters > Requisition Groups

CHUI: Menu FMS, Option T1

The Requisition Group Maintenance Panel is based on setting up a group code of up to 10 characters.

To add a new Group and items: Enter the group code. If this is an existing group and it already contains items, then the items will be displayed on the right side of the panel.

Upon entering a group code, the user will be positioned at the Item Type drop down box. The item type entries are "Custom", "Stock" and "Special Charge", which allows custom items, stock items, or special charges to be displayed in the left side of the panel respectively. If "Custom" is selected from the drop-down box a valid customer code needs to be entered.

Based on the selected item type, a list of item entries is displayed on the left side in the panel. The user can add any entry from the list on the left to the group by double-clicking on it and then clicking the "Add" button. To delete an item from the group, double click its entry in the list on the right. The "Delete" button will be enabled. Clicking "Delete" will remove the item from the group.

The Requisition Group data is stored in the FTZ file.

Once requisition groups and items have been setup, the group code can be added to a requisition charge in the Requisition charges panel. If a group code entry is made, the option to include or exclude the group's items must be selected. The default is to include the items in the group for req charge calculation purposes.

At the time of invoice generation, when requisition charges are calculated, there will be a check to see if a group code was entered for the current req charge. If not, processing will continue as usual. If a group is detected, and if the group's items are to be included, the charge will be calculated on only those items in the group. If the items are to be excluded, the items in group will not be included in req charge calculation.

This example utilizes the Group Code to create a charge that will only be applied to a select group of items. This is based on the Value of the goods because these could include Customer owned items.

Only Apply to Lines Pulled from a Warehouse

This option resolves the issue concerning "mixed" orders, typically eCommerce type orders, where some lines contain a PO code (ordering from a vendor) and some lines pull from inventory.

The following conditions are applicable if the option is set:

• If the Type of Charge is Per Line or Per Carton, lines that contain a PO code will be ignored.
• If the Type of Charge is Per Requisition, and if the Calculation Method is a percentage type, lines that contain a PO code will be ignored.
• If the Calculation Method is a Fixed Amount, then the charge will only trigger if there is at least one line that pulls from a warehouse, and the entire Fixed Amount will apply for that charge.
• If there are no lines being pulled from inventory, no requisition charge line will display on the invoice.
• Note: Since special charges are not inventory items, they will not be considered in any way if this option is selected.

Apply to Product Code Set

Apply to PC Set allows the user to enter a valid Product Code Set.

When the Automatic Requisition Charges are calculated, the program will check to see if ANY line on the order contains ANY of the product codes that are in the Code Set. When this criterion is met, the Automatic Requisition Charge will be created. This works the same way for both Automatic Requisition Charges generated based on the entire invoice and those generated based on individual lines.

This option is only looking to see if this Product code exists on any line of the order and will apply this charge.

Apply to Back Order Fill Items

The "Flag a Customer on the Backorder Fill Report Option" is used along with this question in Automatic Requisition Charge Maintenance.

Available options:

• Only Flagged Orders — Only orders processed thru the Backorder Fill report are eligible for this charge
• All Orders — this charge will apply to all orders
• Flagged and this Req Charge — This will be the only charge applied and will only apply to orders processed with the Back-Order Fill option.
  • NOTE: In this case, even if other Automatic Charges meet the criteria for appearing on an invoice, they will NOT be applied. Only the one Automatic Requisition charge will be applied to the invoice.

Creative Example That One Company Used with This Backorder Option

The user may use these two new options together to create one-time charges on backorders.

For example, on each order, the user wants to charge a one-time Automatic Requisition Charge. For backordered items with specific Product Codes, the user does not want to charge this Automatic Requisition Charge a second time.

Here is how the scenario could be automated using these new options:

The user sets up an Automatic Requisition Charge to be applied to the original order and calls it ORIGINAL_ORDER.

The user can also set up a second, identical Automatic Requisition Charge called BACK_ORDER that uses a Product Code Set of Product Codes. On this one, the option is set to 'O' for ONLY, so that the Automatic Requisition Charge will ONLY be applied if the order appears on the Backorder Fill Report and if it contains one of the Product Codes in the Product Code Set.

The first time the order is billed, the ORIGINAL_ORDER Automatic Requisition Charge will be applied.

When the user receives the inventory needed to fill the second order, he answers "Y" to the question "Flag Customers for Auto Req Charges?" and sets a customer range that will include the customer who is to receive the Automatic Requisition Charge that is coded to be for Back Order Fill Report Orders.

When the backorder is billed, if one of the items on the order is found in the Product Code File that is linked to the Automatic Requisition Charge, and the order appears on the Back-Order Fill Report, the BACK_ORDER Automatic Requisition Charge will appear. Because the user set the "Only Apply to BO Fill Rpt Orders?" question to "O", only that charge will appear on the invoice.

Frequently Asked Questions

Q: How does DemandBridge decide whether a global or customer-specific charge applies?

A: If a customer-specific charge exists for a customer, it takes priority and global charges won't apply to that customer unless you also set up the global charge for them specifically.

Q: What's the difference between the Cost field and the SLSP GP Adj field?

A: Cost is treated as a Cost Line on the customer invoice when 'Should this line be an Acct Cost' is checked. SLSP GP Adj reduces the salesperson's Gross Profit when entered as a negative value.

Q: What does the Table calculation method let me do?

A: It lets you set up a table of sales-amount ranges, each tied to either a percentage of sell or a flat charge amount — useful for tiered freight or handling charges.

Q: What is the Group Code used for?

A: It lets you include or exclude a specific list of items (custom, stock, or special charge) from a requisition charge's calculation, set up in Requisition Group Maintenance and stored in the FTZ file.

Q: When would I use 'Only Apply to lines that pull from a Warehouse'?

A: For mixed orders (common in eCommerce) where some lines have a PO code (drop-ship from vendor) and some pull from inventory — this ensures the charge only considers the warehouse-sourced lines.

Q: What does 'Apply to P/C Set' actually check?

A: Whether ANY line on the order contains ANY product code in the specified Product Code Set — if so, the charge is created, regardless of whether the charge itself is invoice-level or line-level.

Q: What's the difference between the three Backorder Fill options?

A: Only Flagged Orders applies the charge only to orders processed through the Backorder Fill report. All Orders applies it to every order. Flagged & this req charge means that for backorder-flagged orders, this is the ONLY automatic charge applied — no other automatic charges get added, even if they'd otherwise qualify.

Q: Can I set up a one-time charge that doesn't repeat when a backorder is later filled?

A: Yes — set up one charge (e.g., ORIGINAL_ORDER) for the initial billing, and a second charge (e.g., BACK_ORDER) restricted to a Product Code Set and flagged as 'O' for Only on BO Fill Report Orders, so it only fires on the backorder fill and doesn't double up with the original charge.

Tags: order-processing, automatic-charges, requisition-charges, group-code, backorder-fill, DB-distributor