Setting up charge types

For every rate you set up, you must identify the charge type on which it is based. A charge type is an item for which a customer may be billed, such as a flat line haul rate, a fuel surcharge, or a stop charge. It identifies the unit of measure used to calculate the charge. For example, if you charge by the mile, the charge type is mileage-based. If you charge according to the weight of a load, the charge type is weight-based.

The setup of a charge type determines the following:

 Whether it will be used for line haul charges or accessorial charges.

 How invoice details are calculated, e.g., distance, percent of revenue, weight, flat rate.

 General ledger numbers required for third-party accounting systems.

Charge types are categorized as primary or secondary.

A primary charge type is used for a line haul charge. This is the amount the customer will be billed for moving a load. Examples are:

 Freight (Distance)

 Freight (Flat)

 Freight (Weight)

 Freight (Volume)

A secondary charge type is used for any accessorial charge that is billed separately from the line haul cost. Examples are:

 Stop Charge

 Hand Loading

 Fuel Surcharge