W722 – Reclaiming Profits with Surcharges - Epicor · 2007. 2. 22. · Summit 2007: Get Connected W722 – Reclaiming Profits with Surcharges Melody Lawrence Software Support Shipping

Summit 2007: Get Connected

W722 – Reclaiming Profits with Surcharges

Melody LawrenceSoftware Support

Shipping costs have skyrocketed for most people. It's no wonder why surcharges have become a very hot topic in the last year. In this informative session, you'll learn the various methods of charging surcharges including version 3000 special charge options. A comparison of these options will enable you to see the best way your company can reclaim this lost profit.

Pre-requisites: None

Wednesday, 5:00 p.m.

© 2007 Activant Solutions Inc. All Rights Reserved

2

Session Objectives

List two programs where surcharge items can be set up in TurnsIdentify which surcharge items will be automatically added and which have to be selected for addition to an orderEvaluate the benefits of using surcharge capabilities for your company



3

Return on Investment Opportunity

Increased costs due to vendor surcharges are decreasing profitability Passing along the surcharges as a surcharge to the customer allows a way to recoup the expense without appearing to overcharge for the individual itemsUsing the Special Charges capabilities allows you to designate which orders should receive surcharges


4

What is a Surcharge?

An extra fee added onto another fee or charge Fee is the price one pays as remuneration for services, especially the honorarium paid to a doctor, lawyer, consultant or member of a learned professionFees usually allow for overhead, wages, costs and markup



5

Are You Paying Surcharges?

What surcharges are you being charged?


6What Types of Surcharges Would You Add to an Order?

Fuel Below Minimum Order AmountItem specific? ? ?



7How Can Surcharges Be Added to an Order?

ManuallyItem set up in Inventory Maintenance D(IMM)Complimentary Item set up in IMM *MSC field in order Totals screen

AutomaticallyBased on criteria established in Item Special Charges Maintenance D2(ISCHGM) *

* Turns version 3000 or higher


8

Manual Entry

Item set up in Inventory Maintenance D(IMM)Can be set to post to a specific account using a GL ClassNon-stock item classificationDROPSHIP as locationCan set up as a complimentary item*

Item added to order in Order Entry (OE) or One Step Invoicing (RE)

Add as line item Complimentary items can be suggested/selected*

*version 3000 or higher, based on System Setup (ZSU)



9

Manual Entry

Complimentary itemSystem Setup ZC(ZSU) Order Entry flag

94. DISPLAY COMPLEMENTARY ITEMS?

Item set up in Inventory MaintenanceAdded to different Turns item using [Comp] option

Suggested by system – based on ZSUAdd as line item to order/invoice

Session Handout 1


10

Manual Entry

Enter an amount in the MISC fieldPosts to GL account designated in G/L Auto Post XrefMaintenance ZC(ZPOSTOP) A/R setup



11

Automatic Entry

Item set up as not on file item in Item Special Charges Maintenance D2(ISCHGM)

Flat amountPercentage of gross

When order meets requirements Added as line item once line entry is completed

Prints on pick ticketPrints on invoiceWill not be included on outbound EDI P/O Confirmation (855)Will be included on outbound EDI Invoice (810)


12

Automatic Entry

Session Handout 2



13

How Do They Work? – Demonstration

Item set up in IMMComplimentary item

Special Charges Maintenance Entry of Order

Application of manual surchargeApplication of automatic surcharge


14

Additional Resources

Customer Web Site http://distribution.activant.com/

Turns version 3000 documentationNew Features Guide – InventoryNew Features Guide – Maintenance ProgramsInventory Basics

Turns version 4000 documentationInventory Basics

Solution DatabaseSolution: 9393 -- How to Set Up a Non-Inventory Item, Such as for a Special SurchargeSolution: 9362 -- What does NON-TAX SPCL CHGS mean?



15


Customer Web Site Solution Database

Solution: 23184 -- How does a unique item get set up to not hit like regular inventory on the GL?Solution: 21497 -- Can Special Charges post to a specific GL Account? Solution: 24815 -- How do you credit a customer a Special Charge amount?Solution: 28542 -- Can a minimum order charge go away if the customer exceeds the minimum amount?Solution: 21626 -- Why are special charges not being applied to orders?Search for additional solutions using key words “surcharge”“special charge” and “services”


16


Custom ConsultingWeb-Based ConsultingOn-Site ConsultingIn-House Consulting

Contact Professional Service [email protected]

Contact Turns Software SupportAngie Miller, [email protected] [email protected]



17

Suggested Action Plan

Review current costs – are surcharges affecting your bottom lineDetermine if surcharges can be added to your customer ordersIf so, when should a surcharge be added

What criteria

How should it be addedAutomaticallyManually

Decide how a surcharge should affect your General Ledger


18

Summary

Surcharges can be set up asItemsSpecial Charges (Not On File item)

They can be added Manually Automatically

Only you can decide if they are right for your company



19

Thank You for Attending

W722 – Reclaiming Profits with SurchargesMelody LawrencePlease submit the Session Feedback Form

To receive NASBA credits, please be sure to complete the Session Feedback Form and sign the class roster in the back of the room

Session W722 – Reclaiming Profits with Surcharges Handout 1 – Complimentary Items

System Setup ZC(ZSU) Order Entry flag 94: DISPLAY COMPLEMENTARY ITEMS? (Y) Display list of complementary items during order entry (N) Do not display list of complementary items during order entry (P) Prompt whether to display list of complementary items during order entry If using a complimentary item to suggest an item specific surcharge, need to use

P or Y option Inventory Maintenance D(IMM) Set up item to use as the surcharge item Reference Solution: 9393 -- How to Set Up a Non-Inventory Item, Such as for a Special Surcharge Stock status: N (Non-stock) To post to a different General Ledger account, use GL Class field Reference Solution: 23184 -- How does a unique item get set up to not hit like

regular inventory on the GL? Location: DROPSHIP Costs: set to 0.00 (usually) In IMM Bring up standard item for which the surcharge should be added Select [COMP] option Complimentary Item Maintenance [COMP] Select (A)dd Enter item number for the surcharge/complimentary item Comma search available Pricing Price Maintenance D(IPM) or Contract Price Maintenance D2(ICPM) Enter price record(s) for surcharge item Or manual entry of price during order/invoice entry

Session W722 – Reclaiming Profits with Surcharges Handout 2 – Special Charges Maintenance

Special Charges Maintenance D2(ISCHGM) Not on File Item setup NOF ITEM #: Item number to show on order/invoice

Must begin with ~ CUSTOMER: Who should be charged this special charge? Customer #, Bill-to #, * + CUST TYPE, (ALL) WAREHOUSE: For which order warehouse does this apply? Warehouse # or (ALL) SHIP VIA: How is the customer getting the product? Field 4 in Order Entry (OE) and

One Step Invoicing (RE) Specific method or (ALL) Additional criteria and information: 1.ACTIVE Y/N If Y will start applying immediately to orders meeting criteria following setup 2.DESCRIPTION Prints on order/invoice as item description 3.ORDER TYPE What types of orders should have the charge applied?

Options depend on modules you have active (O)NE-STEP, (T)WO-STEP, (E)DI, (R)EMOTE, (W)ARRANY/REPAIR, OR

(A)LL-ORDERS 4.BACK ORDERS Should a backorder from this order also have the charge applied? Y = Allow this special charge to be added to backorders.

N = Do NOT allow this special charge to be added to backorders. 5.TAXABLE/ 5.ITEM TAX CODE Should the special charge be taxed?

Yes/No or Code 6.G/L CLASS Enter G/L Class to use for this special charge. 7.PRODUCT CLASS Enter product class to use for this special charge. 8.MEMO #1 9.MEMO #2 10.MEMO #3 11.COST Enter line item cost to use for this special charge. 12.PRICE Two parts to field.

1st Identify if it should be Fixed amount or based on a percentage of order gross (F) - Special Charge price will be a fixed dollar amount

(P) - Special Charge price will be a percentage of the gross order total less any Special Charges 2nd Enter the fixed dollar amount or the percentage to use to calculate the amount

15 character fields, each can be re-named for your designated use though System Prompt Maintenance ZC(MEMNT)

Session W722 – Reclaiming Profits with Surcharges 13.MIN ORDER AMT Enter gross dollar amount over which a special charge will

not be applied if the order meets the remaining criteria Enter 0 to add the Special Charge line item to all sales orders or enter the gross

order amount over which the Special Charge will NOT be added as a line item to the sales order

For example: If amount entered is 100 Orders with a gross amount of 100 or above will not have the special charge

applied

Session Feedback Form Summit 2007 – Las Vegas, NV

Please take a moment to evaluate this session and offer feedback. Activant uses your input to understand your needs and to determine future Summit sessions.

Session Name: Session Number:

Presenter’s Name:

How important is this topic to your job/company? 1 2 3 4 5

Not Important Important

Please rate the educational value you received from this session. 1 2 3 4 5

Low Value High Value

1. What software are you currently using?

2. How long have you personally used this software?

3. Describe the effectiveness of your instructor.

4. What is your overall evaluation of this session?

5. What could have been done to improve this session?

6. What sessions would you like to see presented at future conferences?

7. What issues will be critical to your business in the next 12-24 months?

Check here if you would like CPE credits. To receive credits, be sure to sign your name at the bottom of this form and sign the roster in the session room.

Answering the following questions is OPTIONAL (but required for CPE Credits).

Yes No

Did this session meet your expectations, based on the description/objectives in the registration materials?

Were the pre-requisite requirements stated in the course description appropriate?

Did the session materials contribute to achieving the learning objectives?

Did the equipment (screen, microphone, projector, etc.) in the room enhance the instruction?

Was the time allotted for the session appropriate for the topic?

Name:__________________________________________________________________________________________________

Company:_____________________________________________________ E-mail:___________________________________

Documents

W722 – Reclaiming Profits with Surcharges - Epicor · 2007. 2. 22. · Summit 2007: Get Connected W722 – Reclaiming Profits with Surcharges Melody Lawrence Software Support Shipping