Using Surcharges in Connected

Modified on Thu, 29 Sep 2022 at 04:03 PM

The use of a percentage surcharge can be used on the Account Invoice, for situations where a fuel surcharge may need to be temporarily added to invoices to offset higher costs of fuel and delivery.

Connected allows for the creation and labeling of this type of charge that can be applied to specific inventory items on an Account Invoice or Credit Memo.


Surcharge Activation and Setup

There are 5 areas in Connected that need to be modified to utilize the surcharge feature.

  1. Invoices tab under the A/R Defaults menu
  2. A/R Accounts under the Company Setup menu
  3. A/R Tax codes (surcharge taxable or not)
  4. Inventory Items window (item excluded from surcharge or included)
  5. Invoice forms (Account Invoice and Credit Memo)

Activating in A/R Defaults

NOTE: Before activating surcharges, ensure that all invoices are posted.  Unposted invoices should not be created until all setup is completed.

1) Select File -> Company Setup -> A/R Defaults.
2) Click the "Invoices" tab.

3) Select the "Use Subtotal Surcharge" checkbox and add a Surcharge Label and Default %, as shown in the following screen.

4) Click OK to save the changes and close the window.

Surcharge Default Revenue G/L Account

Once surcharges are activated, a default Revenue general ledger account must be specified.  Invoices cannot be created until this account is specified.

1) Select File -> Company Setup -> A/R Accounts.

2) Enter a value in the "Surcharge Revenue" field, as shown in the following screen.

3) Click OK to exit and save the changes.

Making Surcharge Taxable

If the surcharge amount is subject to sales tax, each sales tax code needs to be updated.

1) Select A/R -> Setup - Sales Taxes.

2) Click on a tax code in the list at the bottom of the window, and click Modify.

3) Select the "Tax Surcharge" checkbox, where applicable.

4) Click Save to confirm the changes and repeat on any other Sales taxes where applicable.

Excluding Specific Items from the Surcharge

When the Surcharge feature is enabled, all items default to having the Surcharge apply.  Specific items can be disabled, allowing an invoice that combines items with and without surcharges, on an item by item basis.

To disable the surcharge:

1) Find an item in the Inventory Items screen or by drilling into a list from the Item Query window.

2) Click Modify and then check or uncheck the "Surcharge" checkbox.

Adding the Surcharge to the Invoice Layout (print/pdf version)

After the surcharge feature is enabled, the Invoice form will need to be updated to include the new amount, label, and percentage.  

The following screen shows an example of how to add a form field and the applicable fields for surcharges.  

Reference: Customizing Forms for additional information on form edits.


Using Surcharges

Surcharges are assigned in the following ways:

-Adding an Account Invoice manually

-Shipping a Sales Order (invoice created will include a surcharge)

-Recurring Invoices (when invoice is created a surcharge is applied)

-Credit Memos (Adding manually or from Account Invoice window)

The surcharge field is located below the Subtotal of an invoice, before the Freight field.

The surcharge percentage can be modified up until the point where the transaction is posted.

NOTE: If the Surcharge label is changed after an invoice has been created, the previous label used at the time the invoice was created will be present

NOTE: The Invoice import does not support surcharge assignment at this time.  (coming soon)

Surcharges Expanded

The surcharge feature can be used for a different application.  For example, the overall calculation of a discount on an invoice.  If a negative value is applied, the invoice will be reduced by the percentage specified vs increased.  

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