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.

You use a primary charge type for a line haul charge. This is the amount billed to the customer for moving a load. Examples include:

  • Freight (Distance)

  • Freight (Flat)

  • Freight (Weight)

  • Freight (Volume)

You use a secondary charge type for any accessorial charge that is billed separately from the line haul cost. Examples include:

  • Stop Charge

  • Hand Loading

  • Fuel Surcharge

In TMW Operations, you use the Charge Type Maintenance feature to create, edit, and delete charge types. To access this feature, go to Tools > Setup > Charge Type Maintenance.

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The Basis Unit, Rate Unit, and Charge Units fields determine how the system calculates the charge. Entries in all three fields must be in agreement with each other. The following table shows examples of agreement.

Basis Unit Rate Unit Charge Units

Distance

$/Mile; $/Kilometer

Miles, Kilometers

Revenue

$/Dollar

US Dollars; CAN Dollars

Flat

Flat

Flat

Time

$/Hour; $Day

Hours, Days

Count

$/Piece, $/Case, $/Box, $/Pallet, etc.

Pieces, Cases, Boxes, Pallets, Slips, Coils

Weight

$/100 lbs; $/Pound; $/Ton

Pounds, Tons, Metric Tons

Volume

$/Gallon

Gallons