Add New Charge Codes

Modified on Tue, 9 Aug, 2022 at 11:58 AM

A Charge Code should be created for every charge/service rendered. Each Charge Code must be linked to a Sales and Cost of Sales general ledger account.

Many Charge Codes can be linked to the same general ledger account. In other words, one can have each Charge Code linked to a unique general ledger account, or summarize the Charge Codes to a smaller set of Charge/Service classifications in the general ledger.

1. Login to Tradewindow Freight, Select company from drop down if multiple companies, then Enter the Login Name and Password

2. Go to Set Up and click on Charge Codes

3. Click on plus (+)

4. Enter charge code, name and other fields by using tab key

Field	Purpose
Code	Up to 5 Characters as required
Name	Is default description, can be amended per line as required
Cost %	is used to calculate an accrual (expected cost) for "cost of sale" items.
GL Accrual	The general ledger account for posting the accrued costs for this charge code. For cost of sale items, such as cartage, an accrual is posted to Cost of Sales (debit) and Accrual (credit). The accrual amount is calculated by applying the charge code percentage to the sell amount with the operator having the facility to change this amount. When the actual cost is posted to the job (cheque or creditor invoice), then the accrual account is debited by the cost amount. Where the actual cost does not match the accrued cost then a Force Profit transaction in the job takes up the remaining accrual as a profit or loss. Automatically, the general ledger has a matching pair of transactions posted – Debit Accrual and Credit Cost of Sales. The accrual account must be type L (liability), as the accrual amount represents the expected amount to pay for job costs that have been billed to clients.
GL Cost	The general ledger account for posting costs for this charge code. This account cannot be a heading or total account or one of the control accounts
GL Sales	The general ledger account for posting revenue for this charge code. This account cannot be a heading or total account or one of the control accounts.
LC Type	for Landing Costing Reports to stipulate Freight or Destination charges - no accounting relevance
Invoice Type	Defaults the invoice type for this charge code - Final, Disbursement, Freight. The operator can change before invoicing.
Group	You can create your own Charge Code Groups and then report job financials based on these groups.
Default Unit	The default billing unit for this charge code, e.g. M3, KG. This is automatically inserted into the job billing line but the operator can change
Dept	Used to limit the usage of the charge code to the nominated department (e.g. ES, IA). Empty means that the charge code can be used anywhere.
Active	Flags for GST or VAT being applicable for this charge code. There are separate GST codes for purchase and sell. Each field must have a valid GST code as defined in the GST code setup. It is very important to correctly assign the GST codes to each charge code; otherwise GST reporting to the Tax Office will be incorrect.

5. To save, click on the tick

6. Click on Save and Close once done