hi

[Former Member]

when do we add extra charges to a customer......

what is fixed extra charge and variable extra charge

[Former Member · Accepted solution]

Hi,

first thing is we need to know the scenario to help you give a proper answer. From the config point of view, since its some price which you want to add dynamically, perhaps at the sales order level then you need to create a Z condition type and make it part of your pricing calculation and include it in your net price.

Now your contract or sales order price may be say 100 rs and you have added 5 rs at the sales order level for this Z condition for variable price, the total would be 105 rs.

this is on the SD side, but you need to sit with the FI in understanding if this 5 Rs additional charge is your revenue or cost, where you are going to post it in FI, how are taking in COPA.

regards

sadhu kishore

[Lakshmipathi]

Dear Priyaraj

It is always better if you explain your scenario and then ask question, it will be easy for others to reply to that particular scenario.

In general, I can say when we add extra charges to a customer. When you have already entered into an agreement with your customer to supply a particular product at a particular price say INR 500, but due to some unexpected price hike in the procurement of your basic components which has forced you to charge extra on your final product, then in that case, you need to approach your customer for the differential pricing.

I dont know what do you mean by "extra" and why you are asking for that.

Anyway, we can say A Fixed Charge is a periodic charge that does not vary with business volume (as insurance or rent or mortgage payments etc.)

A Variable Charge is that the charges keeps fluctuating from time to time. Like from SD point of view, some companies will not enter into contract with the transporter but negotiate terms and conditions for each and every shipment.

Thanks

G. Lakshmipathi

[Former Member]

i am new to SD . i came across the term extra charge.

i dont have any idea of how this extra charge is added,, during the billing process ????????