Handling fees are additional costs generated when purchasing products. They can include cost for transportation, packaging, insurance and similar services. It's important to understand that those costs affect the Moving average cost (MAC) of purchased goods. In order to calculate right selling price and profit margin for a product you need to know it's exact MAC amount.To know the exact amount spent on each unit of certain product you must add up all the purchasing costs and divide those between all items on the purchase order. Backstore will automatically divide handling fees on all items taking in consideration unit price and purchased quantity.
In order to know the specific cost of your purchased goods you can add handling fees to purchase orders which will affect the Moving Average Price (MAC). To add handling fees for the unapproved purchase orders, click on the Handling fees option in the menu.
This opens handling fees popup window.
- Choose handling fee type from the list, then click on the + Handling Fee button. Types of handling fees depending on the type of service influencing MAC will become visible:
- Enter the amount, VAT, external document value (is handling fee defined on a different document), and currency values for the selected fees.
- Click on the Save button to save the changes. After adding the handling fees to the purchase order, both Handling fees (H.F.) and Handling fees total (H.F. Total) additional columns are added to the items table.
(H.F.) is calculated handling fee for a single unit and (H.F. Total) is calculated handling fee for the whole item shipment.
If there is more than one item in the purchase order, the handling fees will be divided between them depending on the quantity and the unit purchase price. Handling fee amounts can be edited in the purchase items table.