RE: Surcharges

["McCready, Joan" <Joan.McCready@xxxxxxxxxxxxxxx>]

Tom,

We're doing it, but it is a very manual operation. We have metal surcharges
on certain alloys that use raw materials that tend to flucuate. We have
created separate metal surcharge items (MS-<alloy>, for example) that are
"manufactured" and "inventory" items. They are NOT added to the BOM of the
end item, since our customers want to see the surcharge separate from the
"normal" part sales price. (They are booking these expenses on their P&L in
separate accounts from the sales price of the items they buy.) Therefore,
when we log an order, we have to log each surcharge line item where
appropriate. Conversely, when we ship the end item, we also have to "ship"
the surcharge line item. Surcharge is based on casting weight, so if we ship
5 pieces of a 10-piece release, and the castings weight 100 lbs each, we
have to "ship" 500 lbs of the 1000-lb surcharge release line item.

Very, very messy and manual operation, but the only way we could get the
information to the customer the way they wanted to see it. MAPICS, of
course, applies the "surcharge" concept to the entire order, not to
individual line items, and invoices it with the first items invoiced...

Good luck. It is working for us, but it was a bit of a hassle to get it
going in the first place.

        -- Joan

Joan McCready, IS Manager      phone:  636-479-4499
MetalTek International         fax:  636-479-3399
The Carondelet Division        www.metaltekint.com
8600 Commercial Blvd
Pevely, MO  63070                      


-----Original Message-----
From: Tom Wood [mailto:TomW@xxxxxxxxxxxxxxxxxxxxxxxxxx] 
Sent: Wednesday, March 05, 2003 10:32 AM
To: mapics-l@xxxxxxxxxxxx
Subject: Surcharges


Hello All,

 

We have a plastics blow-molding plant that is experiencing some major
increases in raw material (resin) costs right now.  We would like to
implement a surcharge in COM based on part weight.  Anyone doing something
like this or have any ideas?

 

Thanks,

 

Tom Wood

Fort Recovery Industries