Costs and Service Charges

Service Charges

Service charges link to service, freight or finance contracts. The contract rate of the service charge is defined in the service, freight or finance contract. See Service, Freight and Finance Contracts.

For service and freight contracts, each contract rate has rate periods. The service charge is only applicable if the service reference date (for example, the bill of lading date) is within a rate period. Each rate period can have multiple rate details. The rate details define the pricing for the service charge. For finance contracts, each contract rate can have multiple rate details. The rate details define the pricing for the service charge.

There are many types of rate detail basis for calculating the value of the service charge; for example, a fixed amount, by wet mass, by a percentage of invoice value, or by a number of packages.

If service charges are added to a set of contract terms, the service charges apply to all despatch orders with that set of contract terms. The rate details (defined in the service, freight or finance contract) can be overridden, either in the contract terms, or on the Contract Term Overrides tab of an individual despatch order. Service charges can also be added directly to despatch orders (on the Service Charges tab), to despatches, or to despatch templates. However, service charges linked to finance contracts can only be added to purchase contracts, contract templates and purchase despatch orders.

Copying and Pasting of Service Charges

A single service charge can be copied and pasted between sets of contract terms and the Service Charges tab of despatch orders, despatches or despatch templates. However, a service charge based on a finance contract can only be pasted in a purchase contract, contract template and or purchase despatch order.

If the rate details of the service charge have been overridden, the overrides are also copied and pasted.

As applicable, right-clicking a service charge in a Service Charges table displays the Copy and Paste menu options. This copying is not the same as the Copy To Clipboard menu option, which copies the entire table to the clipboard, so that the table can be pasted into another application, such as Excel.

Costs

Costs are simpler than service charges. Costs do not link to service, freight or finance contracts, neither are the rate details only applicable in a rate period.

A cost can be for service, freight or finance. Each cost has a provider and an activity, and may have one or more rate details. Like for service charges, each rate detail has a rate detail basis, on which the value of the cost is calculated.

Costs cannot be tiered, or based on demurrage/despatch.

You can add taxes to costs. The tax configuration (as specified in the Tax Editor) cannot be edited for the cost. The reference date for tax rates is the bill of lading date, or else the first available date out of ATD at origin, ETD at origin or planned despatch date. (Snapshots, revaluations and non-final invoices use the bill of lading date, or else the first available date out of: ATD at origin, ETD at origin, ATA at origin, ETA at origin, the quota end date, or planned despatch date.)

Costs can be added on the Costs tab of the Service Charges node of sales and purchase contract terms; the Service Charges node of contract templates; and the Service Charges tab of any despatch order, despatch or despatch template. However, finance costs can only be added to purchase contracts, contract templates and purchase despatch orders. Cost Templates can be used to simplify the addition of costs.

Budgeted Costs

Budgeted costs are used to budget for costs of service, freight or finance before the provider of that service, freight or finance is known.

Budgeted costs do not link to service, freight or finance contracts, neither are the rate details only applicable in a rate period. Each cost has an activity, and may have one or more rate details. Like for service charges, each rate detail has a rate detail basis, on which the value of the cost is calculated. Budgeted costs cannot be tiered, or based on demurrage/despatch.

You can add taxes to budgeted costs.

Budgeted costs can be added in the Budgeted Costs table of the Service Charges node of sales and purchase contract terms and in contract templates. Budgeted costs cannot be added to despatch orders or despatches. Cost templates can be used to simplify the addition of budgeted costs.

Copying and Pasting of Costs and Budgeted Costs

Costs (including costs in cost templates) and budgeted costs can be copied from one MineMarket object to another. A budgeted cost can also be pasted as a cost, and likewise a cost can be pasted as a budgeted cost. However, a finance cost cannot be copied to a sales contract or sales despatch order.

Both costs and budgeted costs can be pasted as a rate detail in a service, freight or finance contract if the service type matches the cost. For example, a freight cost can be copied to a freight contract but not to a service contract.

If you copy a cost or budgeted cost with a tax to create a rate detail in a service, freight or finance contract, the tax displays on the Contract Taxes tab and can be edited. See Specify a Tax for a Service, Freight or Finance Contract.

As applicable, right-clicking a cost or budgeted cost or in a Costs table displays the Copy and Paste menu options. Multiple budgeted costs can be selected for copying together if required. If multiple costs are grouped together because the costs have the same provider and activity, the group of costs is copied together. After pasting the group of costs, individual costs can be deleted if required.

This copying is not the same as the Copy To Clipboard menu option, which copies the entire table to the clipboard, so that the table can be pasted into another application, such as Excel.

Copying and Pasting of Service Charges Nodes in Contract Terms

You can copy all the budgeted costs, costs and service charges in a Service Charges node. When you paste them to another Service Charges node, they are added to any budgeted costs, costs and service charges already in the destination node. The source or destination node can be in any set of contract terms in a sales or purchase contract, or in contract term overrides in a despatch order. However, finance budgeted costs, costs and service charges can only be copied to contract terms in a purchase contract or a purchase despatch order.

If the source node is in contract term overrides in a despatch order, Override Budgeted Costs must be checked for the budgeted costs to be copied. Likewise, Override Service Charges must be checked for the costs or service charges to be copied. If the destination node is in contract term overrides in a despatch order, Override Budgeted Costs must be checked for the budgeted costs to be pasted and Override Service Charges must be checked for the costs or service charges to be pasted.

As applicable, right-clicking a Service Charges node displays the Copy and Paste menu options.

Invoicing of Costs and Service Charges

Budgeted costs are not included in invoices.

Costs are not included in sales or purchase invoices; however, they can be invoiced separately using service (for service or finance costs) or freight invoices. Default payment terms can be configured for each organisation that provides the service, freight or finance. If the organisation does not have default payment terms, the default payment terms of the company are used. See Specify Default Payment Terms for an Organisation or Company.

Costs can be invoiced if associated with a despatch (either because the cost is directly on the despatch, or the despatch order is on the despatch), or invoiced based on the despatch order.

Cost rate details can be overridden in service and freight invoices.

Depending on the invoice scope, service charges may be included in sales or purchase invoices, or invoiced separately using service (for service or finance contracts) or freight invoices. Service charges can also be displayed on sales or purchase invoices without affecting the invoice value. If invoiced separately, the payment terms of the applicable service or freight contract apply. Payment terms cannot be specified for finance contracts. When a service charge for a finance rate is invoiced separately, the default payment terms of the (bank) organisation are used.

Budgeted costs, costs and service charges are included in despatch order and quota snapshots, and in the profit and loss of trades. Budgeted costs are considered until they are replaced with a cost or service charge of the same service type, activity, name and type:

• If a budgeted cost has no matching cost or service charge, the budgeted cost applies.
• If a time-based budgeted cost has a matching cost or service charge and the cost or service charge has a shorter duration than the budgeted cost, the cost or service charge applies, and the budgeted cost applies for the remaining duration. For example, if a budgeted cost has a duration of 60 days, but the matching cost has a duration of 35 days, the budgeted cost still applies with a duration of 25 days.
• If a time-based budgeted cost has a matching cost or service charge and the cost or service charge has an equal or longer duration than the budgeted cost, the cost or service charge applies.
• If a non-time-based budgeted cost has a matching cost or service charge, the cost or service charge applies.
• If a cost or service charge has no matching budgeted cost, the cost or service charge applies.

The matching cost or service charge can be in the applicable set of contract terms, on the despatch order, or on the despatch.

Overriding of Costs and Service Charges

If the same rate detail has multiple overrides, when the despatch order snapshot or invoice is calculated, any override on the despatch has highest precedence, followed by an override on the Service Charges tab of the despatch order, followed by any overrides in the contract (at quota, product or contract level).

However, if rate details are overridden on the Contract Term Overrides tab of the despatch order, only those rate details are included in snapshot and invoice calculations. Any costs and service charges added on the Service Charges tab of the despatch order or on the despatch are ignored.

Video

A Datamine consultant recorded this video about configuring and invoicing service charges in MineMarket.