Discover how to use Surcharges in Sage 200
When raising a sales order or invoice for a customer, you might occasionally encounter extra costs that need to be covered, which may not relate to carriage or the actual items on the order or invoice. In cases like these, you may need to add a surcharge to this.
In this week’s tip, we explain what surcharges are and the four different ways you can use them in Sage 200 Professional.
What is a surcharge?
A surcharge is the polar opposite of a discount. This is for extra costs that are incurred to be able to fulfil an order or invoice and it could be made up from a variety of things.
How do I use surcharges in Sage 200?
There are various ways you can use surcharges in Sage 200.
Option 1:
If a surcharge is specific to a customer or customers, you can set a default surcharge percentage against each invoice or order raised for them.
To do this, you need to find the ‘Sales Ledger’ account in question and ‘Amend Account’.
Next, open the ‘Pricing’ tab.
In the ‘Discounts’ section at the top of the screen, select the ‘Invoice Discount’ and enter a percentage.
To be added as a surcharge this needs to be a negative figure.
For example, if you wish to apply a 10% surcharge to an order total, you will enter ‘-10’ in the field. If you enter a positive figure here, it will deduct the percentage as a discount.
Raising an order for this customer will show the surcharge in the ‘Delivery and Invoicing’ tab.
This will add the surcharge to the order and will display on the printed order.
Note: If you use a custom layout, you will need to check if this has been included in the design.
The same principle relates on raising an invoice via the ‘Invoicing Module’. When posting the invoice, the surcharge will be included in the sales price, it doesn’t split the value to a separate nominal code.
Option 2:
If the surcharge is a one-off, when raising a sales order or invoice you are able to manually go into the ‘Delivery and Invoicing’ tab.
Next, go to the ‘Invoice Discount / Surcharge’ section and manually enter the surcharge percentage in the‘Discount %‘ field.
Ensure you change the dropdown to the right to be surcharge.
Note: If you use a custom layout, you will need to check if it has been included in the design.
The same principle relates on raising an order via ‘Sales Order Processing’. When posting the invoice, the surcharge will be included in the sales price, it doesn’t split the value to a separate nominal code.
Option 3:
You can utilise the ‘Price Book‘ module to add surcharges against individual stock items or product groups (so all of the stock items within the product group) via a‘Quantity Break Discount’.
To do this, go into ‘Price Book > Discounts > Discounts for Product Group’. Alternatively, you can go to ‘Price Book > Discounts > Discounts for Stock Item’.
Select one, for example ‘Product Group’ and click ‘Add’ to create the new surcharge.
Within the ‘Add New Discount’ form, enter a relevant name for the surcharge, and select ‘Quantity Break Discounts’.
Now you can add quantities where it will let you add a percentage of surcharge for values of, and over, a particular quantity.
As shown in this image:
- Quantities up to 7 will have no surcharges
- Quantities of 8 to 11 will have a 4% surcharge
- Quantities of 12 and above will have 8% surcharge.
In order to make this surcharge active for customers, this will need to be linked to a ‘Customer Discount Group’. A Customer Discount Group is a place to determine which customers this surcharge or discount will relate to.
Note: To create a Customer Discount Group access ‘Price Book > Discount Groups > Customer Discount Groups.’
Within this screen you can link the Discount Group to customers and to the Discount/Surcharge.
On raising a sales order or invoice, selecting an item in my ‘Accessories Product Group’ for a linked customer and entering a quantity of 7 will use the usual price for the customer.
If you change the quantity to 8, this will raise the unit price by 4%.
Note: This does not show as a surcharge on the order/invoice header or in any other boxes on your order/invoice. It will not show as a separate surcharge value on your printed order/invoice.
When posting the invoice, the surcharge will be included in the sales price, it doesn’t split the value to a separate nominal code.
Option 4:
You can add a surcharge to an order or invoice manually either by adding a free text item or creating an additional charge. This is useful if your surcharge is for the order and you don’t want it to affect the sales price.
Free Text Item: Simply add a new line to your sales order and type in a description relating to the surcharge.
You are able to select which nominal code this surcharge will post to.
Additional Charge: If your surcharges are going to be used on a more regular basis, you can set them up as an additional charge. To do this, open ‘Sales Order Processing > SOP Maintenance > Additional Charges’.
Click ‘Add’ to create a new Additional Charge. Enter a code and name that relates to the surcharge.
Next, enter the ‘Charge Value’ and ‘Notional Cost’ and select which nominal code this will use. Once done, click ‘OK’.
On the sales order or invoice add an ‘Additional Charge’ and select your Additional Charge for surcharges.
This image below shows the charge selected when raising an invoice:
Note: Both the Free Text Item and Additional Charge will show separate lines on the order/invoice. Both will post to the nominal code selected.
If you would like any further information, please email our support team at sagesupport@pkfscs.co.uk or call us directly on 01332959008.
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