Extra Charge (SD-BF-EC) 

Use

You use Extra Charge if you want to define surcharges on top of your regular prices, which you have negotiated and agreed upon with a customer. Customers with payment obligations can pay these off thanks to surcharges on regular prices. The system levies the extra charge directly for each order after tax and takes the extra charge into account during pricing.

Implementation Notes

       1.      You also have to configure the standard ERP Customizing settings for pricing, such as defining condition types and access sequences.

       2.      The specific condition types for the extra charge are not effective until they have been defined in the condition master data. The system will then take extra charges into account during pricing.

Integration

Extra charge is part of pricing.

Features

You edit extra charge conditions for each customer at condition record level. You must assign customer numbers to the extra charge amounts in the view for the chosen condition type. You can also create contract data for a condition record.

Depending on the Customizing settings, you can choose between fixed and variable extra charges:

·        Use the condition type for the fixed extra charge when you want to charge the customer a contractually agreed-upon, constant (absolute) amount whenever a defined event occurs.
In the case of a fixed extra charge, the system charges the defined amount once for each order, regardless of the order information. The system links the extra charge with the first non-cancelled item during billing.

·        Use the condition type for the variable extra charge when you want to charge the customer an additional, contractually agreed-upon, percentage of the standard price whenever a defined event occurs.
When a variable extra charge is used, the system charges the customer the amount calculated, based on the respective order information. The system links the extra charge with a specific order item.
In contrast to the fixed extra charge, the variable extra charge increases as the bill amount increases.

Depending on the condition type used, the system determines the respective fixed or variable extra charge for each customer during pricing.

 

Along with the extra charge, you can create a reference to an agreement in a contract with your customer (contract reference).

·        When an extra charge with contract reference is used, the system generates a posting line for a G/L account and a customer account, respectively.

The contract-related extra charge requires additional data:

·         Contract type

·         Contract number

·         Contract movement type

The system uses the contract number to uniquely identify the corresponding contract. The system controls the account assignments using the movement type.

 

·        When an extra charge without contract reference is used, the system generates two posting lines for the same customer account.

 

The system creates the extra charge using specific condition types that contain specially configured condition categories.

You define the extra charge as a specific condition and process it manually. You have to configure a separate condition record for each extra charge agreement. The key components for the extra charge are always the sales organization (to derive the company code) and the contract partner’s customer number. The contract-related extra charge requires additional data (contract data).

Example

The extra charge can:

·        You can use the extra charge to model compensation for failure to perform, if a customer fails to meet the agreed-upon minimum purchase quantity within the defined period.

·        You can use the extra charge to model the repayment of old debts: The customer is billed an additional amount on each order, regardless of the material items.

 

See also:

For more up-to-date information about Extra Charge, see SAP Note 716971.